But before you jump to claim the FEIE, there are a few things you should know:

• If used properly, the FEIE can save you thousands of dollars on your United States taxes
• It’s not a blanket foreign income exclusion — there are stipulations on what you can exclude and what you can’t
• You don’t automatically get the FEIE — you need to meet specific qualifications and then file the proper paperwork (Form 2555)
• The FEIE isn’t your only tax relief option — you should ask your Tax Advisor what options are available to you based on your specific situation.

U.S. taxes for expats aren’t easy. Let our experienced Expat Tax Advisors help prepare your tax return this year to ensure the foreign earned income tax exclusion is elected when it is most beneficial to you. Ready to claim the FEIE? We’ve got a tax solution for you — whether you want to DIY your expat taxes or leave it to one of our experienced Tax Advisors. Head on over to our Ways to File page to choose your journey and get started.

What foreign income can you exclude with the FEIE?

The Foreign Earned Income Exclusion can help reduce or eliminate U.S. taxes on foreign income earned while working abroad, but it doesn’t apply to all sources of income.

This exclusion is only available for earned income and doesn’t apply to passive or investment income such as interest and dividends. Foreign earned income includes:

• Salary
• Wages
• Bonuses
• Commissions
• Self-employment income

All income must have been earned in a foreign country to count as foreign earned income.

Note: You might qualify for the foreign earned income exclusion even if the country in which you’re working doesn’t assess income tax on compensation, like the UAE.

Who qualifies for the Foreign Earned Income Exclusion?

The foreign income tax exclusion applies to those who have lived abroad for a certain period of time within the tax year. However, partial-year exclusions are available if you’ve recently moved to a foreign country or returned to the U.S. mid-year.

The FEIE is available to expats who either:

• Work outside the U.S. as employees, whether for a U.S. or non-U.S. employer
• Work outside the U.S in a self-employed or partner capacity
• Pass either the Bona Fide Residence Test or the Physical Presence Test

Employees of the U.S. government can’t claim the foreign income exclusion. However, an employee of a private company under contract with the U.S. government might still be eligible.

Passing the Bona Fide Residence Test

To qualify as a Bona Fide Resident and pass the test, you must prove that you have more ties to a foreign country than the U.S. You also must be a resident of that country for an uninterrupted period that includes an entire tax year. When and if you go back to the U.S., you must have the intention of returning to your current foreign country of residence. In addition, you must:

• Be a U.S. citizen or be a resident alien of a foreign country with which the U.S. has an income tax treaty.
• Earn active income. Unearned, or inactive, income like pension payouts, interest, and dividends cannot be included.
• Be overseas for work for a period longer than a year.
• Have a permanent place of work in a foreign country.

It is possible to be a Bona Fide Resident for part of the year if you spent at least a full tax year outside the U.S. in a prior year. As a result, you can claim the FEIE for part of the year.

Passing the Physical Presence Test

To qualify under the Physical Presence Test, you must have been living outside the U.S. for 330 full days out of the year. Be careful when you track your time, because a “full day” counts as 24 hours starting at midnight, and you need to be in-country for every minute of those 24 hours.

For example, if you lived in Windsor, Canada and popped over the border to Detroit for Friday night and came back Saturday evening, you wouldn’t be able to count that time towards your 330 full days.

How much foreign income can I exclude?

If you’re an expat and you qualify for a Foreign Earned Income Exclusion from your U.S. taxes, you can exclude up to $112,000 or even more if you incurred housing costs in 2022. (Exclusion is adjusted annually for inflation). For your 2023 tax filing, the maximum exclusion is $120,000 of foreign earned income. If you’re married and both of you meet either the bona fide residency test or the physical presence test, you can each claim the FEIE.

Foreign Tax Credit vs. Foreign Earned Income Exclusion

It’s important to choose between the foreign income exclusion vs. foreign tax credit wisely. If you claim the exclusion and then change back to the foreign tax credit, you can’t claim the exclusion again for five years. The only way to claim the exclusion again involves a costly process with the Internal Revenue Service (IRS). Get tax help from an expat tax advisor to help you understand your options.

