Most individual tax returns cover a calendar year, January through December. The regular due date for these tax returns is April 15 of the following year. If April 15 falls on a Saturday, Sunday, or legal holiday, your tax return is considered timely filed if it is filed by the next business day that is not a Saturday, Sunday, or legal holiday. If you get an extension, you are allowed additional time to file and, in some circumstances, pay your tax. You must pay interest on any tax not paid by the regular due date.

Your return is considered filed on time if it is postmarked by the U.S. Postal Service, or dated by a designated delivery service, on or before the due date (including extensions). See your tax form instructions for a list of private delivery services that have been designated by the IRS to meet this “timely mailing as timely filing/paying” rule for tax returns and payments.

If your return is filed late, the postmark or delivery service date does not determine the date of filing. In that case, your return is considered filed when it is received by the IRS.

You must file Form TD F 90-22.1 if at any time during the year you had an interest in, or signature or other authority over, a bank account, securities account, or other financial account in a foreign country. This applies if the combined assets in the account(s) were more than $10,000. Do not include accounts in a U.S. military banking facility operated by a U.S. financial institution.

File the completed form, by June 30 of the following year, with the Department of the Treasury at the address shown on that form. Do not attach it to Form 1040. If you are required to file Form TD F 90-22 but do not do so, you may have to pay a penalty of up to $10,000 (more if the failure to file is willful).

Foreign earned income exclusion and foreign housing exclusion and deduction.   Certain taxpayers can exclude or deduct income earned in foreign countries. However, the foreign earned income and housing exclusions and the foreign housing deduction do not apply to the income you receive as an employee of the U.S. Government.

U.S. agency reimbursed by foreign country.   If you are a U.S. Government employee paid by a U.S. agency to perform services in a foreign country, your pay is from the U.S. Government and does not qualify for the exclusions or the deduction. This is true even if the U.S. agency is reimbursed by the foreign government.

Employees of post exchanges, etc.   If you are an employee of an Armed Forces post exchange, officers' and enlisted personnel club, embassy commissary, or similar instrumentality of the U.S. Government, the earnings you receive are paid by the U.S. Government. This is true whether they are paid from appropriated or nonappropriated funds. These earnings are not eligible for the foreign earned income and housing exclusions or the foreign housing deduction.

Other employment.   If you are a U.S. citizen or resident employed abroad by the U.S. Government and you also receive income from a private employer or self-employment, you may qualify to claim the exclusions or the deduction based on this other income. To qualify, you must meet either the bona fide residence test or the physical presence test. Your spouse who is a U.S. citizen or resident alien may also qualify if he or she earns income in a foreign country that is paid by a private employer or is from self-employment. If you are not a U.S. Government employee, amounts paid by the United States or its agencies to you may also qualify for the exclusions or the deduction.

Additional information.   For more information on the foreign earned income and housing exclusions and foreign housing deduction, see Publication 54.

Pay differentials.   Pay differentials you receive as financial incentives for employment abroad are taxable. Your employer should have included these differentials as wages on your Form W-2, Wage and Tax Statement.

  Generally, pay differentials are given for employment under adverse conditions (such as severe climate) or because the post of duty is located in a hazardous or isolated area that may be outside the United States. The area does not have to be a qualified hazardous duty area as discussed in Publication 3. Pay differentials include:

Foreign areas allowances.   Certain foreign areas allowances are tax free. Your employer should not have included these allowances as wages on your Form W-2.

  Tax-free foreign areas allowances are allowances (other than post differentials) received under the following laws. These allowances cover such expenses as: Allowances received by foreign service employees for representation expenses are also tax free under the above provisions.

Cost-of-living allowances.   If you are stationed outside the continental United States or in Alaska, your gross income does not include cost-of-living allowances (other than amounts received under Title II of the Overseas Differentials and Allowances Act) granted by regulations approved by the President of the United States. Cost-of-living allowances are not included on your Form W-2.

Federal court employees.   If you are a federal court employee, the preceding paragraph also applies to you. The cost-of-living allowance must be granted by rules similar to regulations approved by the President.

American Institute in Taiwan.   If you are an employee of the American Institute in Taiwan, allowances you receive are exempt from U.S. tax if they are equivalent to tax-exempt allowances received by civilian employees of the U.S. Government.

Federal reemployment payments after serving with an international organization.   If you are a federal employee who is reemployed by a federal agency after serving with an international organization, you must include in income any reemployment payments you receive. These payments are equal to the difference between the pay, allowances, post differential, and other monetary benefits paid by the international organization and the pay and other benefits that would have been paid by the federal agency had you been detailed to the international agency.

