She has not filed US tax returns for the past several years, including tax years 2020-2022. Say Emma is a 45-year-old single taxpayer working in Sri Lanka. Retroactively claiming US stimulus checksĬonsider a hypothetical US citizen, Emma, for example. While some may interpret their financial situation to avoid filing, there are instances where filing a tax return can be beneficial. Related: Citizenship Based Taxation – What US Expats Need to Know Tax filing can be financially beneficial, even if you’re technically exempt However, for individuals fitting this profile and under 65, the standard deduction differs from the $5 filing threshold, being $14,600 for the 2024 tax year. If you earn at least $5 and are married but filing separately, you’ll need to file your tax return. Generally, when your annual income is lower than the lowest standard deduction, a tax return does not need to be filed. While the figures are often the same, the standard deduction and minimum income thresholds required to file a tax return are two different things. Minimum filing thresholds and standard deductions: Do you need to file? Below, we look at common aspects of US taxation that comprise a useful baseline from which to craft your expat tax strategy. US expats should review their tax strategy to ensure theirs is optimized for their situation. These adjustments aim to counteract bracket creep and reflect the 2017 Tax Cuts and Jobs Act’s long-term impact. This annual update, in response to inflation adjustments and the Consumer Price Index, includes changes to the 22%, 24%, 32%, 35%, and 37% tax brackets. Let’s dive in! IRS changes 2024: What do tax updates mean for US expats?Ģ024 tax changes for US expats include adjusted income tax brackets and rates for single filers, married couples filing separately, heads of households, and married couples filing jointly. All of this information, and more, is broken out for clarity. We also review tax brackets and rates from the 2023 tax year, which inform how you file taxes for the 2024 filing season. US taxpayers abroad must pay particular attention to these updates, which is where we come in.īelow, we summarize key updates for the 2024 tax year, which will impact your tax filing for the 2025 season. As the 2024 tax year approaches, the IRS has released its end-of-year notice regarding upcoming tax changes.
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