Claiming the foreign tax credit and filing Form 1116 might be the better option if any of these apply:

• You’re paying foreign tax at a higher rate than your U.S. tax rate
• You wish to participate in an individual retirement arrangement (IRA)
• You qualify for certain family-related credits based on non-excluded income
• You wish to exclude or reduce taxes on passive or investment income

Foreign Earned Income Exclusion extensions

Even if you haven’t been out of the country long enough to claim the exclusion by your expat filing deadline, you can request an extension to file until you’ve met these time requirements.

You generally must claim the exclusion either:

• Within one year of the due date of your tax return
• By amending a timely filed return

However, you may claim the exclusion if:

• The IRS hasn’t discovered your failure to file your return claiming the exclusion, or
• You owe no tax after taking the exclusion into account

If you haven’t filed returns in prior years, you still might be able to exclude your foreign earned income from U.S. tax. This could have the effect of eliminating your tax liability and any penalties and interest that would be assessed.

Foreign Housing Exclusion and Foreign Housing Deduction

If you’re an expat and you incur foreign housing expenses, you might be able to exclude or deduct them. The Foreign Housing Exclusion is available for expats working as employees with housing expenses like rent and utilities.

The foreign housing deduction is available for self-employed expats paying foreign housing expenses. The amount of your housing exclusion or deduction is based on the difference between the following:

• Your actual foreign housing expenses
• A base amount for your foreign country of residence

You can use the Foreign Housing Exclusion if your housing costs total more than 16% of that year’s FEIE.

To calculate the maximum amount you can exclude, you’d multiply that year’s maximum income exclusion by 0.3 to get 30% of the full exclusion amount. So, for 2023, you’d take $120,000 x 0.3 = $36,000. Something to know is that most large metro areas have higher limits, so it’s important to have a Tax Advisor who knows the ins and outs of taxes in your specific area.

Common problems U.S. expats have with the foreign income exclusion and Form 2555

U.S. expats have a lot of the same questions and issues when they file their FEIE, but these are the most common problems associated with the FEIE:

• You didn’t file Form 2555 – Many expats assume that if they qualify for the FEIE it will be automatically added to their tax filing. To claim the FEIE you must file Form 2555.
• You’re a government employee — Unfortunately, U.S. government employees cannot claim this foreign income exclusion.
• You failed to calculate the FEIE correctly – If you calculate your FEIE incorrectly you won’t get the correct amount excluded.
• You claimed the FEIE when you should have claimed the FTC – For example, if you’re retired abroad and you only have investment and passive income, you may have been better off claiming the FTC.
• You didn’t track your time properly – You must be vigilant about tracking your time if you want to pass the Bona Fide Residency or Physical Presence tests. Even being off by a few hours can mess up your qualifications.
• You had no active income for that year – If you’re living abroad off investment or passive income, you don’t qualify for the FEIE.
• You didn’t pay your U.S. self-employment taxes – You still have to pay self-employment taxes when you’re claiming the FEIE.

These are only a few of the most common issues and problems we come across. If you’re having difficulties or are a new American expat, it’s smart to leave your expat taxes to a specialist.

File your Foreign Earned Income Exclusion with H&R Block

Filing taxes while living and working abroad can be overwhelming and stressful. As an expat, your tax situation is very different and requires specialized expertise. Get started with H&R Block’s Expat Tax Services today.

The post What U.S. Expats Need to Know About The Foreign Earned Income Exclusion (FEIE) appeared first on H&R Block®.

Understanding each form is key to avoiding a problem with the IRS or the Financial Crimes Enforcement Network (FinCEN), so below we’ll dive into the FBAR and FATCA Form 8938 filing requirements for Americans abroad. If you’re still unsure which tax documents you need to file or if you haven’t filed taxes in a few years, it’s always best to trust these forms to an experienced advisor.

Need to file FinCEN Form 114 or FACTA Form 8938? Whether you want to file your expat taxes yourself with our online DIY expat tax service designed specifically for U.S. citizens abroad or file with an advisor, H&R Block is here to help.

