If you are a U.S. resident within the meaning of Internal Revenue Code (IRC) section 7701(b)(1)(A), the rules for filing income, estate, and gift tax returns and paying estimated tax are generally the same whether you are in the United States or abroad. Your worldwide income is subject to U.S. income tax the same way as a U.S. citizen. You are a resident of the United States for tax purposes if you meet either the green card test or the substantial presence test for the calendar year. In some cases, an individual who is not a U.S. resident within the meaning of IRC section 7701(b)(1)(A) can choose to be treated as a U.S. resident. For example, if, at the end of the tax year, you are a U.S. resident and your spouse is a nonresident, the two of you can choose to treat the nonresident spouse as a U.S. resident and file Form 1040 using the filing status married filing jointly. Tax treatment of U.S. residents If you are a U.S. resident, you use the same forms and mailing addresses as U.S. citizens. You can use the same filing statuses available to U.S. citizens. You can claim the same deductions allowed to U.S. citizens if you are a U.S. resident within the meaning of IRC section 7701(b)(1)(A) for the entire tax year. See taxation of U.S. residents for more information. Electronic filing (e-file) Taxpayers with an AGI (Adjusted Gross Income) within a specified threshold can electronically file their tax return for free using Free File. Taxpayers with an AGI greater than the specified threshold can either use the free file fillable forms or e-file by purchasing commercial software. A limited number of companies provide software that can accommodate foreign addresses. To determine which will work best for you, get help choosing a software provider. Determining residency Green card test Substantial presence test Tax residency status examples Residency starting and ending dates Nonresident spouse treated as a resident Dual status individuals Filing requirements and filing status Extensions of time to file Taxpayer identification number requirement Exempt individuals: Foreign government-related individuals U.S. citizens and residents abroad – Head of household Nonresident spouse Income Resident alien claiming a treaty exemption for a scholarship or fellowship Certification of U.S. residency for tax treaty purposes Source of income – Personal services income Social Security and Medicare tax for U.S. citizens and residents employed abroad Employees of a foreign government or international organization – Federal income tax withholding Deductions Foreign earned income exclusion Individual retirement arrangements and the foreign earned income exclusion/deduction Credits Foreign tax credit Earned income tax credit rules Am I eligible to claim an education credit Child and dependent care credit Other taxes Departing alien clearance (sailing permit) Social Security tax/Medicare tax and self-employment tax for work in the U.S. Self-employment tax for businesses abroad Social Security tax consequences of working abroad Employees of a foreign government or international organization – FICA Employees of a foreign government or international organization – FUTA Forms Certain taxpayers related to foreign corporations must file Form 5471 Publication 54, Tax Guide for U.S. Citizens and Resident Aliens Abroad Resources/help Contact my local office internationally Competent authority assistance Foreign Account Tax Compliance Act (FATCA) Forms and publications Report of Foreign Bank and Financial Accounts (FBAR) Frequently asked questions (FAQs) about international individual tax matters
