What You Need to Know About Filing US Taxes as an Expat
Sponsored by US Tax Consultants.
All US citizens are required to file a US Individual Tax Return every year, wherever in the world they live. That means that, even if you pay taxes in Spain, you still have to report your worldwide income to the US government. You must file federal income tax Form 1040 if your gross income is at least $5 if you are married filing separately, or $12,950 if you are single.
This year, Tax Day is Monday, April 18, 2023. US citizens residing in the US must file 2022 income tax returns by this date. Expats have an automatic filing extension until June 15, 2023. A further extension is available upon request, which extends the deadline to until October 16, 2023.
Additionally, if the aggregate amount of all the maximum balances of your financial accounts outside the US reached the amount of $10,000 at any point during the year 2022, then you must also file the FBAR (Foreign Bank Account Report) with the Financial Crimes Enforcement Network, FINCEN 114 before June 15, 2023.
Update for This Year on Form 1040 2022
Here are the main things you need to know right off the bat for the 2023 tax season:
- Tax Day is Monday, April 18, 2023. US citizens residing in the US must file 2022 tax returns by this date. Expats have an automatic filing extension until June 15, 2023. A further extension is available upon request, moving the deadline to October 16, 2023, which is a service provided automatically to all clients at US Tax Consultants.
- The standard deduction for 2022 increased to $12,950 for single filers and $25,900 for married couples filing jointly.
Do you know if you need to file Spain's Modelo 720? If you are a Spanish tax resident and have assets outside of Spain valued at €50,000 or more, then you most likely do. Find out what the filing retirements are in our article Spain’s Modelo 720: What You Need to Know.
Things Taxpayers Should Keep in Mind for Form 1040 2022
Contact your tax preparer to check what other forms you must attach to your Form 1040, especially those connected with the automatic exchange of information between both tax agencies in the US and Spain. These can include: Form 8938 report of the financial accounts abroad; Form 5471, Information Return of US Persons with Respect to Certain Foreign Corporations; or Form 8621, Information Return by a Shareholder of a Passive Foreign Investment Company (PFICs). Penalties for not filing the required forms are $10,000 per year not filed.
What U.S. Tax Consultants Needs to Prepare Your Form 1040 and FBAR
For U.S. Tax Consultants to prepare your tax return this year, you should upload all important tax records as soon as possible. These include: W-2 forms from employers, 1099 statements from banks and other payers, other income documents and virtual currency transaction records, even if we need to file first your Spanish tax return from April to July, 2023.
If you have doubts or questions about your filing obligations, please do not hesitate to contact the professionals at U.S. Tax Consultants. With over 50 years of experience helping US citizens with tax preparation, they will make sure that you and your company comply with all the legally established tax filing requirements.
You can learn more about U.S. Tax Consultants online at ustaxconsultants.net, or follow on Facebook: @USTaxConsultants and Instagram: @ustaxconsultants.
Sponsored by US Tax Consultants.
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