With so much going on in our lives, it’s easy to get distracted and forget to pay attention to important things – like filing taxes on time.

Missing your deadline can result in some dire consequences, so we decided to help you out! Here’s a list of all the important dates and other useful information to help US expats stay on track with their taxes in 2023.

US Expat Tax Return deadline for 2023

Residents of the United States are required to file a Federal Tax Return by April 18, 2023. One perk of being a US expat is that you’re given an extended deadline to file your tax return. That means that all US citizens living abroad will be granted an automatic two-month extension to June 15, 2023.

In case you’re worried about getting your taxes done by June 15, you can request an additional 6-months extension. Contact us today if you think you require more time to file your U.S. Expat Tax Return, and we’ll file an extension for you free of charge.

Due Dates for American Expats

Typically, expat tax deadlines were consistent each year. With changing rules and requirements in the last two tax years, many taxpayers are struggling to stay informed. Here are some key dates you need to remember:

January 2023 – Tax season begin

This is when IRS starts processing 2022 tax returns. If you’re eager to file your tax return right away, you can do it in January or early February.

April 18 – Filing Deadline

The last day to file federal individual income tax returns for those living in the U.S. and pay your income taxes in the U.S.

US expats are required to pay any taxes owed by the regular deadline of April 18th, even if they are granted an extension to file their tax returns. If taxes are not paid by the regular deadline, interest and penalties may be assessed on the unpaid balance.

June 15 – Filing Deadline for Expats

Individual tax return due date for US citizens living abroad. As a US expat, you are allowed this automatic 2-month extension to file your tax return.

October 15 – Filing deadline with extension

The final deadline to file for individuals who requested an extension.

December 15 – Filing Deadline with additional extension

If you got your October extension but still need more time, you can qualify for an additional two-month extension.

If any of these dates fall on a weekend or a holiday, then the due date is the next weekday.

Tax Filing Extensions

Need some extra time to wrap up your individual tax return? If you’re concerned about meeting the tax filing deadlines – no need to panic. There are several ways to further extend your filing deadline and avoid any financial penalties.

Automatic Two-Month Extension

The automatic two-month extension for US expats is a provision that allows individuals who are living outside of the United States to file their tax returns by June 15th, rather than the regular deadline of April 15th. This extension is automatic, which means that US expats do not need to take any special action to request it.

However, it is important to note that the automatic two-month extension is only for filing tax returns. It does not extend the deadline for paying any taxes owed. US expats are still required to pay any taxes owed by the regular deadline of April 15th, even if they are granted an extension to file their tax returns.

Additional 6-Month Extension

To request the additional six-month extension, US expats must file Form 4868, Application for Automatic Extension of Time To File U.S. Individual Income Tax Return.

If you are a US expat and need more time to file your tax return, we are here to help. Simply contact us and we will be happy to file the additional six-month extension on your behalf, free of charge.

Don’t let the deadline stress you out – let us handle the paperwork so you can focus on other important matters. So, don’t hesitate to reach out to us for assistance with your tax extension needs.

Additional Extension to December

If you got your extensions, but still need more time to collect expense and income documents –  there is yet another option. Americans overseas can request an additional discretionary two-month extension from the IRS. The final extension deadline to file a tax return for expats who requested this additional extension is December 15, 2023.

Remember, this final extension is only available for people who were already granted October 15 extension. Also, there is no way to send an online email or message to the IRS requesting an additional extension. Instead, you’ll need to go through the traditional route of sending them an actual physical letter. Here are some important points to add to your letter:

  • Your personal information and Social Security Number
  • A list of the exact documents and the tax period you need to get an extension for.
  • A valid reason why the IRS should allow you to file for an extension until December 15 instead of October 15

Self Employment Tax Deadlines

If you’re self-employed as a freelancer, contractor, or home-based entrepreneur, another thing to keep in mind is the self-employment tax on foreign income. If you expect to owe $1,000 or more in US taxes when filing your return (that means earning roughly $5,000 in self-employment income), you may need to make quarterly estimated tax payments to the IRS. These are the due dates for your quarterly payments:

  • April 18, 2023
  • June 15, 2023
  • September 15, 2023
  • January 15, 2024

FBAR Deadline 2023

U.S. citizens living in the U.S. need to file their FBAR by April 18th, 2023. U.S. expats get an automatic 6-month extension to October 15, 2023.

