Green Card Holders 2026 Tax Filing Guide: Deadlines & FEIE

Green card holders must file a 🇺🇸 federal tax return as U.S. tax residents and report worldwide income, even if they live abroad or earn money outside the United States. For tax year 2025, most filers will use Form 1040, and the main deadline is April 15, 2026.

Missing international reporting forms can trigger harsh penalties, and the rules often surprise families who assumed only U.S.-source income counts. What follows is a practical, start-to-finish filing process for the 2026 filing season (tax year 2025), including what you do at each stage, what U.S. authorities expect, and how to avoid common traps.

Stage 1: Confirm you’re treated as a U.S. tax resident

For federal tax purposes, lawful permanent residents are treated like U.S. citizens for filing rules. That means you generally file the same core return and use the same income-reporting approach.

You stay in this system until you formally abandon permanent residence. The standard way is filing [<a href="https://www.uscis.gov/i-407">Form I-407</a>], Record of Abandonment of Lawful Permanent Resident Status, or having status administratively terminated. Until then, worldwide income reporting applies.

A reliable starting reference is IRS Publication 519, U.S. Tax Guide for Aliens, which lays out residency rules and tax treatment in plain terms: IRS Publication 519.

Stage 2: Mark the calendar — filing, payment, and account-reporting deadlines

For tax year 2025 (filed in 2026), the standard federal deadline is April 15, 2026. Most Green card holders file by that date, the same as U.S. citizens.

If you live abroad:
– You receive an automatic filing extension to June 15, 2026, but any tax due is still due April 15, 2026.
– Interest can apply to late-paid tax, even when the return itself is timely under an extension.

You can request a further extension to October 15, 2026 by filing [<a href="https://www.irs.gov/forms-pubs/about-form-4868">Form 4868</a>] on time.

Foreign account reporting deadlines:
– FBAR (FinCEN Form 114) is due April 15, 2026, with an automatic extension to October 15, 2026.
– Filed electronically through the BSA system: FinCEN FBAR BSA E-Filing

State returns are a separate layer. Some states tax worldwide income for residents and use different residency tests than the IRS. A move abroad does not automatically end state tax residency.

Quick deadlines table

Important: Tax due and return due can be different dates. Interest runs on unpaid tax from the original due date.

Stage 3: Gather documents early, including foreign records

Collect documents before you start software or hand forms. International filing problems often come from missing statements, missing exchange-rate records, or incomplete bank details for reporting forms.

Build a file that includes:
– U.S. wage and tax forms (W-2s, 1099s)
– Foreign pay statements and year-end summaries
– Proof of foreign taxes paid (receipts, assessments, withholding records)
– Bank and brokerage statements for foreign accounts, including highest balances
– Prior-year returns and prior-year foreign reporting filings

Keep notes on dates you moved, where you lived, and the days you were abroad. Those details drive major items like foreign income treatment and eligibility for certain relief provisions.

According to analysis by VisaVerge.com, the biggest filing mistakes for permanent residents abroad are not underpaying tax, but failing to file the right international reporting forms on time.

Stage 4: Choose between foreign income relief tools (and document the choice)

Many Green card holders face double taxation risk when a foreign country taxes the same income the United States taxes. Two common tools address that; the “best” option depends on your income mix and foreign tax rate.

Foreign Earned Income Exclusion (FEIE)

• Use [<a href="https://www.irs.gov/forms-pubs/about-form-2555">Form 2555</a>] if you qualify under the bona fide residence test or the physical presence test.
• The cited FEIE limits: $130,000 for tax year 2025 (filed in 2026) and $132,900 for tax year 2026 (filed in 2027).
• FEIE applies to earned income (salary, self-employment earnings). It does not exclude investment income and many other items.

Foreign Tax Credit (FTC)

• Use [<a href="https://www.irs.gov/forms-pubs/about-form-1116">Form 1116</a>] to claim a credit for foreign income tax paid.
• FTC can be preferable when foreign tax rates are higher or when you want to preserve U.S. tax attributes tied to income levels.

