Do I need to file a US Tax Return?
The US taxes all US citizens and residents (including green card holders) on their worldwide income. This is irrespective of how long they have lived outside the US and how infrequently they return. The filing limits are quite low such that most adults will need to file a Us tax return - even if they do not need to file one in the UK. To give some examples for 2023. If you are under 65 then:-
In addition if you had net earning from self-employment of at least $400 you will need to file.
The only way to avoid filing a tax return and possibly paying tax is to give up your US citizenship or to give up your green card, and even then - in some limited circumstances - you could still be have ongoing tax subject to worldwide taxation for a further 10 years!
Those living outside the US will also be taxed by the country in which they are resident.
In general an individual will not have to pay both US and the local taxes in full as they will often be able to offset the taxes paid in the country where they are resident against their US tax liability. This will often result in no further tax due to the US. However, if their US tax liability is greater than their local tax liability they will have additional taxes to pay to the IRS.
Americans will also often find that there are frequently differing tax treatments on income and deductions between the US and the overseas country in which they are resident. Understanding and planning around these differences can make a huge difference.
- a single person (filing single) will need to file if their gross income was $13,850 or more
- a married couple (filing jointly) will need to file if their gross incomes was $27,700 or more
- a married person filing separately will need to file if their gross income was $5 or more. (Yes five dollars!)
In addition if you had net earning from self-employment of at least $400 you will need to file.
The only way to avoid filing a tax return and possibly paying tax is to give up your US citizenship or to give up your green card, and even then - in some limited circumstances - you could still be have ongoing tax subject to worldwide taxation for a further 10 years!
Those living outside the US will also be taxed by the country in which they are resident.
In general an individual will not have to pay both US and the local taxes in full as they will often be able to offset the taxes paid in the country where they are resident against their US tax liability. This will often result in no further tax due to the US. However, if their US tax liability is greater than their local tax liability they will have additional taxes to pay to the IRS.
Americans will also often find that there are frequently differing tax treatments on income and deductions between the US and the overseas country in which they are resident. Understanding and planning around these differences can make a huge difference.