US Expat Tax Filing Guide 2025

Complete guide to filing your US tax return from abroad. Covers all deadlines, which forms to file, how to claim exclusions and credits, and the most common mistakes US expats make.

Your situation

Filing status

Do you have foreign earned income?

Do you have foreign financial accounts?

Do you have foreign pension/retirement plan?

Do you have foreign business/company interests?

Did you pay income tax to a foreign government?

2025 Filing deadlines

Standard US deadlineApril 15, 2025

Automatic expat extension (abroad on April 15)June 15, 2025

Extension request (Form 4868)October 15, 2025

FBAR (FinCEN 114) — auto-extension to Oct if missedApril 15 / Oct 15, 2025

Physical Presence Test — 12 consecutive monthsMust be met at filing

Forms you need to file

Step-by-step filing process

Gather income documents

Collect all income statements: W-2 (if any), foreign employer payslips, bank interest statements, dividend statements, rental income records. Convert all foreign currency to USD using IRS average annual exchange rate (see irs.gov/individuals/international).

Determine physical presence vs bona fide residence

To claim FEIE, you must pass EITHER the Physical Presence Test (330 full days in 12 months outside US) OR the Bona Fide Residence Test (full tax year resident of foreign country). Keep a day-count record.

Choose FEIE or FTC (or both)

Compare using our FTC vs FEIE calculator. High-tax countries: FTC usually better. Low/no-tax: FEIE usually better. You cannot use both for the same income but can use FTC for passive income with FEIE for earned income.

Complete required foreign information forms

File FBAR (FinCEN 114) separately at bsaefiling.fincen.treas.gov. File Form 8938 if FATCA thresholds met. Form 8621 for each PFIC. Form 5471 if you own/control a foreign corporation.

Calculate self-employment tax

If self-employed: SE tax applies regardless of FEIE. Complete Schedule SE. SE tax = 15.3% on 92.35% of net SE income. Deduct 50% of SE tax from gross income.

Review for treaties and credits

Check if a US tax treaty with your country of residence provides any relief (state pension exemption, pension income exemption, reduced withholding on dividends/interest). Treaties must be specifically claimed on your return.

E-file or mail

E-file preferred. Free options: IRS Free File Alliance (income limits apply), expatriate-specific services (Greenback, Bright!Tax, MyExpatTaxes). Paper filing: Internal Revenue Service, Austin, TX 73301-0215.

Top 8 expat filing mistakes

1. Not filing because you live abroadUS citizens must file regardless of where they live — no foreign residence exemption exists from the filing requirement.

2. Forgetting FBAR (FinCEN 114)FBAR is separate from your tax return, filed at a different website, with severe penalties. Many expats only discover this years later.

3. Thinking FEIE eliminates all US taxSE tax still applies. Alternative Minimum Tax can kick in. State taxes may still apply.

4. Not reporting foreign pension contributionsForeign employer pension contributions may be taxable US income unless a treaty exemption applies.

5. Assuming foreign funds are safe to holdMost foreign mutual funds and ETFs are PFICs — extremely punitive tax treatment applies without elections.

6. Missing the FEIE election on timeFEIE must be claimed on a timely return (including extensions). Missing this can forfeit it for the year.

7. Not reporting foreign rental incomeRental income from foreign properties is fully taxable. Foreign expenses are deductible. Many expat landlords forget to report.

8. Claiming the housing exclusion incorrectlyThe foreign housing exclusion/deduction has specific limits and requires employer-paid housing costs to be separated from salary.