US expats are still required to file a US tax return annually, regardless of where they live or pay local taxes. Making a mistake or missing a requirement can be extra taxing because of the financial consequences of the added requirements.
Not only are US expats responsible for their 2024 income tax return, but other unique requirements relating to international bank accounts, foreign assets, and even currency exchange.
We’ll give you an expat-specific checklist to review your 2024 income tax return effectively and stay compliant with US tax laws.
Income tax return details
Double-check your personal information. See if the following are correct:
- SSN/ITIN
- Filing status (single, married filing jointly, etc.)
- Dependent names and SSNs
- Foreign address
Verify if your income is accurate. Make sure you have documentation for:
- Earned income (employer contracts)
- Passive income (foreign 1099-equivalents, brokerage statements)
- Rental income (lease agreements, bank deposits)
- Other income (supporting contracts, payment logs)
Adjustments to income. You’ll need to verify contributions on your tax return if you own a traditional IRA, Health Savings Account (HSA), or applicable loans.
You’ll need to choose between Standard or Itemized deduction.
Ensure you’re claiming applicable credits such as:
- Additional Child Tax Credit (ACTC)
- Foreign Earned Income Exclusion (FEIE)
- Foreign Housing Exclusion or Deduction
- Foreign Tax Credit (FTC)
If you have a tax refund, ensure your bank account info is correct for direct deposit/refund.
Check if all your attached forms are complete and accurate. Some expat-specific forms are:
- Form 2555 (FEIE)
- Form 1116 (FTC)
- Form 8938 (FATCA)
- Form 8833 (Treaty-Based Return Disclosure)
Foreign tax credits and exclusions
There are specific tax benefits for US expats that they can enjoy when they file their 2024 US tax return. The IRS provides two primary mechanisms for avoiding double taxation:
Foreign Earned Income Exclusion (FEIE)
The FEIE excludes a portion of your earned foreign income from your US taxes (like your salary or wage). For 2024, you can exclude up to US$126,500.
This does not apply to your unearned income for the year, like interest, dividends, or capital gains.
Foreign Tax Credit (FTC)
The FTC offers US expats a dollar-for-dollar credit against their US tax liability for foreign income taxes paid.
When you claim the Foreign Tax Credit, you can only use it to reduce the US taxes owed on your foreign-sourced income, not on your total US tax liability.
The Foreign Earned Income Exclusion (FEIE) and the Foreign Tax Credit (FTC) can be combined, but with strict limitations.
Additional reporting requirements: FATCA and FBAR
US expats and taxpayers with overseas accounts can have additional reporting requirements depending on the activity of their foreign accounts.
The IRS examines FBAR and FATCA compliance to detect if there are unreported income and foreign assets. FBAR (FinCEN 114) focuses on bank account balances, while Form 8938 under FATCA targets a wider range of financial assets.
FBAR
FBAR is filed separately from your income tax return but it is still important to know this. If your foreign account held US$10,000 or more at any point in 2024, then you’ll need to file this via FinCen which is due on April 15 but with an automatic extension to October 15.
FATCA
FATCA is included in your 2024 income tax return, specifically through Form 8938. You will need to attach this with your tax return if total foreign assets exceed US$200,000 in 2024 for single filers (US$400,000 for married filing jointly).
Currency Conversion
US expats will need to convert all foreign amounts to USD using IRS-approved yearly average or spot rates on the payment date. You can use the IRS-published annual average exchange rate for most income (wages, salary, and pensions)
You will need to use the exchange rate on the exact date a payment was received to ensure consistency in rates used across income, taxes paid, and foreign assets.
Deadlines for US expats
- April 15, 2025 – The original tax filing and payment deadline for all Americans.
- June 17, 2025 – US expats’ tax filing deadline. US expats are given an automatic 2-month extension without any forms needed.
- October 15, 2025 – Another extended deadline for US expats, this time granted by request (via Form 4868 Federal Extension).
- December 16, 2025 – In rare cases, expats can request two additional months beyond October by writing a letter to the IRS explaining their circumstances. This is not automatic and must be approved.
Even if US expats owe no tax (e.g., because of exclusions), they still must file if their income exceeds the filing threshold.
Other Common Checklists
Estimated tax payments: If you made quarterly estimated payments (Form 1040-ES) or had foreign withholding, ensure that they are correctly listed on Form 1040
Bank Account & Direct Deposit Info: Ensure a US-based bank account and double-check your routing and account numbers for refunds.
Signatures and E-filing: Make sure that all returns are signed (digital signature for e-filing).
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