Key Tax Deadline: June 16, 2025, for U.S. Expats
If you’re a U.S. citizen or resident alien living abroad, you must file your 2024 federal income tax return by June 16, 2025. This deadline applies to all U.S. taxpayers residing outside the country, including those with dual citizenship.
Missing this deadline can lead to penalties and interest on unpaid taxes. However, if you need more time, you may qualify for an extension until October 15, 2025. Read on for key details about tax filing extensions, foreign income exclusions, and financial account reporting.
Automatic Two-Month Tax Extension for U.S. Expats
The IRS grants an automatic two-month extension to taxpayers abroad, moving the deadline from April 15, 2025, to June 16, 2025 (since June 15 falls on a Sunday). However, interest on unpaid taxes will start accruing from April 15, 2025, at a 7% annual rate, compounded daily.
Who Qualifies for the June 16 Extension?
To qualify for this automatic extension, you must meet one of the following criteria on the regular tax due date:
- You live and work outside the U.S. and Puerto Rico, with a primary place of business abroad.
- You are serving in the U.S. military on active duty outside the U.S. and Puerto Rico.
To claim this extension, attach a statement to your tax return explaining your eligibility.
Requesting Additional Extensions Beyond June 16
If you need more time, you can request an extension until October 15, 2025. Keep in mind that this is an extension to file, not to pay.
How to Request an Extension
- Electronically: Use IRS Free File or IRS Direct Pay to request an extension online.
- By Mail: Submit Form 4868 (Application for Automatic Extension of Time to File).
- For Businesses: Businesses requiring an extension must file Form 7004 for a six-month extension.
Special Tax Extensions for U.S. Military in Combat Zones
Military members serving in combat zones qualify for an automatic 180-day extension to file and pay their taxes. Spouses may also be eligible for these extensions.
For more information, consult IRS Publication 3, Armed Forces’ Tax Guide.
Tax Relief for Individuals in Israel, Gaza, and the West Bank
Taxpayers affected by the October 7, 2023, terrorist attacks in Israel, Gaza, and the West Bank have until September 30, 2025, to file and pay taxes. This extension applies to tax returns and payments originally due between October 7, 2023, and September 30, 2025.
Why U.S. Expats Should File Taxes
U.S. expats may qualify for valuable tax benefits, but they must file a U.S. tax return to claim them. Some key benefits include:
- Foreign Earned Income Exclusion (FEIE) – Exclude up to $120,000 of foreign-earned income (2023 limit, adjusted annually).
- Foreign Tax Credit (FTC) – Offset U.S. tax liability with taxes paid to foreign governments.
- Standard Deductions & Other Credits – Available only when a tax return is filed.
Read also: Celebrating 50 Years of the Earned Income Tax Credit (EITC)
For detailed expat tax guidance, refer to IRS Publication 54, Tax Guide for U.S. Citizens and Resident Aliens Abroad.
Foreign Financial Account & Asset Reporting for Expats
U.S. expats must report worldwide income and foreign financial accounts. This includes:
- Schedule B (Interest and Ordinary Dividends): Required for taxpayers with foreign bank accounts.
- Form 8938 (Statement of Specified Foreign Financial Assets): Required if total foreign assets exceed IRS thresholds.
- FBAR (Report of Foreign Bank and Financial Accounts – FinCEN Form 114): Required if the total balance of foreign accounts exceeds $10,000 at any time in 2024.
- FBAR Deadline: April 15, 2025 (automatic extension until October 15, 2025).
- Filing Method: Electronically via the Bank Secrecy Act E-Filing System.
Currency Reporting & Tax Payment Methods
- All foreign income must be reported in U.S. dollars.
- IRS requires the use of the December 31 exchange rate for foreign currency conversion.
- Tax payments must be made in U.S. dollars using IRS Direct Pay, EFTPS, credit/debit cards, or digital wallets.
Expatriation & Tax Filing Requirements
If you renounced U.S. citizenship or ceased to be a U.S. permanent resident in 2024, you must:
- File a dual-status alien tax return.
- Submit Form 8854 (Initial and Annual Expatriation Statement) by the tax deadline.
Source: IRS
