U.S. Tax can be a daunting subject for Americans within the U.S.A, let alone for those living outside of America with U.S. tax obligations. This article aims to help you establish whether you are required to file a tax return.
During 2017 the U.S. Department of State released statistics that identified over 6.3 million Americans living abroad. If you are one of these Americans, or a resident alien, you are required to report your worldwide income to the IRS- even if you don’t have any income from the U.S. or have never actually been to the U.S.
If your worldwide income in the period January 1st, 2017 to December 31, 2017 was below the amounts shown in the list below you were not required to file a tax return for the US 2017 tax year- please note this applied to employed individuals only, there is a separate criteria for those who are self-employed.
Worldwide income includes all money, goods, property and services which are not excluded from U.S. tax.
Single- under 65- $10,000
Single- 65 or older- $11,950
Head of Household- Under 65- $13,400
Head of Household- 65 or older-$14,950
Qualifying Widow(er)- under 65- $16,750
Qualifying Widow(er)- 65 or older- $18,000
Married Filing Jointly- $20,800
Married Filing Jointly- not living with spouse at the end of the year- $4,050
Married Filing Jointly- one spouse is over 65- $22,050
Married filing jointly- both spouses 65 or over- $23,300
Married Filing Separately- $4,050
If your net earnings from self-employed work are $400 or more, you must file a U.S. tax return.
If you are a resident alien- a green card holder or substantial presence test- you are still required to file a U.S. Return.