US expats filing guide for 2025: what do you need to know?
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- Tax year: January 1 to December 31, 2025.
- Regular Tax filing deadline: April 15, 2026.
- Automatic expat extension: If you live and work outside the US on the due date, you generally get an automatic extension to June 15, 2026 to file, but interest on any tax due still starts from April 15.
- You can usually request a further extension to around October 15, 2026 using Form 4868.
This is separate from any host-country tax deadlines.
What are the 2025 standard deduction amounts?
For many people under 65 with simple income, the standard deduction is the main filing threshold.
2025 standard deduction (before any age-65 add-on):
| Filing status | 2025 standard deduction |
| Single | US$15,750 |
| Married filing separately | US$15,750 |
| Head of household | US$23,625 |
| Married filing jointly / widowed | US$31,500 |
You generally need to file a 2025 US return if any of these apply:
- Your gross income is at least your standard deduction for your filing status.
- You have US$400 or more of net self-employment income (this rule still applies overseas).
- You owe special taxes (for example, early IRA withdrawal tax, household employment taxes, AMT, or repayment of advance credits).
- You need to claim or reconcile certain credits.
Do US expats need to file a tax return to the IRS for 2025?
In most cases, yes. Living overseas doesn’t automatically remove the requirement to file a US tax return for 2025. If you meet the normal filing thresholds for your filing status, you will generally need to file Form 1040 with the IRS, even if you’ve already paid tax abroad.
Which IRS forms do US expats usually need?
Most US expats start with Form 1040, then add only what matches their specific situation. However, these are the IRS forms that usually come up the most:
- Form 1040 (with the schedules that match your income).
- Form 2555 (Foreign Earned Income Exclusion) and/or Form 1116 (Foreign Tax Credit).
- FinCEN Form 114 (FBAR) if you have foreign accounts over the threshold. This is filed online and it is separate from your tax return.
- Form 8938 (FATCA) if your foreign financial assets are high enough to trigger it.
- Schedule C and Schedule SE if you are self-employed
- Other international forms only when they apply, such as Form 5471, Form 8865, Form 8858, Form 3520, Form 3520-A, Form 8621, and Form 5472.
- Form 4868 if you want an extension to file.
Note that filing your FBAR is not the same thing as filing Form 8938. They have different fuels and thresholds, and some people need both.
What happens if you don’t file?
Not filing can get expensive fast, especially if you actually owe tax or you missed foreign reporting forms. This is because the IRS can add late filing penalties, late payment penalties, and even interest until the balance is paid.
Remember, you can still get penalized even if you owe US$0. Some international forms have separate penalties.
If you’re behind because of a genuine mistake and your misconduct was non-willful, the IRS has options you can take. The most common is the Streamlined Filing Compliance Procedures. You file the last 3 years of late or amended returns (plus required information forms), file the last 6 years of FBARs, and submit a non-willfulness certification (Form 14653 for qualifying foreign residents, or Form 14654 for others).
If the only issue is late FBARs and you have reported all your taxable income, the Delinquent FBAR Submission Procedures may be another option. You file the missing FBARs electronically and include a short explanation for filing late.
If you’re unsure which one fits for you, getting a professional tax advisor’s help can save stress and help you reduce the chances of filing the wrong forms.
How much foreign income can you exclude in 2025?
For many Americans abroad, the Foreign Earned Income Exclusion (FEIE) is the core threshold.
2025 FEIE limit (Form 2555):
| Item | 2025 amount |
| Maximum FEIE per qualifying taxpayer | US$130,000 |
Key points for expats:
- Only “earned” income (salary, wages, certain self-employment income) can be excluded. Investment income never qualifies.
- You must pass:
- the Physical Presence Test (≥ 330 full days in a foreign country in a 12-month period), or
- the Bona Fide Residence Test (genuine long-term residence in a foreign country).
- You may also claim a foreign housing exclusion/deduction if your foreign housing costs are high relative to a base amount, with city-by-city caps.
Which 2025 tax credits matter most for US expats?
Family-related credits
| Credit | 2025 key figures | Notes for US expats |
| Child Tax Credit (CTC) | Up to US$2,200 per qualifying child under 17. Refundable portion up to US$1,700 per child. | Phases out starting at US$200,000 MAGI (single) or US$400,000 (MFJ). Child must have an SSN and generally live with you over half the year. FEIE can reduce your US tax and make it harder to actually use the full credit. |
| Other Dependent Credit (ODC) | Up to US$500 per non-CTC-qualifying dependent. | Common for older children or some relatives you support. Not refundable. |
| Education credits (AOTC / Lifetime Learning) | AOTC up to US$2,500 per eligible student; LLC up to US$2,000 per return. (Existing law continues into 2025.) | Must pay qualified tuition to an eligible institution. Using FEIE or having little US tax due can limit practical benefit. Keep Form 1098-T and receipts. |
-
Earned Income Tax Credit (EITC)
- Maximum 2025 EITC ranges from US$649 (no children) to US$8,046 (three or more children), but it targets low-to-moderate earned income and has strict income caps.
- Most full-year expats do not qualify, because EITC generally requires US residency for more than half the year and disallows returns that exclude foreign earned income using FEIE.
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What 2025 foreign reporting thresholds should expats watch?
These forms are about reporting balances, not paying extra tax by themselves. They are easy to miss and carry serious penalties.
FBAR (FinCEN Form 114)
| Rule | 2025 threshold / detail |
| Who must file? | US persons (citizens, Green Card holders, some residents) with foreign financial accounts. |
| Threshold | Aggregate value over US$10,000 at any time during 2025. |
| Due date | Aligns with April 15, 2026, with an automatic extension to October 15, 2026. |
| Where it is filed | Electronically with FinCEN, not with your Form 1040. |
FATCA / Form 8938 (foreign asset reporting)
Form 8938 thresholds are higher than FBAR and depend on where you live and your filing status. For individuals living outside the US, current thresholds are:
| Living outside the US? | Filing status | Must file Form 8938 if your specified foreign assets are… |
| Yes | Single / MFS | Over US$200,000 on December 31 or over US$300,000 at any time in 2025. |
| Yes | Married filing jointly | Over US$400,000 on December 31 or over US$600,000 at any time in 2025. |
| No (US-based) | Single / MFS | Over US$50,000 on December 31 or over US$75,000 at any time. |
| No (US-based) | Married filing jointly | Over US$100,000 on December 31 or over US$150,000 at any time. |
Note: Form 8938 is attached to your Form 1040 and does not replace FBAR. You may need both.
FAQs
Do I need to do anything to get the automatic June 15 expat extension?
Yes. You usually claim it by attaching a short statement to your return saying you were living outside the US on the regular due date, and you keep proof of your foreign residence/work location in your records.
If I’m an expat, should I still file Form 4868?
What if I can’t pay by April 15, but I can file the extension?
What exchange rate should I use for foreign income and foreign account balances?
I’m married to a non-US spouse overseas. Can I still file jointly?
