Tax season is in full swing, but if you live or work outside the U.S., you might be in for a little breathing room. The IRS just gave some Americans a bit of good news—and if you meet certain conditions, your tax deadline is not April 15 like everyone else’s. It is June 16.
Here is what that means for you, who qualifies, and what you need to do next
Who qualifies for the june 16 tax deadline extension
If you are a U.S. citizen or resident alien living outside the U.S. or Puerto Rico, you automatically get two more months to file your taxes. You do not need to ask for it—it is automatic.
You qualify for the June 16 deadline if:
- You live outside the U.S. or Puerto Rico.
- Your main place of business is outside the U.S.
- You are in the military and stationed abroad.
Note: You must attach a statement to your tax return explaining that you meet these conditions.
What income do you have to report if you live abroad
Even if you live overseas, you still need to report all your income to the IRS. That includes:
- Wages or salary from a job abroad
- Investment income like interest or dividends
- Rental income
- Any foreign business or freelance earnings
If you miss reporting, you could face penalties or lose out on benefits.
How foreign tax benefits can help reduce what you owe
Here is where things can work in your favor. If you are living and working outside the U.S., you may be able to reduce or even erase your tax bill using:
- Foreign Earned Income Exclusion – This lets you exclude up to a certain amount of your income earned abroad from U.S. taxes.
- Foreign Tax Credit – If you already paid taxes to a foreign country, this credit helps avoid double taxation.
But you must file your return to claim these.
Will you owe interest if you pay after april 15
Yes. Even though you get more time to file, the IRS still starts charging interest on any taxes you owe after April 15.
Right now, that interest rate is 7 percent per year, and it is compounded daily. So, if you think you owe anything, it is a good idea to pay early—even if you file later.
How to file if you need more time beyond june 16
If June 16 is still not enough time, you can request a further extension to file by October 15. You can do that by:
- Using IRS Free File online
- Filing Form 4868 by mail
This extension only gives you more time to file, not to pay.
Do you need to report foreign bank accounts
Yes. If you had more than $10,000 in foreign accounts at any point in 2024, you must file FinCEN Form 114 with the Treasury Department. This is separate from your regular tax return.
You have until October 15 to do this, and the good news is you get an automatic extension.
What about americans in israel, gaza or the west bank
If you live or own a business in Israel, Gaza, or the West Bank, the IRS is giving you even more time. Your deadline to file and pay is September 30.
What tax experts are saying
Jay A. Soled, a professor at Rutgers Business School, told Newsweek, “Unpaid tax-year 2024 tax balances will begin accruing interest…after April 15, 2025.”
He also said this rule for Americans living abroad comes from “a bygone era” and might be outdated given modern technology.
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