Updated Tax Extension Deadline for US Citizens Abroad

The IRS recently reported the guidelines and instructions on when and how to file if you were living or working abroad. Here is an outline of what you need to know.

Qualifying for the June 17 Extension

Taxpayers living and working outside the U.S. have until Monday, June 17, 2024 to file their 2023 federal income tax returns. Taxpayers in Israel, Gaza and the West Bank have until Oct. 7, 2024, to file

If a taxpayer uses a calendar year, their regular due date is April 15, and their automatic extended due date is June 15, but their due date is delayed until the next business day, June 17.

File to Claim Benefits

Many taxpayers living outside the U.S. qualify for tax benefits, but they are available only if a U.S. return is filed. The IRS encourages families to check out expanded tax benefits and claim them if they qualify.

Reporting is Required for Foreign Accounts and Assets

Federal law requires U.S. citizens and resident aliens to report worldwide income, including income from foreign trusts and foreign bank and securities accounts. Some taxpayers may also have to report specified foreign financial assets on Form 8938.

Reporting Foreign Financial Accounts to Treasury

Foreign financial accounts must be reported by electronically filing Form 114 with the Treasury Department’s Financial Crimes Enforcement Network (FinCEN). The deadline for filing the annual FBAR is April 15, 2024, but there is an automatic extension until Oct. 15, 2024.

Report in U.S. Dollars

The IRS accepts any posted exchange rate that is used consistently for Form 114 and Form 8938.

Making Tax Payments Abroad

Taxpayers can pay their U.S. tax obligation electronically via their IRS Online Account, IRS Direct Pay or the Electronic Federal Tax Payment System.

Reporting for Expatriates

Taxpayers who relinquish their U.S. citizenship must file a dual-status alien tax return and attach Form 8854, Initial and Annual Expatriation Statement, with the IRS by the due date.

Extensions Beyond June 17

Taxpayers who can’t meet the June 17 due date can request an automatic extension to Oct. 15 by filing Form 4868. Businesses must file Form 7004.

Extensions for Military Personnel

Military members and their spouses may qualify for an additional extension of at least 180 days to file and pay taxes

 

---