Question 1

Do US expats still have to pay US taxes?

Accepted Answer

Yes, US citizens and permanent residents must file US federal tax returns regardless of where they live. However, the Foreign Earned Income Exclusion (FEIE) allows you to exclude up to $126,500 (2024) of foreign-earned income. The Foreign Tax Credit (FTC) can offset US taxes with taxes paid to foreign governments, preventing double taxation.

Question 2

What is the Foreign Earned Income Exclusion (FEIE)?

Accepted Answer

The FEIE allows qualifying US expats to exclude up to $126,500 (2024) of foreign-earned income from US taxation. To qualify, you must have a tax home in a foreign country and meet either the Physical Presence Test (330 days abroad in 12 months) or the Bona Fide Residence Test (established resident of a foreign country for a full tax year).

Question 3

What is the US tax filing deadline for expats?

Accepted Answer

US expats receive an automatic 2-month extension, making their deadline June 15. You can request an additional extension to October 15 using Form 4868. However, any taxes owed are still due by April 15 — the extension only applies to filing, not payment. Interest accrues on unpaid balances from April 15.

Question 4

Can I claim the Foreign Tax Credit and FEIE at the same time?

Accepted Answer

You can use both, but not on the same income. You can claim the FEIE to exclude earned income up to the limit, then use the Foreign Tax Credit on income above the exclusion amount or on other types of income like investment income. A tax professional specializing in expat taxes can help optimize your strategy.

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