The IRS has reminded American citizens who are employed and residing abroad to submit their federal income tax returns by June 15th.
All US citizens and foreign residents, including those with dual citizenship, are subject to this deadline.
June 15 Filing Deadline
A taxpayer meets the requirements for the June 15 filing date if:
- Their place of residence and tax residence are both outside of the United States, Puerto Rico, or
- On the day their tax return is normally due, they are serving in the armed forces outside of the US and Puerto Rico.
Taxpayers who meet the requirements should include a statement with their return stating which of these two scenarios applies.
Many taxpayers who do not reside in the United States are eligible for tax benefits including the Foreign Earned Income Exclusion and the Foreign Tax Credit, but these benefits can only be claimed if a US return is filed.
The IRS also advises families to look into new tax benefits including the Child Tax Credit, Credit for Other Dependents, and Credit for Child and Dependent Care Costs and file claims if they are eligible.
Although foreign taxpayers frequently qualify, the calculation of these credits varies according to whether or not they were residents of the United States for more than half of 2022.
See the instructions to Form 2441, Child and Dependent Care Costs and Schedule 8812, Credits for Qualified Children and Other Dependents, for further details.
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IRS Tax Debt Settlement
Additionally, the IRS has a valid program called Offers in Compromise (OIC) that aids taxpayers in resolving their debits. Sadly, con artists have also seized upon this offer. You must use caution.
Unexpectedly, you might be able to settle your tax liability for less than the whole amount you owe through an offer in compromise, according to the IRS.
It may be a viable alternative if you can’t pay your full tax bill or doing so would put you in financial hardship.
Take into account your particular facts and circumstances.
- Ability to pay
- Income
- Expenses
- Asset equity
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