Who must file?
Every Taxpayer, whose Gross Income is more than the Standard Deduction, must file. Gross Income is income before deductions and exclusions (such as FEIE).
Standard Deduction Rate:
Filing Status
Single: $13,850
Married Filing Jointly: $27,700
Married Filing Separately: $13,850
Head of Household: $20,800
There are no Exemptions in 2023.
Qualified Dividends & Long-Term Capital Gains rate: 0%, 15%, or 20%, depending on filing status and income.
Short-term capital gains (assets held one year or less) are taxed at the normal rate.
Child Tax Credit: $2,000
Foreign Earned Income Exemption: Up to $120,000
Standard Housing Exclusion: Qualified housing expenses in excess of $19,200 per year, with a maximum of $36,000 unless living in a high cost locality.
Exchange rates, local unit to US dollar for 2023:​
Euro: 0.000
Swiss Frank: 0.000
UK Pound: 0.000
Japanese Yen: 100.000
Canadian $ : 1.0000
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When to file:
2021 taxes are due April 15. However, taxpayers living abroad receive an automatic extension to June 17. Taxpayers who are waiting to qualify under the Physical Presence Test and cannot file by June 15 have two options:
· Pay the entire tax amount without using Form 2555 and file an amended return later, or, the usual option:
· Use Form 4868 which gives an automatic extension until October 15. Or, if after October 15, file for an extension to qualify under either the Physical Presence Test or Bona Fide Residence Test using Form 2350.
NB: The June 17 extension, or any other extension, are extensions to file and not extensions to pay. The estimated tax liability must be paid by April 15 to avoid interest and penalty.
Where to file:
Taxpayers living in a foreign country file at this address:
Department of the Treasury
Internal Revenue Service
Austin, TX 73301-0215
USA
Estimated tax payments should be mailed with form 1040-ES to:
Internal Revenue Service
P.O. Box 1303
Charlotte, NC 28201-1303
USA