US Expat tax for Americans Living Abroad
All US citizens, whether they reside in the United States or any other country are required to submit U.S. income tax as in accordance with the regulations of the US government, otherwise known as the Expatriate Tax Report. The requirements for filing tax returns are not much different when you're an ex-pat. All income earned across the globe will be subject to US taxation and must be reported when you prepare your Expat Tax Form.
If you're one of the US citizen or green card holder who is currently residing or performing military duty outside the US then the deadline for filing your income tax has been extended until June 15th. This means that you receive an automatic extension of two months beyond your regular deadline for filing taxes. There is no need to submit a request to request this extension. There's no penalty for this extended two-month deadline. But, you'll have declare any interest you earn over the extra two months.
If you're not in a position to file the income tax returns in the time frame of the two-month extension, and you require more time to complete the process and you are unable to do so, then make a request for the same. The extension is granted at a maximum of four additional months, which means you will need to wait until October 15th in order to file the return. This additional extension could result in an additional penalty. This penalty is calculated according to the time delay since the default extension day (June 15th). In this situation you will be required be required to settle interest for tax unpaid for the extended period of time.
All income that is declared on the tax return must be declared all in US dollars. Anything you earn in foreign currency must be converted to dollars according to the appropriate exchange rates. If you earn all of your earnings in foreign currency then you are able to utilize the average rate for the year to conversion. If it was an exact time period when you earned money in foreign currency, you can use the rate at that period to convert.