Some filers use both approaches for different income categories when allowed. Compare outcomes before filing, and keep backup records showing your computations.

Stage 5: Handle foreign accounts and foreign assets (FBAR and FATCA)

These filings don’t “feel” like tax forms, but U.S. authorities treat them seriously.

FBAR (FinCEN Form 114)

• File if your foreign financial accounts exceeded $10,000 in the aggregate at any time during the year.
• “Aggregate” means adding accounts together, not account-by-account.
• Include accounts you control or have signature authority over, when required.

FATCA (Form 8938)

• File [<a href="https://www.irs.gov/forms-pubs/about-form-8938">Form 8938</a>] with your tax return if you meet IRS thresholds for specified foreign financial assets.
• Thresholds vary by filing status and whether you live in the U.S. or abroad. Taxpayers abroad generally have higher thresholds.

FBAR and FATCA are not duplicates; many taxpayers must file both. Treat this stage as a separate project: list every account, capture highest balances, and keep supporting evidence.

Stage 6: Prepare and file the federal return (Form 1040) with the right schedules

For most lawful permanent residents, the core federal return is Form 1040, and the backbone rule is worldwide income reporting. This includes wages, self-employment income, rentals, dividends, interest, pensions, and similar items from any country.

Common attachments include:
– Schedule B when you have more than $1,500 of interest or dividends
– Schedule C and Schedule SE if you are self-employed

Self-employed filers often owe self-employment tax on net earnings unless a totalization agreement with the foreign country applies. Those agreements are technical—read them carefully before assuming an exemption.

The IRS adjusts filing thresholds and deductions each year. The guidance cited these 2025 standard deduction amounts used for 2026 filing:
– $15,750 (single)
– $31,500 (married filing jointly)
– $23,625 (head of household)

Verify year-specific figures before you file.

Stage 7: Add state returns only where they’re truly required

State tax issues can become the costliest surprise, especially for people who kept U.S. ties (home, driver’s license, voter registration) while working abroad.

Start with one question: did your state still treat you as a resident for tax purposes during 2025? If yes, the state may tax worldwide income and demand separate forms, even if you were physically abroad most of the year.

Keep clear evidence of where you lived and worked. State audits often hinge on paper trails, not intentions.

Stage 8: If you’re behind, use formal compliance pathways instead of guessing

If you missed returns or foreign account filings, do not patch it with random late forms. The IRS has structured options to come into compliance.

• The Streamlined Domestic or Streamlined Foreign Offshore Procedures generally require filing three years of returns and six years of FBARs for streamlined foreign filings.
• The cited guidance reported the IRS approved 86% of streamlined filings in a recent year and waived millions in penalties.

Eligibility depends on facts and documentation, including showing non-willful conduct. Treat that documentation as seriously as the forms themselves.

Stage 9: Plan carefully if you’re giving up the green card (exit tax risk)

Surrendering permanent residence does not automatically end tax obligations. If you are a long-term permanent resident (holding a green card in at least 8 of the past 15 years), you may face expatriation or exit tax rules tied to unrealized gains.

The immigration step that generally formalizes abandonment is filing [<a href="https://www.uscis.gov/i-407">Form I-407</a>]. Tax consequences can be large and timing-sensitive. Coordinate the immigration filing with tax advice before you sign and submit.

Stage 10: Know what enforcement looks like, and keep records that defend you

International reporting failures carry penalties that can dwarf the tax due.

• For FBAR, cited guidance described willful civil penalties of up to the greater of $100,000 or 50% of the account balance per violation.
• Non-willful penalties are lower, but still serious.

The IRS and FinCEN coordinate enforcement around foreign accounts. Beyond penalties, compliance problems can affect immigration matters, renewals, or travel.

Keep proof of filing and backup records for at least three to six years, and longer when you have foreign asset reporting. Save confirmation pages for FBAR submissions and copies of attached international forms. A complete record file often ends questions quickly.

Key takeaway: Treat your filing as a timeline, not a single day. Start early, document your choices, file Form 1040 on time, and build your plan around April 15, 2026 so deadlines don’t control you.