FBAR vs. FATCA: Do you file FinCEN Form 114, Form 8938, or both? What’s the difference?

A common question Americans with assets in foreign bank accounts ask us is if they need to file an FBAR (the actual form you’d file is FinCEN Form 114) or FATCA Form 8938. The answer is: You could have to file one, none, or both. While they both exist to report financial assets to the government, they differ in a number of ways. For starters, they get sent to different places — you send your FBAR to the Financial Crimes Enforcement Network and send Form 8938 to the IRS.

We’ll dive more into the individual FBAR and FATCA filing requirements below, but here’s the quick who-what-where-when comparing the two:

FATCA filing requirements

The Foreign Account Tax Compliance Act (FATCA) is a part of the government’s efforts to combat offshore tax evasion. American expats of all income levels with foreign accounts and assets should know about it. FATCA requirements impact U.S taxpayers and overseas financial institutions:

• U.S. taxpayers with foreign accounts and assets may need to file Form 8938: Statement of Specified Foreign Financial Assets with their annual U.S. Income Tax Return
• FATCA reporting requirements for financial institutions overseas mandates them to disclose information about U.S. citizens who hold accounts overseas

Form 8938 is similar to the FBAR in many ways. However, it has higher reporting thresholds and requires you to disclose certain “non-account” assets such as:

• Business and trust ownership
• Certain contractual investments with foreign parties

FATCA reporting deadline

As Form 8938 is filed with your U.S. income tax return, due dates applicable to Form 1040 apply. Automatic extensions for expats living abroad or additional extensions to October 15 can provide more time to collect needed information from foreign financial institutions and determine your filing requirements.

You can always see up-to-date FATCA declaration deadlines on our expat tax deadlines page.

Who files? FATCA Form 8938 filing thresholds

Who is subject to FATCA reporting? The filing thresholds differ depending on where you lived during the tax year.

If you live within the U.S. the entire tax year, you must file Form 8938 if the value of your reportable foreign assets exceeds either of these levels:

• More than $50,000 (or $100,000 if married filing jointly) at the end of the year, or
• More than $75,000 (or $150,000 if married filing jointly) at any time in the year

Expats living abroad have an increased reporting threshold. You don’t need to complete this form unless your foreign assets exceed either:

• $200,000 (or $400,000 if married filing jointly) at the end of the year, or
• $300,000 (or $600,000 if married filing jointly) at any time during the year

FATCA financial institution reporting

Many foreign financial institutions must report their U.S. citizen and resident clients’ accounts and if you’re an expat who hasn’t been filing FATCA information, that could affect you as you might face penalties and interest.

Ready to file FACTA Form 8938? Whether you file your expat taxes yourself with our online DIY expat tax service designed specifically for U.S. citizens abroad or file with an advisor, H&R Block is here to help.

FBAR filing requirements

The Report of Foreign Bank and Financial Accounts, or “FBAR” serves many of the same purposes Form 8938 does, with a few differences. A main one is that the FBAR goes to the Financial Crimes and Enforcement Network of the U.S. Treasury Department instead of the IRS. The FBAR came into existence in the Bank Secrecy Act of 1970 (BSA). Its purpose was, and still is, to prevent U.S. citizens from hiding assets overseas with the intent to commit tax evasion and money laundering.

By law, you must file FinCEN Form 114 if both of the following are true:

• You’re a U.S. citizen, resident taxpayer or domestic business entity
• You own, control, or have signature authority over foreign bank and financial accounts with a combined value over $10,000

If you were thinking of writing it off or ignoring your reporting obligation, beware: The penalties for willfully not filing can be $100,000 or more.

FBAR filing deadline 2023

The FBAR is filed separately from your tax return and does not go to the IRS. The FBAR deadline is the same as your income tax deadline, with an automatic extension to October 15 available.

You can always see up-to-date FBAR reporting deadlines on our expat tax deadlines page.

