Questions Regarding US Taxes

Do I need to file a US Tax Return since I am living outside of the US?

I am a US citizen (or greencard holder) and have not filed US taxes for several years. What are the implications of this?

Q: Do I need to file a US Tax Return since I am living outside of the US?

A: If you are a US citizen or resident (greencard holder), you must file a tax return for each year in which your gross income exceeds certain minimum thresholds (as low as $3,100 for the 2003 tax year). Please note that you may not deduct the Foreign Earned Income and/or Housing Exclusions for purposes of determining your gross income for this purpose. You are legally required to report your worldwide income to the United States each year even if you do not owe any taxes. Please note that the US tax authorities are able to initiate a tax audit within the later of three years from the initial due date of the return or the date the tax return was filed. Therefore, if you never file a tax return, the statute of limitations for that year is never completed.

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Q: I am a US citizen (or greencard holder) and have not filed US taxes for several years. What are the implications of this?

A: US tax authorities are able to initiate a tax audit within the later of three years from the initial due date of the return or three years from the date the tax return was actually filed. Therefore, if you never file a tax return, the statute of limitations for that year never start running.

However, it is not too late! Penalties and interests are based on the amount due, so if you do not owe any tax, you will not face any penalties or interest.

If you are married to a non-US spouse and considering moving to the US, you will likely need to show (at a minimum) your last three years of tax returns to prove that you can provide support for your spouse.

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