Do Americans Living Abroad Still Have to File U.S. Taxes?
Do Americans Living Abroad Really Still Have to File U.S. Taxes? (Spoiler: The IRS Says Yes, and It's Not Kidding)
Picture this: You're sipping coffee in some gorgeous foreign spot, maybe plotting your next nomad jump or just enjoying the view, when that nagging thought hits…"Wait, do I seriously still have to file U.S. taxes? I'm literally not even in the country anymore."
Totally fair question. Most people cross their fingers hoping the answer is a glorious "nope." But the U.S. has other plans. Short answer: Yeah, in way too many cases, you do.
Unlike pretty much every other country on the planet that taxes where you live, America decided to go rogue with citizenship-based taxation. If you're a U.S. citizen or green card holder, the IRS basically shrugs and says, "Cool life abroad, but your worldwide income? Still our business." Doesn't matter if your paycheck's from a foreign gig, your clients are all overseas, or you've been gone for years - the filing obligation loves to tag along like that one friend who never leaves the party.
This is the part that makes most expats go, "Wait, what? That's actually a thing?" Yep, and it's one of the biggest "gotcha" moments out there.
Who gets hit hardest? Long-haul expats, digital nomads ping-ponging countries, freelancers raking in foreign cash, or anyone on a non-U.S. payroll. If money's flowing in (salary, contracts, side hustles) the IRS usually wants an invite to the party.
A lot of the drama comes from these super-common assumptions that just... aren't true:
"I pay taxes where I actually live, so I'm done with the U.S." Sure, you might dodge owing anything after credits or exclusions, but the filing part? Still required in most setups.
"My income's under the Foreign Earned Income Exclusion limit, so I'm golden, no filing needed." Ah, the classic. That exclusion (bumped up to around $132,900 for 2026 income) is a lifesaver for wiping out tax on foreign earnings... but you usually have to file a return to actually grab it. No form, no exclusion. Sneaky, right?
"The IRS has no idea I'm out here living my best life." Famous last words. Between foreign banks spilling details via FATCA, visa apps, or just random future U.S. plans, things have a way of circling back. And the penalties for getting caught napping? Not cute.
Filing as an expat or nomad isn't always the straightforward 1040 you remember. Often there's extra paperwork for foreign income, overseas accounts (FBAR if your foreign balances top $10k aggregate; yep, combined), or other assets abroad, each with its own deadlines and quirks. The upside? For tons of people, it's pure compliance theater, no big tax bill at the end, just paperwork to keep the peace.
If you're sitting there thinking, "Uh oh, I might've skipped a year... or three," breathe. You're not the first, and you won't be the last. Life moves fast, rules are buried in fine print, and honestly, who reads IRS pubs for fun? The fix is usually straightforward once you tackle it head-on—plenty of paths to catch up without the sky falling.
Bottom line: Expat taxes can feel like the universe's way of saying "you can't escape paperwork, even on a beach in Bali." But getting a clear read on your specific setup, whether you need to file, which forms, or how to minimize the hassle, makes it way less overwhelming.
If you're a fellow expat or nomad scratching your head over this stuff, hit me up for a quick discovery call. We'll sort through your situation, figure out what's actually required (and what's not), and map out some sane next steps.
Book a spot whenever you're ready. Let's make taxes the least interesting part of your adventure. 😏
Schedule your discovery call with me :)