Allowances or reimbursements for travel and transportation expenses.   See How To Report Business Expenses, later, for a discussion on whether a reimbursement or allowance for travel or transportation is included in your income.

Lodging furnished to a principal representative of the United States.   If you are a principal representative of the United States stationed in a foreign country, you do not have to include in income the value of lodging (including utilities) provided to you as an official residence. However, amounts paid by the U.S. government for your usual costs of operating and maintaining your household are taxable. If amounts are withheld from your pay to cover these expenses, you can not exclude or deduct those amounts from your income.

Peace Corps.   If you are a Peace Corps volunteer or volunteer leader, some allowances you receive are taxable and others are not.

Taxable allowances.   The following allowances must be included on your Form W-2 and reported on your return as wages. Taxable allowances are considered received by you when credited to your account.

Nontaxable allowances.   These generally include travel allowances and the part of living allowances for housing, utilities, food, clothing, and household supplies. These allowances should not be included on your Form W-2. These allowances are tax free whether paid by the U.S. Government or the foreign country in which you are stationed.

Republic of Panama.   Income earned by any citizen or resident of the United States is not exempt from U.S. tax by any section of the Panama Canal Treaty. See Allowances, Differentials, and Other Special Pay, earlier.

Sale of personal property.   If you have a gain from the sale of your personal property (such as an automobile or a home appliance), whether directly or through a favorable exchange rate in converting the proceeds to U.S. dollars, the excess of the amount received in U.S. dollars over the cost or other basis of the property is a capital gain. Capital gains are reported on Schedule D (Form 1040), Capital Gains and Losses. However, losses from sales of your personal property, whether directly or through an unfavorable exchange rate, are not deductible.

Sale of your home.   All or part of the gain on the sale of your main home, within or outside the United States, may be taxable. (Losses are not deductible).

  You may be able to exclude from income any gain up to $250,000 ($500,000 on a joint return). Generally, you must have owned and used the home as your main residence for two of the five years preceding the date of sale.

  For detailed information on selling your home, see Publication 523.

Subject to certain limits, you can deduct your unreimbursed ordinary and necessary expenses of traveling away from home in connection with the performance of your official duties. These expenses include such items as travel costs, meals, lodging, baggage charges, local transportation costs (such as taxi fares), tips, and dry cleaning and laundry fees.

Your home for tax purposes (tax home) is your regular post of duty regardless of where you maintain your family home. Your tax home is not limited to the Embassy, consulate, or duty station. It includes the entire city or general area in which your principal place of employment is located.

You can deduct allowable transportation expenses that are directly related to your official duties. Transportation expenses include the cost of transportation by air, rail, bus, or taxi, and the cost of driving and maintaining your car. They do not include expenses you have when traveling away from home overnight. Those expenses are deductible as travel expenses and are discussed earlier.

You may be able to deduct other unreimbursed expenses that are connected with your employment.

If you claim a deduction for unreimbursed business expenses, you must keep timely and adequate records of all your business expenses.

For example, you must keep records and supporting evidence to prove the following elements about deductions for travel expenses (including meals and lodging while away from home).

As a U.S. Government employee, your business expense reimbursements are generally paid under an accountable plan and are not included in your wages on your Form W-2. If your expenses are not more than the reimbursements, you do not need to show your expenses or reimbursements on your return.

However, if you do not account to your employer for a travel advance or if you do not return any excess advance within a reasonable period of time, the advance (or excess) will be included in your wages on your Form W-2.

If you are entitled to a reimbursement from your employer but you do not claim it, you cannot deduct the expenses to which that unclaimed reimbursement applies.

If you changed job locations or started a new job, you may be able to deduct the reasonable expenses of moving yourself, your family, and your household goods and personal effects to your new home. However, you cannot deduct any expenses for which you received a tax-free allowance as a U.S. Government employee.

To deduct moving expenses, your move must be closely related to the start of work and you must meet the distance test and the time test.

You may be able to claim other itemized deductions not connected to your employment.

Foreign tax credit.   Your foreign tax credit is subject to a limit based on your taxable income from foreign sources. If you choose to figure a credit against your U.S. tax liability for the foreign taxes, you must generally complete Form 1116 and attach it to your U.S. income tax return.