Who files? FinCEN Form 114 filing thresholds

You may be required to file an FBAR if you’re A U.S. citizen or green card holder using personal or business foreign accounts for everyday activities

The reporting requirement covers many types of foreign accounts maintained outside of the United States, including:

• Bank accounts
• Securities accounts
• Certain foreign retirement arrangements

The FBAR filing requirement isn’t new, but expats often overlook it. Recent international enforcement efforts have raised awareness of the requirement. Don’t worry, though — your FBAR is only an informational document. No additional tax will be added. However, penalties can be levied if you don’t file or file late.

Need to file FinCEN Form 114 (FBAR)? H&R Block makes it simple to file your U.S. taxes and FBAR together.

Not sure if you should file FBAR vs. FATCA Form 8938? The experts at H&R Block are here to help.

Confused whether you should file an FBAR, FATCA declaration, or both? Don’t go it alone — your H&R Block tax advisor will know exactly what to do with your specific situation. Ready to file?

Get started with H&R Block’s Expat Tax Services today.

The post FBAR vs. FATCA: Filing Requirements for Americans Abroad appeared first on H&R Block®.

Below, we’ll explain the basics of what the FBAR is, which Americans in Australia need to file an FBAR, and how to file an FBAR from Australia

Ready to file? With H&R Block Expat Tax Services, you have two convenient, secure, online options to file your FBAR (FinCEN Form 114) from Australia alongside your U.S. taxes: On your own with our DIY online expat tax service or with help from an advisor.

Who in Australia must file FinCEN Form 114 (the FBAR)?

FinCEN Form 114 (the FBAR) is formerly called the Report of Foreign Bank and Financial Accounts. It exists to help the U.S. government be sure Americans in Australia (and elsewhere in the world) are being honest about their worldwide income and assets. If you qualify, you submit it yearly.

Who in Australia must file FinCEN Form 114? You must submit FinCEN Form 114 if you’re a U.S. citizen or Green Card holder and you’ve held a combined $10,000 or more in non-U.S. accounts at any one time in the tax year.

So, if you’re a U.S. citizen and have $5,000 in an Australian checking account and another $9,000 in an Australian pension you’d file an FBAR even though each account held under $10,000.

One question we hear from our clients in Australia is “Can I file an FBAR myself?” The answer is yes, even if you live in Australia you can still file an FBAR yourself online.

You can simply add on an FBAR to your expat tax package and get it all done in one go.

How to file an FBAR and expat taxes together while in Australia

If you need to file both your U.S. taxes and your FBAR from Australia, then choose to file your FBAR and expat taxes together. These are the FBAR instructions to file with your taxes:

1. Head over to our Ways to File page, choose to file taxes yourself or with an advisor, register online and complete your tax organizer.
   H&R Block makes it simple to file your expat taxes and FBAR together from Australia. After you choose to either file yourself or file with an advisor, you’ll be able to register an account. From there, you’ll complete your personal Tax Interview. This is where you provide information about your tax and financial situation, including information regarding your FBAR. After you have recorded all your information, you’ll get a personalized checklist of documents to upload according to your specific situation.
2. We’ll assign you the right advisor for your situation (if you choose to file with an advisor)
   If you choose to file with an advisor, we will match you with one well-versed in U.S./Australian expat taxes. Your advisor will review your documents and FBAR and begin your return and Australian FBAR submission.
3. We prepare your U.S. tax return and FBAR
   Even though you’re currently living in Australia, you can trust H&R Block Expat Tax Services for all the following:
   • Federal tax preparation and filing
   • State tax return preparation and filing
   • FBAR filing (Report of Foreign Bank and Financial Accounts)
   • Past-due FBAR and tax returns from prior years, including Streamlined Compliance filings
   • Free extension filing
   • H&R Block’s 100% Accuracy Guarantee
4. Pay for and review the FBAR and return.
   When your FBAR and tax return are completed, you’ll see your FBAR filing cost and be asked for payment via your client portal. Know that protecting your information is important to us — we maintain the physical, electronic and procedural safeguards to protect the information you submit to us.
   After you pay, your H&R Block Expat Tax Advisor can walk you through your FBAR and return, answer your questions and offer relevant tax savings tips for next year.
5. We file your return with the IRS and FBAR with FinCEN.
   Finally, we’ll file your completed return with the IRS and FBAR with FinCEN. After filing, your tax return and FBAR will be stored in your secure online account, where it will be safe and easy to access, whenever you need.

