U.S. Tax Filing Requirements for Citizens and Green Card Holders Living Abroad

If you’re a U.S. citizen or green card holder, you must file U.S. tax returns and report your worldwide income, even while living outside the country. The U.S. uses a citizenship-based taxation system, meaning your tax responsibilities are tied to your citizenship, not where you live.

You’re generally required to file a U.S. tax return if your gross income meets the IRS filing threshold for your age and filing status — even if all your income is earned overseas or you already pay taxes in another country.

What to Know

1. Filing thresholds: For the 2025 tax year, single filers under age 65 must file if their income is $15,000 or more. Married couples filing jointly must file if they earn $30,000 or more.

2. Worldwide income: All income — including salary, self-employment earnings, interest, dividends, and rental income — must be reported to the IRS.

3. Exclusions and credits: You may be able to reduce or eliminate double taxation through the Foreign Earned Income Exclusion (FEIE) (up to $130,000 in 2025) or the Foreign Tax Credit (FTC) for taxes paid to another country. These benefits aren’t automatic — you must claim them when filing.

4. Self-employment tax: If you’re self-employed and earn $400 or more, you must file and pay U.S. self-employment tax, even if you live abroad.

5. Filing deadlines: Americans living abroad automatically receive a two-month extension (to June 15) to file their tax return. However, any taxes owed are still due by April 15 to avoid interest and penalties.

6. Foreign account reporting: You may also need to file:

   1. FBAR (FinCEN Form 114) – if the total value of your foreign accounts exceeds $10,000 at any time during the year.

   2. Form 8938 – if your foreign assets exceed certain IRS thresholds.

State Tax Considerations

Whether you must file state taxes depends on your last state of residence. Some states — like California, New Mexico, South Carolina, and Virginia — have strict rules and may continue to tax you until you officially cut residency ties (e.g., by changing your mailing address, voter registration, and driver’s license).

In Summary

U.S. citizens and green card holders living abroad must still file a U.S. tax return each year if they meet the income threshold. Reporting is required even if you qualify for exclusions or credits that reduce your U.S. tax bill.

Staying compliant with both IRS and foreign reporting rules helps avoid penalties and keeps your finances in good standing while abroad.