Before everyone gets into Xmas mood and forget about their tax obligations, we still have some time to discuss who needs to file a U.S. tax return! The U.S. expat taxes aren’t easy matter but we try to make it easy to understand even if you never dealt with it before.

Check out our infographic, which explains who has to file U.S. tax return if you are an American living overseas.

Filing U.S. tax return as American abroad - tax infographics

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While many Americans abroad wonder if they have to pay US taxes on foreign income, the real question is about filing tax return itself. Many of US citizens living overseas do not owe any taxes to the IRS. However, it doesn’t mean they don’t have to report their income on Form 1040. Majority of US expats confuse the filing threshold with Foreign Earned Income Exclusion. The latter one doesn’t determine your filing liabilities. It is there to exclude all or part of your foreign-source wages and self-employment income from U.S. federal income tax. Yet you need to file a federal tax return and form 2555 to use Foreign Earned Income Exclusion.