Ready to get started? Head on over to our Expat Tax page to begin.

FBAR (FinCEN 114) filing requirements and due date

Regardless if you live in Australia, your FBAR due date for the calendar year you’re reporting is the same as your U.S. tax filing deadline. You can always see up-to-date deadlines on our expat tax deadline page. If you’re required to file an FBAR, you must file one every year.

FBAR requirements are pretty detailed, so have these documents and information handy for a smooth submission process:

• Legal name on the foreign account(s)
• Type of account
• The name and address of the institution or other person with whom the account is maintained
• The maximum value (converted to USD using the end of year exchange rate) in each account during the FBAR reporting period
• The number and/or other designation of the account

FBAR filing cost

Filing your FBAR with H&R Block Expat Tax Services will help save you time and won’t break the bank. Starting at $49, you can file an FBAR as an add-on to your DIY tax preparation.

When you add FinCEN Form 114 to your assisted tax return, FBAR filing costs $99 and includes the same attention to detail and 100% Accuracy Guarantee as our Expat Tax Prep Services.

What if I live in Australia and I’ve never filed an FBAR before?

Yikes! If you live in Australia and it turns out you’ve accidentally skipped filing your FBAR in years past, don’t panic. Submitting a Foreign Bank Account Report isn’t exactly an everyday occurrence, and it’s easy to overlook if you weren’t aware of compliance laws.

If you live in Australia and were honestly unaware of your FBAR filing requirement, the time to act is now. The IRS and FinCEN have a few disclosure programs that offer amnesty to Americans who have made an honest mistake in overlooking their filing obligations, including Streamlined Filing Compliance Procedures.

Streamlined compliance procedures allow Americans in Australia (and elsewhere in the world) get caught up on back taxes and delinquent FBARs with amnesty in order to avoid the large penalties that come from willfully not filing — penalties that can range anywhere from a few hundred dollars to a few hundred thousand dollars for serious offenders. All in all, it makes financial sense to be sure you’re up to date on all your reporting requirements.

If this all seems overwhelming, don’t stress — we’ve got your back. When catching up on multiple years of FBAR filings, choose to file your taxes and FBAR with an advisor, and our international tax advisors can help you decide on the best course of action for your unique situation.

Unsure how to file an FBAR from Australia or if you need to? H&R Block’s Expat Tax Services has your back.

Need help filing your FBAR or expat taxes from Australia? Don’t stress — taxes for expats in Australia are complicated, but H&R Block Expat Tax Services has your back. Get started and file your U.S. taxes and FBAR together.

You may be interested in:

• Filing an FBAR from Canada
• Filing an FBAR from the UK
• Filing an FBAR from France
• Filing an FBAR from Germany
• Filing an FBAR from Japan

The post Guide to Filing an FBAR from Australia appeared first on H&R Block®.

Our expat Tax Advisors understand the ins and outs of taxes for expats in Australia, and you can rest easy knowing you’ve found the right expertise for your U.S. tax return. We make it simple to get your U.S. expat taxes done online so you can get back to living your best life abroad.

Yes, U.S. expats in Australia file taxes—both American and Australian

For starters, Americans and U.S. green card holders living in Australia should continue to file a U.S. tax return each year. However, filing taxes while overseas comes with new considerations and questions. “Do I have additional information to report to the IRS? How do my Australian financial accounts affect my filing? Do I report using the U.S. or Australian tax year? What options do I have to reduce my tax bill? Do U.S. expats pay Australian taxes?”

As a general rule of thumb, if you’re an American working or living in Australia you should assume you have a tax obligation in both the U.S. and Australia. But, don’t worry—there are a number of perks and tools you can use to ensure you’re not paying more than your fair share of taxes. These include exclusions and tax credits—like the Foreign Earned Income Exclusion and Foreign Tax Credit—as well as built-in rules outlined by the U.S./Australia tax treaty.