   You cannot claim a credit for foreign taxes paid on amounts excluded from gross income under the foreign earned income or housing exclusions. If all your foreign income is exempt from U.S. tax, you will not be able to claim a foreign tax credit.

  If, because of the limit on the credit, you cannot use the full amount of qualified foreign taxes paid or accrued in the tax year, you are allowed to carry the excess back 1 year and then forward 10 years. This rule applies to foreign taxes arising in years beginning after October 22, 2004. Foreign taxes arising before October 23, 2004, generally can be carried back 2 years and then forward 5 years. However, any of those taxes which can be carried forward to any tax year ending after October 22, 2004, can be carried forward an additional 5 years.

Exemption from limit.   You can elect to not be subject to the foreign tax limit if you meet all the following conditions. If you make the election, you can claim a foreign tax credit without filing Form 1116. However, you cannot carry back or carry over any unused foreign tax to or from this year. See the instructions for the appropriate line in the Tax and Credits section of Form 1040.

Foreign tax deduction.   If you choose to deduct all foreign income taxes on your U.S. income tax return, itemize the deduction on Schedule A (Form 1040). You cannot deduct foreign taxes paid on income you exclude under the foreign earned income or housing exclusions.

Deduction for other foreign taxes.   The deduction for foreign taxes other than foreign income taxes is not related to the foreign tax credit. You can take deductions for these miscellaneous foreign taxes and also claim the foreign tax credit for income taxes paid to a foreign country.

  You can deduct real property taxes you pay that are imposed on you by a foreign country. You take this deduction on Schedule A (Form 1040). You cannot deduct other foreign taxes, such as personal property taxes, unless you incurred the expenses in a trade or business or in the production of income.

More information.   The foreign tax credit and deduction, their limits, and carryback and carryover provisions are discussed in detail in Publication 514.

Internet. You can access the IRS website 24 hours a day, 7 days a week, at www.irs.gov to:

Fax. You can get over 100 of the most requested forms and instructions 24 hours a day, 7 days a week, by fax. Just call 703-368-9694 from the telephone connected to your fax machine. When you call, you will hear instructions on how to use the service. The items you request will be faxed to you.

For help with transmission problems, call 703-487-4608.

Long-distance charges may apply.

Phone. Many services are available by phone.

Walk-in. Many products and services are available on a walk-in basis.

Mail. You can send your order for forms, instructions, and publications to the National Distribution Center at the following address and receive a response within 10 business days after your request is received.

CD-ROM for tax products. You can order Publication 1796, IRS Federal Tax Products CD-ROM, and obtain:

Buy the CD-ROM from National Technical Information Service (NTIS) at www.irs.gov/cdorders for $22 (no handling fee) or call 1-877-233-6767 toll free to buy the CD-ROM for $22 (plus a $5 handling fee). The first release is available in early January and the final release is available in late February.

CD-ROM for small businesses. Publication 3207, The Small Business Resource Guide, CD-ROM, is a must for every small business owner or any taxpayer about to start a business. This handy, interactive CD contains all the business tax forms, instructions, and publications needed to successfully manage a business. In addition, the CD provides other helpful information, such as how to prepare a business plan, finding financing for your business, and much more. The design of the CD makes finding information easy and quick and incorporates file formats and browsers that can be run on virtually any desktop or laptop computer.

It is available in early April. You can get a free copy by calling 1-800-829-3676 or by visiting www.irs.gov/smallbiz.

During the filing period (January to mid-June), you can get the necessary federal tax forms and publications from U.S. Embassies and consulates. You can request Package 1040-7 for Overseas Filers, which contains special forms with instructions and Publication 54.

Also during the filing season, the IRS conducts an overseas taxpayer assistance program. To find out if IRS personnel will be in your area, you should contact the consular office at the nearest U.S. Embassy.

Phone. You can also call your nearest U.S. Embassy, consulate, or IRS office listed below to find out when and where assistance will be available. These IRS telephone numbers include the country and city codes required if you are outside the local dialing area.

Overseas taxpayers can also call the IRS Philadelphia Service Center for help at (215) 516–2000 from 6 a.m. to 2 a.m. Eastern Standard Time.

If you are in Guam, the Bahamas, U.S. Virgin Islands, or Puerto Rico, you can call the IRS at 1-800-829-1040.

Mail. For answers to technical or account questions, you can write to:

Internet. With your personal computer and modem, you can access the IRS on the Internet at www.irs.gov. For more information on the website, see Internet under Services Available Inside the United States, earlier.