Guide
Form 1040: the US individual return
The annual return every US citizen and resident files on worldwide income, wherever they happen to live.
The return that follows you abroad.
Form 1040 is the main US individual income tax return. It reports worldwide income — salary, self-employment, rent, dividends, gains — regardless of which country that income arose in or where you were living when you earned it.
Living abroad does not simplify it. It adds the exclusions, credits and disclosure schedules that a domestic preparer rarely encounters.
At a glance
- Who files
- US citizens, Green Card holders and US tax residents above the filing threshold
- Covers
- Worldwide income for the calendar year
- Due
- 15 April, automatically extended to 15 June if you live abroad
- Further extension
- To 15 October on request
- Note
- Tax owed is still due on the original date, even where filing is extended
In detail
01
What goes on it
Income from every source worldwide, converted to US dollars, with the schedules your circumstances require — Schedule B for interest and dividends, Schedule C for self-employment, Schedule D for gains, Schedule E for rent.
02
Relief for foreign tax
Either the foreign earned income exclusion on Form 2555, or the foreign tax credit on Form 1116. At UK rates the credit is frequently the better answer, and moving between them is not free.
03
The schedules people miss
Form 8938 for foreign financial assets, Form 8621 for non-US funds, Form 5471 for a foreign company, Form 3520 for trusts and large gifts. These attach to the return and carry their own penalties.
04
Filing status
Married to a non-US spouse leaves you choosing between filing separately and electing to treat them as a US taxpayer. The election lowers the rate but pulls their worldwide income into the system.
The annual return every US citizen and resident files on worldwide income, wherever they happen to live.
Frequently asked
Do I file if I owe nothing?
Yes. The obligation is triggered by income above the filing threshold, not by tax being due. Most people abroad file and owe nothing because credits cover the liability.
What is the threshold?
It varies by filing status and age, and is far lower for the self-employed — a few hundred dollars of self-employment income is enough to require a return.
Can I file from abroad electronically?
Usually, though certain forms and situations still require paper. Where paper is needed, allow considerably longer for processing.
How many years back can I claim a refund?
Generally three years from the due date. Beyond that a genuine overpayment is normally lost, which is one reason not to leave unfiled years sitting.
This guide is general information, not advice for your circumstances. Cross-border tax turns on detail, and the right answer for someone with a similar situation may not be the right answer for you. Talk to us before acting on anything here.
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