We’ve outlined a few considerations Americans living in Australia should keep in mind when filing taxes, so you know what affects the tax you pay, and which forms you need to file. Of course, tax rules for U.S. expats go beyond what we’ve listed below.

Ready to file your U.S./Australia taxes? Whether you file your expat taxes yourself with our online DIY expat tax service designed specifically for U.S. citizens abroad or file with an advisor, H&R Block is here to help you get it done.

How U.S. taxes work for American expats in Australia

Working in Australia can affect your taxes even if you don’t live there for very long. For example, if you earn income while on a short-term assignment, you’ll need to report that income on your U.S. taxes. As you establish deeper financial roots in Australia, you’ll have more considerations for your American tax filing.

You may need to report your foreign financial accounts and assets. Generally, U.S. taxpayers in Australia with more than $10,000 in foreign bank or financial accounts (including superannuation accounts) are subject to FBAR filing and reporting requirements. You may also be subject to FATCA reporting requirements if you have assets valued at $200,000 and higher.

You can lower your U.S. bill and avoid dual taxation with certain tax strategies. Expats may take advantage of one of two options, detailed below, to lower their taxes.

1. The Foreign Earned Income Exclusion allows you to exclude your wages from your U.S. taxes. This option is available to those who meet certain time-based residency requirements.
2. The Foreign Tax Credit lets you claim a credit for income taxes paid to a foreign government.

Due to the higher Australian tax rates, it’s generally more favorable for Americans living in Australia to use the foreign tax credit. However, your H&R block tax advisor can confirm the best path for you.

I’m retiring to Australia. What do I need to know about U.S. taxes?

If retiring abroad in the countryside is your long-term goal, you should first understand how taxes work when retiring abroad:

• Even if you retire abroad you still may have to file a U.S. tax return
• You’ll still have to report money in any foreign financial accounts on your FBAR if you meet the requirements
• Your Australian pension contributions aren’t tax free for your U.S. taxes. While a superannuation fund provides tax benefits on your Australian taxes, it won’t be treated the same on the U.S. side.
• Depending on your personal circumstances, your account may be considered a foreign grantor trust or employee benefit trust. That in turn affects what you’re taxed on and which U.S. tax forms you need to file.

You can rely on the expertise of our Expat Tax Advisors to help you accurately complete your tax filing.

The U.S./Australia tax treaty summary

The U.S. has a tax treaty with Australia to define specific tax rules that apply between the countries. The main provisions cover how to prevent double-taxation and guides to income taxes, capital gains taxes, and corporate tax. However, U.S. tax treaties have what’s called a Saving Clause, which effectively lets the U.S. tax its citizens as if the treaty never existed.

One last provision you should be aware of is that the Australian government shares tax information on Americans living in Australia with the IRS. This includes tax returns as well as bank account info— which means if you fail to file your FBAR or FATCA reports (or if you file them incorrectly) you may be hit with fines and penalties. That’s why it’s crucial you pick a U.S. tax preparer that understands the ins and outs of expat taxes—like the ones here at H&R Block.

Should you want to take advantage of tax treaty benefits (and you’re required to file paperwork regarding them), you’d file Form 8833.

What Americans living in Australia should know about Australian taxes

If you’re an American working in Australia, you may also have to file Australian taxes, which are based on your residency and domicile status. Where Australian taxes are concerned, your domicile is generally where you have your permanent home and your residency is where you spend most of your time. You can be a resident in more than one country, but you can only have one domicile.

You qualify as an Australian resident if you’re domiciled in Australia or you’ve spent more than half of the tax year there without a permanent home elsewhere. Additionally, you may be a resident if you’re an “eligible employee” of a superannuation fund.

How does being a resident affect your taxes?

• For the 2023/2024 tax year, Australian residents are taxed on all income over $18,200, regardless of where it’s earned.
• Nonresidents are taxed on all Australian source income with some exceptions.

The income tax rates are different for residents vs. nonresidents. Similar to taxes in the U.S., the percentage of tax that you pay increases as your income increases. However, the rate ranges are steeper for nonresidents as shown below.

