Whether you need to file a state income tax return depends on whether your state of residence requires you to file a state income tax return, the rules of your state, and whether you’ve earned or received income originating from that state. Do American expats have to file a state income tax return? We discuss these in greater detail below. The IRS uses a series of tax items to lower or fully reduce your foreign income tax obligation. That said, while you may need to file, you may not need to pay any U.S. income taxes regardless of where you earned the income. resident alien, you’ll be subject to U.S. is one of two countries in the world where taxes aren’t based on residency (the other country is Eritrea). Generally, you must file a tax return if you earn foreign income above applicable income minimums, or a type of income that requires you to file a tax return for other amounts you earn (such as self-employment income). Earn less than $12,950 (which is the 2022 Standard Deduction for a single taxpayer)ĭo American expats have to file a federal tax return if they earn foreign income?.Don't have any special circumstances that require you to file (like self-employment income).Generally, if you don’t have a specific type of income that requires you to file a return, such as self-employment income, you won't need to file a tax return if your income is less than your Standard Deduction.Īs an example, for 2022, you typically don't need to file a tax return if all of the following are true for you: The Standard Deduction, along with other available deductions, reduces your income to determine how much is subject to income taxes. These amounts are set each year by the federal government and are designed to index with inflation. These gross income thresholds typically amount to the Standard Deduction amount for your filing status and age. tax return if you earned above the minimum income threshold. and now lives abroad, you will need to file a U.S. If you are an American expatriate (expat), someone who moved from the U.S. The IRS has special rules that allow American expats to lower their taxable income.taxes if they earn above a minimum income threshold are typically eligible for an automatic 2-month extension to file, but not to pay any owed taxes. American expats must file a federal tax return and possibly pay U.S.An expat is someone who moves from their native country and settles abroad.
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