What forms do expats need to file?

US expats typically need to file several forms beyond the standard Form 1040. The specific forms required depend on your income sources, financial accounts, and personal situation, but here are the most common forms for Americans living abroad.

The core return is Form 1040, which reports your worldwide income. Attached to this, most expats will need Form 2555 to claim the Foreign Earned Income Exclusion (FEIE) and/or the Foreign Housing Exclusion. If you are claiming the Foreign Tax Credit instead of or in addition to FEIE, you will need Form 1116 for each category of foreign-source income.

For foreign financial account reporting, FinCEN Form 114 (FBAR) must be filed separately through the BSA E-Filing System if the aggregate value of your foreign financial accounts exceeds $10,000 at any time during the year. Form 8938 (Statement of Specified Foreign Financial Assets) is filed with your tax return if your foreign assets exceed $200,000 on the last day of the year or $300,000 at any time during the year (thresholds for expats filing single; higher for married filing jointly).

Other commonly required forms include: Form 8833 for treaty-based return positions, Form 5471 if you are a shareholder in a controlled foreign corporation, Form 8621 for Passive Foreign Investment Company (PFIC) reporting, Form 3520 and 3520-A for foreign trusts and gifts, Schedule SE for self-employment tax, and Schedule C or Schedule E for business or rental income.

The complexity of expat tax returns often requires professional preparation. Missing even one required form can result in substantial penalties — for example, the penalty for failing to file Form 5471 is $10,000 per form. At Zenith Financial, we identify every form required for your specific situation and ensure nothing is missed.