Resident Tax Rates 2023-2024

Non-Resident Tax Rates 2023-2024

Resident shareholders in foreign companies can get credits on distributions. If you own shares in an Australian company and receive a grossed-up dividend of profits, the company has already paid taxes on a portion of those dividends (currently the rate is 30%). Australian residents may receive a rebate — called a franking or imputation credit —on the tax that has already been paid and distributed by the company. Depending on your Australian tax bracket, you may be able to receive the full credit or a portion of the credit.

The tax year is different than in the United States. The Australian tax year starts on July 1 each year and ends the next year on June 30. You must lodge (file) your taxes by October 31.

As your U.S. tax documentation and reporting generally follows a calendar year, you may need to combine your Australian pay stubs and other payment records to reflect a full U.S. tax year.

How to file a U.S. tax return from Australia

Need to file a U.S. tax return from Australia? We’ve got you covered. Here’s how to file your U.S. expat taxes online:

1. Head on over to our Ways to File page
2. Pick your journey—in the driver’s seat with our online DIY tool or letting a Tax Advisor take the wheel.
3. Once you’re through your chosen journey, you review your return and pay
4. We file your return with the IRS
5. You sit back knowing your taxes were done right

File U.S. taxes today with H&R Block’s U.S. expat tax services

Our highly trained experts have helped thousands of Americans moving to Australia as they file their U.S. expat and Australian taxes in Australia. You can trust our expertise and guidance to help you determine the best tax strategies for you.

Start your U.S. taxes for free today!

The post Guide to U.S. Expat Taxes in Australia appeared first on H&R Block®.

But there’s good news! the IRS Streamlined Filing Compliance Procedures are there to help you get caught up — penalty free (as long as you qualify).

If you’re an American living abroad and haven’t filed your annual U.S. income tax returns for several years — or maybe ever — since moving abroad, H&R Block Expat Tax Services can help. Understanding filing requirements in the U.S. and your host country can be overwhelming, but we’ll get you back on track.

What to do if you’re a U.S. citizen abroad and have never filed U.S. taxes while overseas

It’s common for U.S. expats to think they only have to file taxes for the country they live in now, causing them to accidentally overlook their U.S. tax obligations. In the face of honest mistakes, the IRS has historically shown lenience. However, you could face serious penalties for things like failure to file your foreign bank account reports (FBAR).

If you’re a U.S. citizen abroad and have never filed taxes while you’ve lived overseas, don’t panic — we’re here to help you through your options. You’ll have to get caught up on your U.S. expat taxes, and you’ll also have to get caught up on your FBAR.

You can do this with the IRS’ Streamlined Filing Compliance Procedures and Delinquent FBAR and Information Report Procedures. It can be a bit confusing, so if you’re unsure about your responsibilities or how to file, let us do the heavy lifting for you with our Expat Tax Preparation Services.

Catch up on past taxes with Streamlined Foreign Offshore Procedures

Offshore Streamlined Filing Compliance Procedures are an option for U.S. taxpayers abroad who need to get caught up on expat taxes. The program supplemented the now-defunct Offshore Voluntary Disclosure Program and helps U.S. expats who were unaware of their obligations catch up with prior year filings while minimizing penalties.

To qualify for the Offshore Streamlined Filing Compliance Procedures, you must:

1. Have lived in a foreign country for at least 330 days during one of the last three years and not maintained a U.S. abode.
2. Confirm that your failure to file U.S. tax returns and FBAR was due to an honest misunderstanding of your responsibilities.

If you do qualify for Streamlined Filing Compliance Procedures, you will need to:

1. File income tax returns for the prior three delinquent tax years.
2. File an FBAR (FinCEN Form 114) for the prior six tax years.
3. Complete a statement of explanation detailing why your tax returns and FBAR weren’t filed.
4. Pay the tax and interest due for the last three years.

If you don’t qualify for Streamlined Filing Compliance Procedures:

Don’t qualify for streamlined filing? You still have options to try and get caught up with minimal penalties:

• IRS-Criminal Investigation Voluntary Disclosure Program
• Delinquent international information return submission procedures

If it sounds like a little too much for you, we’re here to take over. Simply create an account and upload your documents to your tax portal. Our seasoned Tax Advisors will look over your documents and help you with next steps.

