Do American expats continue to pay U.S. and state income taxes?

Yes. Even if you are a permanent resident or citizen of a foreign country, if you remain a U.S. citizen or green card holder who works abroad, you are still required to file U.S. taxes and report your income. However, certain rules and benefits are available to expats, like the foreign earned income exclusion.

As an American expat, you may also still owe state taxes. This depends on the state you lived in prior to moving abroad as the tax residency rules vary by each state. Many states will also allow the foreign earned income exclusion, which can affect your taxable income. Consulting with an expat tax expert can help you determine if you are still required to file a state income tax return or not.

If you’ve been living abroad for a while and you were honestly unaware of your U.S. and state tax obligations, don’t panic. H&R Block has assisted U.S. taxpayers by filing over 720 million tax returns worldwide, including taxpayers residing in over 170 countries.

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