{"id":28437,"date":"2023-04-10T08:00:00","date_gmt":"2023-04-10T13:00:00","guid":{"rendered":"https:\/\/taxprocenter.proconnect.intuit.com\/?p=28437"},"modified":"2023-04-07T09:10:17","modified_gmt":"2023-04-07T14:10:17","slug":"reporting-foreign-income-and-filing-expat-returns","status":"publish","type":"post","link":"https:\/\/accountants.intuit.com\/taxprocenter\/tax-law-and-news\/reporting-foreign-income-and-filing-expat-returns\/","title":{"rendered":"Reporting foreign income and filing expat returns"},"content":{"rendered":"\n

Do you have clients living and working abroad? U.S. citizen and resident aliens living abroad should know their tax obligations. Their worldwide income\u2014including wages, unearned income, and tips\u2014is subject to U.S. income tax, regardless of where they live or where they earn their income. They also have the same income tax filing requirements as U.S. citizens or resident aliens living in the United States.<\/p>\n\n\n\n

An income tax filing requirement applies even if a taxpayer qualifies for tax benefits such as the Foreign Earned Income Exclusion<\/a> or the Foreign Tax Credit<\/a>, which reduce or eliminate U.S. tax liability. These tax benefits are available only if an eligible taxpayer files a U.S. income tax return.<\/p>\n\n\n\n

Taxpayers living outside of the U.S. and Puerto Rico have an automatic extension to file\u2014but not to pay<\/strong><\/p>\n\n\n\n

A taxpayer has an automatic two-month extension to June 15, 2023, if both their tax home and abode are outside the United States and Puerto Rico. Even with an extension, a taxpayer will have to pay interest on any tax not paid by the regular due date of April 18, 2023.<\/p>\n\n\n\n

Those serving in the military outside the United States and Puerto Rico on the regular due date of their tax return also qualify for the extension to June 15, 2023. Taxpayers should attach a statement to their tax return if one of these two situations applies. More information is in the instructions for Form 1040 and Form 1040-SR, Publication 54<\/a>, Tax Guide for U.S. Citizens and Resident Aliens Abroad<\/em>, and Publication 519<\/a>, U.S Tax Guide for Aliens<\/em>.<\/p>\n\n\n\n

Reporting requirement for foreign accounts and assets<\/strong><\/p>\n\n\n\n

Federal law requires U.S. citizens and resident aliens to report their worldwide income, including income from foreign trusts, and foreign bank and other financial accounts.<\/p>\n\n\n\n