Tax Season Is Open: What U.S. Expats Need to Do First in January 2026
Tax season officially opens in January, and for U.S. expats, the start of the year is the most important time to get organized. Filing from abroad adds layers of complexity that domestic taxpayers don’t face, including foreign income reporting, currency conversion, and additional disclosure forms. Taking the right steps early can prevent delays, penalties, and unnecessary stress later in the year.
Understand Your U.S. Filing Obligation
U.S. citizens and green card holders must file a U.S. tax return every year, even if they live and work abroad full time. This includes reporting worldwide income from all sources, whether earned in the U.S. or overseas. January is the time to confirm whether you are required to file and which forms apply to your situation.
Gather Income and Financial Documents
Start collecting your documents as soon as possible. Expats often need more paperwork than domestic filers, including:
- Foreign salary statements or contracts
- Self-employment or freelance income records
- Rental income details for foreign property
- Investment and dividend statements
- Foreign pension or retirement account summaries
Having these documents ready early prevents delays once filing begins.
Review Foreign Bank and Asset Reporting Requirements
Many expats forget about additional reporting obligations beyond the tax return itself. If your combined foreign account balances exceeded $10,000 at any point during the year, you may need to file an FBAR. Higher asset values may trigger FATCA reporting on Form 8938. January is the best time to review balances and confirm whether these filings apply.
Evaluate Tax Benefits Available to Expats
January is also when you should assess which tax benefits may apply to you. The Foreign Earned Income Exclusion and the Foreign Tax Credit can significantly reduce or eliminate U.S. tax liability, but they must be applied correctly. Choosing the wrong strategy can result in higher taxes or missed savings.
Check Your State Tax Status
Some states continue to consider individuals residents even after moving abroad. If you moved overseas recently, January is the time to confirm whether you still have state filing obligations. Failing to address state residency issues early can lead to unexpected notices later.
Take Advantage of the Extended Expat Timeline
While expats receive an automatic filing extension to June 15, any tax owed is still due in April. Filing early gives you time to correct errors, request additional information, and plan payments if needed.
Why Early Action Matters
Starting early reduces stress, avoids last-minute mistakes, and allows your tax professional to build the most accurate return possible. January is the foundation for a smooth filing season.
