IRS reminds US taxpayers abroad: File 2024 tax returns by June 16, 2025
The Internal Revenue Service (IRS) has announced that US citizens and resident aliens living and working abroad have until Monday, June 16, 2025, to file their 2024 federal income tax returns and pay any taxes owed.
This automatic two-month extension from the standard April 15 deadline applies to eligible taxpayers without the need for a formal request.
Eligibility for the automatic extension
Taxpayers qualify for this automatic extension if, on the regular due date of their tax return, they meet one of the following criteria:
- Their primary residence and main place of business or duty station are outside the United States and Puerto Rico.
- They are serving in the military or naval service on duty outside the United States and Puerto Rico.
To benefit from this extension, taxpayers should attach a statement to their tax return explaining which of these situations applies to them.
Interest on taxes owed
It's important to note that while the filing deadline is extended, any taxes owed are still due by the original April 15 deadline.
Taxes not paid by this date will accrue interest from April 15 until the date of payment. As of the 2024 tax year, the interest rate is 7% per year, compounded daily.
Additional extension options
If taxpayers cannot file their return by the June 16 deadline, they can request an additional extension until October 15, 2025, by filing Form 4868, Application for Automatic Extension of Time to File US Individual Income Tax Return.
This extension provides more time to file but does not extend the time to pay any taxes due.
Special considerations
- Combat zone extensions: Military personnel serving in combat zones may be eligible for additional extensions of at least 180 days to file and pay taxes.
- Tax benefits: Filing a US tax return is necessary to claim benefits such as the Foreign Earned Income Exclusion and the Foreign Tax Credit, which can significantly reduce taxable income.
Reporting foreign accounts and assets
US citizens and resident aliens must report worldwide income, including income from foreign trusts and foreign bank and securities accounts.
Taxpayers with foreign accounts may need to complete Schedule B (Form 1040), Interest and Ordinary Dividends, and Form 8938, Statement of Specified Foreign Financial Assets, if the aggregate value of specified foreign financial assets exceeds certain thresholds.
Additionally, taxpayers with an interest in or signature authority over foreign financial accounts with an aggregate value exceeding $10,000 at any time during the calendar year must file a Report of Foreign Bank and Financial Accounts (FBAR) electronically through the Financial Crimes Enforcement Network (FinCEN).
The FBAR deadline is April 15, 2025, with an automatic extension to October 15, 2025, if needed.
Action steps for taxpayers abroad
- Prepare necessary documentation: Gather all income statements, foreign account information, and records of taxes paid to foreign governments.
- File electronically: The IRS encourages electronic filing for accuracy and faster processing.
- Pay any taxes owed promptly: To avoid accruing interest, ensure any taxes owed are paid by April 15, 2025.
For personalized guidance, consider consulting with a tax professional experienced in expatriate tax matters to ensure compliance with US tax obligations and to maximize available tax benefits.
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