If you are an American expat with foreign financial accounts, then you’ll want to get familiar with the Foreign Bank Account Report (FBAR). This report is used to disclose any foreign financial accounts that you have with a balance of over $10,000 at any point during the tax year.

Filing the FBAR is an important step in compliance with tax laws, and failure to do so can result in significant fines and penalties.

FATCA Report Deadline

Another important piece of paperwork for Americans living overseas is FATCA (IRS From 8938), also known as the Foreign Account Tax Compliance Act. Form 8938 and the aforementioned FBAR both aim to uncover tax evaders who use foreign bank accounts to hide their assets and income overseas to avoid taxation. These foreign accounts could include banks, mutual funds, hedge funds, some insurance policies etc.

It’s necessary to file form 8938 if you own non-US financial assets that are exceeding certain thresholds. Your specific threshold is determined based on a few factors, including your filing status and whether or not you qualify as a bona fide resident of a foreign country. Taxpayers living overseas won’t need to file form 8938 unless the aggregate value of their financial foreign assets exceeded $200,000 at any point during the year.

Since form 8938 needs to be attached to your individual income tax return, the deadline for submitting both of them is the same. If you are required to file form 8938, you will need to submit it before April 18, 2023. As with individual tax returns, expats get an automatic extension to June 15, 2023, and can request a further extension to October 15, 2023.

Changes to 2023 income tax brackets and standard deduction

The IRS changes the tax brackets and the standard deduction each year due to changes in the cost of living. Having in mind everything that’s happening in the world right now, this year’s changes will be more significant than usual, and they will reflect in your tax return heavily.

The standard deduction in 2023 will increase by a whopping 7% compared to the previous year. This is, by far, the largest automatic inflation-adjusted increase since 1985.

This is good news! Deductions reduce your taxable income, lowering the total amount you owe in taxes. Additionally, if your taxable income has increased as a result of inflation, you may even end up saving some money because of the new changes.

Here are the 2023 federal income tax brackets and rates for Single Filers
and Married Couples Filing Jointly

Tax Rate Taxable Income
(Single)
Taxable Income
(Married Filing Jointly)
10% Up to $11,000 Up to $22,000
12% $11,001 to $44,725 $22,001 to $89,450
22% $44,726 to $95,375 $89,451 to $190,750
24% $95,376 to $182,100 $190,751 to $364,200
32% $182,101 to $231,250 $364,201 to $462,500
35% $231,251 to $578,125 $462,501 to $693,750
37% Over $578,125 Over $693,750

 

Last chance to get your Stimulus Payment!

There was never a better time to become tax compliant! This is the last year you can claim your stimulus payment, so it’s definitely not something to be overlooked. It’s quite a lot of money too! $3,200 to be exact. Whether you are becoming compliant or renouncing your U.S. citizenship, it will certainly cover your compliance costs for the next few years.

The IRS and Treasury Department data estimate that between 9 and 10 million Americans have not received their economic impact payments yet, and are still eligible. If you’re one of those people – make sure to claim your stimulus payment in time!

Still unsure what to do? We can help!

Navigating Tax Season can be pretty challenging, even overwhelming at times. If you’re unsure how to stay on top of your tax obligations, you may want to seek help from a tax professional who is familiar with the unique rules and regulations that apply to US expats.

Here at 1040Abroad, we specialize in international tax planning and tax optimization. We can help you to prepare and file your tax return, and answer any questions you might have.

Don’t hesitate! Contact us today to learn more about our services and book your Free Consultation Call

Kasia Strzelczyk is a certified accountant and IRS enrolled agent with over 8 years of experience working with US expats. With a deep understanding of the unique financial challenges faced by expats, Kasia is dedicated to helping clients navigate complex tax laws and regulations.
U.S. Taxes For American Expats E-book

FREE U.S. Tax Guide for Americans Abroad

The only e-book about U.S. Expat Taxes you need to read! Covers

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