Do You Need to File Taxes as a US Expat in 2025?
If you’re a US expat living in the UAE or the Middle East, you must know the minimum income to file taxes for 2025. US citizens must report their global income to the IRS whether they live in the UAE or anywhere else. But do you have to file a tax return? It depends on your filing status, income level, and other factors, such as the requirements of FBAR (Foreign Bank Account Report).
This article by Expat US Tax covers everything US expats need to know about filing taxes in 2025, including income thresholds, filing requirements, and special considerations for expats in the UAE and the Middle East.
2025 Minimum Income to File Taxes: What You Need to Know
Tax filing requires minimum income levels, which depend on the age and filing status of an individual. These amounts are revised every year, and 2025 is not going to be left. The IRS sets the amounts that determine one’s obligation to File US expatriates as well as American citizens who live outside the US are subject to reporting all of their worldwide income regardless of whether they are qualified for exclusion by virtue of the Foreign Earned Income Exclusion (FEIE) or any other credits.
2024 Income Thresholds (for 2025 Filing)
Here are the income thresholds based on filing status and age for 2025. These amounts are subject to change by the IRS and should be checked before you file your taxes next year.
| Filing Status | Age | Minimum Income Requirement (2024) |
| Single | Under 65 | $14,600 |
| Single | 65 or older | $16,850 |
| Married Filing Separately | Any age | $5 |
| Head of Household | Under 65 | $21,900 |
| Head of Household | 65 or older | $23,150 |
| Married Filing Jointly | Under 65 (both spouses) | $29,200 |
| Married Filing Jointly | 65 or older (one spouse) | $30,650 |
| Married Filing Jointly | 65 or older (both spouses) | $32,100 |
| Qualifying Widow(er) with Dependent Child | Under 65 | $29,200 |
| Qualifying Widow(er) with Dependent Child | 65 or older | $30,650 |
| Self-employed | Any age | $400 |
Dependent Minimum Income Thresholds (2024)
For U.S. expats, it’s essential to know the minimum income requirements if you are claimed as a dependent on someone else’s tax return.
| Age and Status | Minimum Earned Income (2024) | Minimum Unearned Income (2024) |
| Single Dependents | ||
| Under 65 (not blind) | $14,600 | $1,250 |
| 65 or older OR blind | $16,850 | $3,100 |
| 65 or older AND blind | $19,100 | $4,950 |
| Married Dependents | ||
| Under 65 (not blind) | $14,100 | $1,250 |
| 65 or older OR blind | $15,600 | $2,750 |
| 65 or older AND blind | $17,100 | $4,250 |
When Do You Need to File a Federal Tax Return as a US Expat?
Some citizens of the United States living abroad, more so those falling below the income threshold of Filing, may file federal tax returns for special considerations. The instances under which you should file federal tax returns are as follows:
- Self-Employment: If you have earned $400 or more in self-employment in the UAE or anywhere else in the Middle East, you would have to file a return entitled to self-employment income.
- Taxable Social Security Benefits: If your Social Security benefits are taxable, you would still need to file, even if your total income is below the filing thresholds.
- Foreign Bank Accounts (FBAR Requirements): If the foreign bank accounts held or opened by you lie on or above the $10,000 level for reporting purposes, then you will have to file the FBAR form regardless of whether you owe any tax or not. Failure to follow these rules might incur staggering penalties.
- Advanced Premium Tax Credit: In the case you received an advance premium tax credit due to lowered insurance premiums for health care under the Affordable Care Act, you must file a tax return to reconcile the amount received.
US Tax Considerations for Expats in UAE and Middle East
Here are your tax benefits and challenges as a US expat in UAE and the Middle East to consider in 2025:
- Foreign Earned Income Exclusion (FEIE): If you qualify for FEIE, you can exclude up to $108,700 (2025) of earned income from US tax. However, this only applies to earned income, not unearned income like dividends or rental income.
- Foreign Tax Credit (FTC): If you paid taxes to the government of your host country (e.g., UAE), you may be eligible for Foreign Tax Credit which can reduce your US tax liability and prevent double taxation.
- FBAR Filing: If you’re a US expat with financial accounts in UAE or elsewhere, you must file FBAR (FinCEN Form 114) if the total balance of your accounts is over $10,000 at any time during the year. Don’t forget to file it, or you’ll get penalties.
How to File Taxes as a US Expat in the UAE
Tax filing for US citizens in the UAE may seem complicated, but it is quite manageable when armed with the correct guidance. The basic steps for filing a tax return in 2025 are as follows:
The domain of tax filing could seem complex for US citizens in the UAE, but under the right guidance, it can be managed easily. The following is a basic checklist for filing a tax return in 2025:
- Collect all income documents: This constitutes income earned from an establishment, rental income, etc. If you qualify for excluding some income earned by yourself in the states, get the correct documents just for that purpose.
- Complete the tax forms: You must complete Form 1040, the standard US income tax form, as well as other forms such as Form 2555 for the Foreign Earned Income Exclusion or Form 1116 for the Foreign Tax Credit. Ensure any FBAR filings are included if you are under such obligation.
- Seeking help from an expert:The laws of taxation regarding US expats are complex. It’s advisable to work with a tax professional to ensure that you maximize your exclusions and credits while remaining compliant.
Staying Compliant with US Tax Laws in 2025
In 2025, knowing the minimum income amount that requires one to file taxes and your filing status is pertinent for US expats residing in the UAE and the Middle East. Taxes may not be owed in some scenarios, but one still needs to file if certain income thresholds are met or foreign financial assets are incurred. Not to forget the FBAR requirements.
If you need assistance with your tax filing, Expat US Tax can help you navigate the complexities of filing as a US expat. Whether you need to file for FEIE, handle your FBAR requirements, or ensure you meet all other filing obligations, they got you covered.
📌 PAA – People Also Ask
Q: Do I have to file taxes if I live in the UAE?
Yes, as a U.S. citizen, you must file a tax return with the IRS, even if you’re living abroad. You may be eligible for exclusions or credits to reduce your liability.
Q: What is FBAR and do I need to file it?
The FBAR (Foreign Bank Account Report) is required if you have foreign financial accounts totaling over $10,000 at any point during the year. Failure to file can result in severe penalties.
Q: How can I reduce my U.S. taxes as an expat?
You can reduce your U.S. taxes through the Foreign Earned Income Exclusion (FEIE) or the Foreign Tax Credit (FTC), both of which can significantly reduce your U.S. tax liability.