Tax preparation
in Alexandria, VA.

The Internal Revenue Service (IRS) administers federal taxes. It usually first contacts taxpayers by mail. Read the notice and note any response deadline. If the message is unexpected or asks for sensitive information, verify it through your IRS Online Account, if the notice is available there, or use a phone number you look up on IRS.gov before responding.

IRS guidance on verifying contact

Filing requirements depend on your income, filing status, age, whether someone can claim you as a dependent, and special rules such as those for self-employment. U.S. citizens and people who are U.S. residents for federal tax purposes generally count income from all countries when checking whether they must file.

Nonresidents have separate rules. For example, you may need Form 1040-NR if you were engaged in a U.S. trade or business or if withholding did not cover the U.S. tax you owe.

IRS federal filing requirements · IRS nonresident filing rules

Most individual filers can request an automatic six-month filing extension by the regular deadline, for example by filing Form 4868. The standard extension gives you more time to file. Payment generally remains due on the regular deadline.

Some U.S. citizens and residents qualify for a separate automatic two-month extension to file and pay. This can apply if you live and have your main workplace outside the U.S. and Puerto Rico on the regular due date, or if you meet the overseas military service rule. Attach a statement explaining why you qualify. Interest generally accrues from the regular deadline on any unpaid tax. If you need more time to file, you can generally request a further filing extension by the two-month deadline.

IRS standard filing extension · IRS two-month extension for eligible taxpayers abroad · IRS further filing extension

Late filing and late payment can lead to separate penalties. The IRS can also charge interest on unpaid tax. File any required return as soon as you can, even if you cannot pay in full. Pay what you can and check whether an IRS payment plan is available for the balance.

IRS guidance on filing a past-due return · IRS payment plans

A move abroad generally leaves the federal filing rules for U.S. citizens and U.S. tax residents in place. If you meet the filing requirements, you generally report taxable income from all countries. You may still need a return when a credit or exclusion reduces your U.S. tax to zero.

For a green-card holder, moving abroad or letting the card expire generally does not end U.S. tax residency. Review the residency and expatriation rules before formally ending that status or claiming nonresident treatment under a treaty.

IRS filing rules for taxpayers abroad · IRS green-card test

The IRS generally applies the green-card test or the substantial presence test. The substantial presence test considers days spent in the U.S. during the current year and counts a portion of the days from the two preceding years. Certain days may be excluded, and special elections or treaty rules can affect the outcome. In the year you arrive or leave, you may be a resident for one part of the year and a nonresident for the other.

IRS tax residency rules · IRS substantial presence test

Start with your tax residency and where you physically performed the work. Compensation for services is generally sourced to the work location, regardless of where the employer or payroll is based. U.S. citizens and tax residents generally report worldwide income. Nonresidents should check the U.S. rules for the income they earned and any applicable treaty.

IRS rules on where employment income is sourced · IRS tax guide for residents and nonresidents

Sometimes. A treaty can reduce tax on certain income or provide other relief, depending on the countries, the type of income, and your residence. Many U.S. treaties have a saving clause that generally preserves the U.S. right to tax its citizens and residents, with specific exceptions. Check the treaty for the relevant country and the rules of any state where you file.

IRS list of U.S. income tax treaties

Eligible taxpayers with a tax home in a foreign country may use Form 2555 to exclude some qualifying earnings from work abroad. You must meet the applicable bona fide residence or physical presence test. A separate foreign housing exclusion or deduction may also be available. The foreign tax credit does not cover taxes attributable to income you exclude.

IRS foreign earned income exclusion · IRS Form 2555 · IRS foreign tax credit rules

U.S. citizens and tax residents generally report taxable foreign interest, dividends, and rent, even if the money stays overseas. If you paid foreign income tax, a foreign tax credit may reduce your U.S. tax, subject to eligibility and limits. Employer shares can involve separate reporting when you receive dividends or sell the shares.

IRS guide to reporting income while abroad · IRS guide to the foreign tax credit

A U.S. person with a financial interest in, or signature authority over, covered foreign financial accounts generally files an FBAR if their combined value exceeded $10,000 at any time during the calendar year. The FBAR is filed separately with FinCEN. Form 8938 is a separate IRS requirement for specified foreign financial assets. Its thresholds vary by filing status and where you live. Some taxpayers must file both.

FinCEN FBAR rules · IRS comparison of Form 8938 and FBAR

If you are a U.S. citizen or tax resident, a sale abroad may produce a reportable gain or loss. Calculate the U.S. tax result in U.S. dollars. Exchange rates, the asset type, and your tax basis can affect the result. Any relief for foreign tax paid depends on the asset, the applicable source rules, and whether you qualify for a credit or treaty relief.

IRS currency conversion rules · IRS guidance on credits and income source

U.S. treatment depends on the plan, the country, your tax status, and any applicable treaty. Contributions, earnings, and withdrawals can each be treated differently. A withdrawal may be reportable even if you receive no U.S. tax form. The plan can also raise separate reporting questions, such as whether its value belongs on Form 8938.

IRS guidance on foreign pensions · IRS questions and answers on Form 8938

Depending on what you own and the transactions involved, you may need information returns even if you received no distribution. Examples include Form 5471 for certain foreign corporations, Form 8865 for certain foreign partnerships, and Forms 3520 or 3520-A for certain foreign trust situations. Some foreign mutual funds are passive foreign investment companies (PFICs) and can trigger Form 8621. Each form has its own filing rules and exceptions.

IRS Form 5471 · IRS Form 8865 · IRS Form 3520 · IRS Form 3520-A · IRS Form 8621

U.S. citizens who relinquish citizenship and long-term residents who end their U.S. tax residency can have reporting obligations under Form 8854. If you meet the covered expatriate criteria, the exit tax rules can treat many assets as sold at fair market value just before expatriation. The criteria include financial tests and whether you certify compliance with federal tax obligations for the preceding five tax years. Review these rules before making a decision about your status.

IRS expatriation tax rules · IRS Form 8854 instructions

Yes. Virginia has its own residency and filing rules for full-year residents, part-year residents, and nonresidents. Even if you live elsewhere, Virginia-source income can create a state filing requirement. Virginia can remain your state of domicile after you move abroad, depending on the facts.

Virginia Tax residency and filing rules

If withholding and credits will not cover enough of your tax, you may need to pay during the year. This can apply to self-employment earnings, investment income, or income from abroad. Federal payment deadlines generally fall in April, June, September, and January of the following year. Check the dates for your tax year and any separate Virginia requirements.

IRS estimated tax rules for individuals · IRS payment periods and deadlines · Virginia estimated income tax

Yes. A Social Security totalization agreement can determine which country's system covers your work and help prevent contributions to both systems on the same earnings. Depending on your work history, you may also be able to combine credits to qualify for benefits. The coverage rules depend on the country and your work arrangement. A certificate of coverage can document which system applies.

Social Security Administration overview of totalization agreements · Social Security Administration certificates of coverage

If your federal loan is in repayment, moving abroad generally does not pause the payments. Your loan servicer can confirm your payment schedule and what income documentation your plan requires. Contact the servicer to update your address or discuss a change in income.

Federal Student Aid guidance on loan servicers · Federal Student Aid income-driven repayment form

Start with a timeline of where you lived and worked, your prior U.S. returns, and records of income and taxes paid in each country. If relevant, gather year-end and maximum foreign account balances, pension statements, and purchase or sale records. Include any notices with a deadline and ask which documents are needed for your appointment.

IRS guidance on filing from abroad