If you’re a U.S. citizen or resident alien living and working outside the country, the deadline for filing your 2023 taxes is quickly approaching. While the regular tax deadline was April 15th for most taxpayers, there is an automatic two-month extension to June 17th for expats. This extension applies to individuals who either live outside of the U.S. and Puerto Rico or are serving in the military outside the country during the regular tax deadline.
To qualify for the June 17th deadline, you must meet the criteria set by the IRS. This includes living outside of the U.S. and Puerto Rico or serving in the military outside the country during the regular tax deadline. It is important to note that while the two-month extension is automatic, you must still attach a statement to your return explaining your situation.
It is recommended to pay any balance due as quickly as possible to avoid accruing interest after the original April 15th deadline. The IRS offers convenient payment methods such as an IRS Online Account, Direct Pay, and the Electronic Federal Tax Payment System. However, if you are unable to meet the June 17th deadline, you can file for a tax extension by submitting Form 4868, which extends the filing due date to October 15th.
In addition to income tax filings, American expats may face additional reporting requirements for foreign income and assets. The complexity of these requirements can be daunting, and mistakes can be costly. A recent survey revealed that approximately 1 in 5 American expats feel uncomfortable filing U.S. taxes while living abroad.
Some expats may need to report foreign bank accounts by filing the Report of Foreign Bank and Financial Accounts (FBAR) if the combined account value exceeds $10,000 at any time during the year. The deadline for FBAR filing is typically April 15th, but it is automatically extended to October 15th for expats. Additionally, expats may need to complete and attach Form 8938 if certain foreign assets exceed yearly thresholds.
Failure to file the FBAR or Form 8938 can result in penalties of up to $10,000 or more, depending on the circumstances. It is crucial for expats to understand and comply with all reporting requirements to avoid financial consequences.
Expats living and working abroad must be aware of the upcoming tax deadlines and reporting requirements for 2023. It is important to take the necessary steps to ensure timely and accurate tax filings to avoid penalties and potential financial setbacks.
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