Americans abroad: do you still file U.S. taxes, and what is the FBAR?
Moving abroad does not end your U.S. tax filing. U.S. citizens and green card holders are taxed on their worldwide income wherever they live. Many expats end up owing little or nothing, but only if they file and claim the benefits.
Your deadlines
June 15. If you live and work outside the U.S. on April 15, you get an automatic 2-month extension. Interest on any tax you owe still runs from April 15.
October 15. File Form 4868 if you need more time.
Two ways to lower or erase the tax
Foreign earned income exclusion. The IRS says: "For 2026, the maximum exclusion amount has increased to $132,900." To qualify, you must be a bona fide resident of a foreign country or be physically present abroad for 330 full days in a 12-month period. Three things to know:
It covers earned income only, such as wages and self-employment. Pensions, interest and dividends do not count.
It is not automatic. You get it only by filing a return with Form 2555.
Skip the return and you lose the exclusion for that year's filing.
Foreign tax credit. If you pay income tax to the country you live in, Form 1116 can give you a credit for it against your U.S. tax.
The FBAR: a separate report
The FBAR is a report of your foreign bank and financial accounts. You must file it if the combined value of those accounts "exceeded $10,000 at any time during the calendar year." Combined means added together. Three accounts holding $4,000 each count.
It is FinCEN Form 114. The IRS says: "You must file the FBAR electronically through FinCEN's BSA E-Filing System." It does not go in with your tax return.
It is due April 15, and "you're allowed an automatic extension to October 15."
No tax is due with an FBAR, but there are civil penalties for not filing one.
With larger balances, Form 8938 may also be required with your tax return.
Behind on filing?
Many Americans abroad find out years later that they should have been filing. Do not ignore it. We look at the years you missed and explain your options for catching up.
How we help
Solving Life prepares expat returns with Form 2555 or Form 1116 and files the FBAR, all online, in any time zone. Text (720) 432-0981 or send an inquiry at solvinglifellc.com.
Sources:
General information, not tax advice for your situation
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