Most U.S. taxpayers have already filed their tax returns (which were due by April 15), but there are surely still a few procrastinators out there who haven’t done it yet. For them, the Internal Revenue Service (IRS) has granted an automatic two-month extension, but be careful, it’s not for everyone. Only U.S. citizens and residents currently living outside the country can access this extension.
But take note, you only have until June 16 to avoid late fees, so hurry up!
Why is there an automatic extension?
This isn’t new, although very few people are aware of it. It’s a “benefit” for people who, for work, military, or personal reasons, reside or work abroad during tax season. It allows them a bit more time to submit the form, but only the form, not the payment!
Who qualifies for this extension?
The IRS automatically grants the extension to:
- U.S. citizens or legal residents (green card holders) who are outside the country on the original deadline (April 15).
- It also includes members of the Armed Forces on active duty abroad.
No request is needed to access the extension. The benefit is automatic, but if you file late without meeting the conditions, penalties may apply.
What if I can’t pay before June 16?
If June 16 still isn’t enough, you can file Form 4868, which gives you additional time to submit your return, but not to pay what you owe. That means that even if you get more time to file, any unpaid taxes are still due by June 16.
And if you don’t pay by then… interest and possible penalties on the unpaid amount will start to apply.
Why is there an extension for those living abroad?
According to Professor Richard D. Pomp, a tax law expert at the University of Connecticut, this rule dates back to a time before digitization, when sending documents from abroad could take weeks. The expert believes this concession may be overly generous today, given how easy it is to send forms and emails now thanks to digital tools.
Even so, the IRS still offers it, and many people who qualify don’t even know it exists!
What do I need to report if I live outside the U.S.?
U.S. citizens and residents must report all worldwide income, not just income earned in the U.S. This includes:
Wages
- Interest or dividend income
- Investment gains
- Rental income or other business activity
Living outside the U.S. does not exempt you from filing taxes, keep that in mind, because the tax obligation remains as long as you maintain your citizenship or legal permanent resident status.
If you’re outside the U.S., don’t assume you’re exempt from filing taxes. The IRS gives you until June 16, but it also requires you to stay current on any unpaid amounts.
Summary of information:
| Regular tax filing deadline | April 15 |
| Automatic extension available for | U.S. citizens and legal residents living abroad (including military) |
| Deadline for those who qualify | June 16 |
| Is a request needed for the extension | No, it is automatic |
| What does the automatic extension cover | Only the form submission, not the payment |
| What if you can’t file it on time? | File Form 4868 (only extends time to file, not to pay) |
| What if you don’t pay by June 16? | Possible penalties apply… |
| What income must report if living abroad | All worldwide income: wages, interest, investments, rental, business… |