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Do US Citizens Living Abroad Pay US Taxes?
Short answer: Yes. US citizens and green-card holders are taxed on worldwide income under the same rules as people living in the US. Whether you must file depends on your gross income, filing status and age. Moving abroad does not change that test.
Key takeaways
Citizens and green-card holders abroad file under the same rules as people in the US.
Income you can exclude still counts toward the filing test.
The exclusion and the foreign tax credit cannot both be used on the same income.
The FBAR and Form 8938 are separate filings with different thresholds.
Living abroad gives you extra time to file, but not extra time to pay.
The plain answer
The US taxes its citizens on their worldwide income, wherever they live. The IRS says the rules are generally the same whether you live in the United States or abroad. Paying tax to another country does not remove the US filing duty.
Living abroad does give you tools to avoid paying US tax twice on the same income, and extra time to file.
Who must file for tax year 2025
Filing is driven by worldwide gross income, filing status and age. These are the gross income thresholds for tax year 2025, from the Form 1040 instructions:
Single, under 65: $15,750
Single, 65 or older: $17,750
Married filing jointly, both under 65: $31,500
Married filing separately, any age: $5
Head of household, under 65: $23,625
Qualifying surviving spouse, under 65: $31,500
Two rules catch people out. First, for the filing test, gross income includes income you can exclude as foreign earned income. Second, if your net earnings from self-employment are $400 or more, you must file, whatever your gross income is.
The IRS has not published the 2026 filing thresholds yet.
Green-card holders
A green-card holder is a US resident alien. The green card test is met if you were a lawful permanent resident at any time during the year. You are taxed on worldwide income like a citizen.
The two main ways to reduce double tax
Foreign earned income exclusion (Form 2555). It lets you exclude foreign earned income up to $130,000 for tax year 2025 and $132,900 for tax year 2026, per person. You need a tax home in a foreign country plus one of two tests: bona fide residence, or physical presence of at least 330 full days in any 12 consecutive months. It covers pay for personal services, not pensions or Social Security benefits. It lowers income tax only, not self-employment tax. Details are in our FEIE guide.
Foreign tax credit (Form 1116). It credits foreign income tax you paid against your US tax. The credit cannot exceed the foreign tax you actually owed. Unused foreign taxes carry back 1 year and forward 10 years.
You cannot use both on the same income. You cannot take a credit or deduction for foreign tax on income you choose to exclude. Which route gives the lower US bill depends on your numbers, so run both before you file.
The reporting most people miss
FBAR (FinCEN Form 114). You must file if the combined value of your foreign financial accounts exceeded $10,000 at any time in the calendar year. It is filed electronically with FinCEN, not with your tax return.
Form 8938 (FATCA). It is attached to your return, and it is separate from the FBAR. If you live abroad, the thresholds are:
Single or married filing separately: more than $200,000 on the last day of the year, or more than $300,000 at any time
Married filing jointly: more than $400,000 on the last day of the year, or more than $600,000 at any time
Our guide to FBAR filing and its deadline has the details.
Deadlines when you live abroad
A calendar-year return is normally due April 15. If you live outside the US and Puerto Rico and your main place of business is outside them, you get an automatic extension to June 15. You attach a statement to the return explaining why. No form is filed in advance.
Interest still runs from April 15 on any tax not paid by then. Form 4868 extends your time to file to October 15, but not your time to pay. You can also ask for a further 2 months, to December 15, by writing to the IRS by October 15.
The FBAR is due April 15 and extends automatically to October 15. Returns with a foreign address can be e-filed.
If you never filed
The IRS streamlined procedures are for people whose failure to file or report foreign assets was non-willful. Foreign Offshore filers submit 3 years of returns and 6 years of FBARs, and pay the tax and interest owed. You are not eligible if you are under a civil exam or criminal investigation. Read the streamlined Foreign Offshore guide before you file anything.
Moving abroad is not renouncing
Living abroad leaves you under the same US filing rules. Giving up citizenship is a separate legal step.
The IRS describes the expatriation date for a citizen as generally the date a Certificate of Loss of Nationality is issued, among other listed events. A person is a covered expatriate if any one of three tests is met: net worth of $2 million or more, average annual net income tax over $206,000 for the five prior years (tax year 2025; $211,000 for 2026 expatriations), or failing to certify five years of tax compliance on Form 8854. Our renunciation and exit tax guide explains the process.
Your first year abroad: a checklist
Keep a day-by-day record of where you are. The 330-day test counts full days abroad.
Note the date you established a foreign tax home.
List every foreign account, with the highest balance each year, for the FBAR and Form 8938.
Keep records of foreign tax you pay, for the credit.
Decide early whether the exclusion, the credit, or a mix fits.
Put April 15, June 15 and October 15 in your calendar.
If you will not meet a residence or presence test until after your return is due, ask about Form 2350.
How we help
Sabih Shafi is an IRS Enrolled Agent, federally licensed to represent taxpayers before the IRS in all 50 states. We prepare Form 1040 returns for Americans abroad, including Form 2555, Form 1116, FBARs and Form 8938. We work in English or Spanish, entirely remotely.
The free review is 20 minutes. If you hire us, the flat fee is quoted in writing before any work starts. Call or text (323) 900-0305, or book a free 20-minute tax review. Los Angeles is our base, but we serve Americans in all 50 states and abroad. You can verify any preparer at the IRS Return Preparer Office directory.
General information, not tax advice for your situation.
Frequently Asked Questions
Do expats pay US taxes twice?
Not necessarily. The exclusion and the foreign tax credit exist to reduce double tax, but you cannot use both on the same income.
Do I have to file if I earn less than the exclusion?
Possibly. For the filing test, gross income includes income you can exclude, and the exclusion is only claimed on a return you file.
Does a green-card holder abroad have to file?
Yes, under the same rules as a citizen. A green-card holder is a resident alien taxed on worldwide income.
Is the FBAR the same as Form 8938?
No. The FBAR goes to FinCEN with a $10,000 aggregate threshold. Form 8938 is attached to your return and has higher thresholds abroad.
What if I never filed while living abroad?
The streamlined procedures may fit if your failure was non-willful. Book a review before you file anything.
Last reviewed: October 2026 by Sabih Shafi, EA
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This article is general information, not individual tax advice. If you want to talk through your own IRS or state balance, book a free 20-minute review or call or text us directly.
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