Filing Requirement

Generally speaking, if your total income for the year does not exceed the standard deduction (per your filing category), then you don’t need to file a federal tax return. Starting 2018, for individuals with income <$12,000, or married couples filing jointly with income <$24,000, there are no filing requirements. However, US expats above these income levels are required by law to file tax returns (regardless of where the income was earned).

Unfortunately, self-employed US expats have a much lower threshold. A meager $400 in earnings triggers the filing requirement.

Benefits to Filing Tax Return, when not required?

While filing taxes may seem less desirable than a trip to the dentist, many individueals don’t realize they may be missing out on certain benefits. Take for example, the child tax credit. Each child could be worth up to a $1,400 in tax refund (even if you paid zero taxes).

Penalties

Important to note, there are penalties associated with not filing your tax return. Read about the failure-to-file and other related penalties.

For general information on US expat taxation, please read: US Taxes for Americans Living Abroad – Ultimate Guide.