US Filing Requirements for Expats
All US citizens, well as holders of unrevoked green cards, regardless of residency, who had gross income over $12,950 in 2023, in total, from all sources, worldwide, are required to report that income to the IRS. And in certain situations, the requirement is even lower. Someone who earned just $400 of self-employment income is required to file a return, as well as someone, who files Married Filing Separately, and earned just $5 of income from any source, is required to report worldwide income on a US federal tax return.
Special Situations That Require Filing
There are a number of other special situations which might requiring filing, even if the amounts are less than those mentioned above, so it’s best to check out your situation and be sure. Among these special cases are those taxpayers who qualify as dependents of another taxpayer. For example, a dependent who had more than $1,100 of unearned, i.e. investment, income for the year, is required to report it.
Filing Can Be Beneficial Even When Not Required
There exist situations where filing a tax return can be beneficial, even though it’s not required. For example, a taxpayer may want to file a 2021 return in order to receive certain refundable credits which the taxpayer is eligible for, such as the Child Tax Credit. And if the taxpayer has not been required to, and/or has not filed prior returns, filing a 2021 return is the only way to claim a previously non-received 3rd Stimulus Payment of $1,400 per eligible person.
Accidental Americans
All these rules apply to so-called Accidental Americans, i.e. those people who have never lived in the US but received US citizenship/US passports through their parents or grandparents, or who were merely born in the US, but never really lived there.