Avoid FBAR penalties with Delinquent FBAR and Information Report Procedures

Not only do you have to file U.S. taxes each year, but you may also have to report money in foreign banks with a Foreign Bank Account Report (FBAR). The actual form you’d file is FinCEN Form 114, and you’ll have to file it if the combined balance of all your foreign accounts totals more than $10,000 at any point during the calendar year.

If you’ve been filing your tax returns annually and reporting your income but were unaware of your foreign bank account reporting requirements and the associated FBAR penalties, or other informational reports, you might be able to claim amnesty with a different procedure.

Delinquent FBAR or International Information Return Procedures allow you to file and amend your FBAR and return to include omitted information. A detailed explanation is required with each report to make sure your failure to file was an honest mistake.

Need help with Streamlined Filing Procedures or a delinquent FBAR? Start now with H&R Block’s Expat Tax Prep Services

If you’re a U.S. taxpayer, and you honestly made the mistake of not fulfilling your U.S. tax and FBAR duties, H&R Block U.S. Expat Tax Services can help. While your process does require a few more steps, we’ll help you tackle them all. Want help? Get started now and we’ll take over from there.

Warning! The programs listed above are for U.S. taxpayers who have honestly overlooked their past U.S. tax responsibilities. Severe civil and criminal disciplinary action and penalties, such as FBAR penalties, can be assessed against taxpayers who have willfully avoided U.S. tax. H&R Block does not provide legal services. If you are concerned that your failure to file was willful, consult an attorney.

The post The Basics of Streamlined Filing Compliance Procedures and Delinquent FBAR Penalties appeared first on H&R Block®.

However, if you’re living abroad, the rules for expat tax filing and deadlines are a little different.

Expat tax deadlines for 2024

Typically, expat tax deadlines are consistent each year, with the exception of 2020 and the Coronavirus extensions. Review coronavirus (COVID-19) tax impacts for U.S. expats living abroad.

The U.S. reports on a calendar-year basis, meaning you’re taxed on income on a January 1 – December 31 basis. Your expat tax deadlines are as follows:

Do I have to pay U.S. taxes if I live abroad?

Expats are required to file U.S. tax returns each year, but sometimes tax benefits (like the Foreign Earned Income Exclusion and Foreign Tax Credit) available to them result in no U.S. taxes owed. However, if any of the following situations apply to you, it’s possible that you may still owe U.S. taxes.

• You live and work in a country with lower tax rates than the U.S.
• You’re not taxed on your foreign investments, or
• You still receive income from U.S. sources

Estimated tax payment deadlines for U.S. citizens overseas

If you’re living outside the U.S. and usually owe U.S. taxes, you may need to make quarterly estimated tax payments to the IRS. An expat tax expert can help you figure those quarterly payments so you can avoid end-of-year penalties.

Quarterly Income and Expat Self Employment Tax Deadlines

Tax extensions for expats

Your U.S. tax information is still reported on a calendar-year basis even if you are living in a country that taxes on a fiscal year rather than a calendar year basis (the United Kingdom and Australia, for example).

If you’re worried about getting your taxes done by the deadline, requesting an extension can give you more time to gather information before the end of the tax year of the country where you live. H&R Block’s Expat Tax Services is here to help you with tax extensions — simply choose to file with an Expat Tax Advisor and they’ll handle your paperwork for you.

FBAR filing deadline

The FBAR filing deadline is the due date of your income tax return, though FinCEN has provided a regulatory extension to October 15th for most filers.

Visit the FBAR overview page to learn more.

Get your expat taxes done on time with H&R Block’s Expat Tax Services

No matter if you’re early, on-time, or behind, we’ve got a tax solution for you — whether you want to be in the driver’s seat with our DIY online expat tax service designed for U.S. citizens abroad or prefer to let one of our experienced tax advisors take the wheel.

Ready to get the tax season over with? Start the process with virtual Expat Tax Preparation from H&R Block today!

The post 2024 Tax Deadlines for Expats appeared first on H&R Block®.