An American expat should know that they have to file US tax returns, but not every expat.
This depends on the various thresholds that have been given by the IRS.
U.S Tax Pros helps you to identify your filing status in an easy manner and helps you along the entire tax filing procedure.
The IRS (Internal Revenue System) gives a lengthy list for expats to check for various thresholds for filing taxes.
For example: Single Filer Expats who earned more than US$12,550 in total globally (US$14,250 if age 65 or older) or maybe just US$400 for self-employed workers or just US$5 of any income if they are married to a foreigner but file separately are required to file a US federal tax return reporting their worldwide income.
Here are some 2021 Minimum Filing Thresholds that you can relate to –
Single filing Status:
US$12,550 if under age 65
US $14,250 if age 65 or older
Married filing jointly:
US$25,100 if both spouses under age 65
US$26,450 if one spouse under age 65 and one age 65 or older
US$27,800 if both spouses age 65 or older
Married filing separately — $5 for all ages
Head of household:
US$18,800 if under age 65
US$20,500 if age 65 or older
Qualifying widow(er) with dependent child:
US$25,100 if under age 65
US$26,450 if age 65 or older
Confused yet? If not, this will throw you for a loop.
There are times when it pays to file a tax return even if you come in below the threshold!
Reason #1 – You are owed a refund!
Reason #1 – Money was withheld from your US paycheck whilst working outside the US, and you had to pay tax on those earning in the country where you expatriated to. Those withholdings may be refundable.
