Non-military living overseas working overseas with non-U.S. citizen spouse

[goldsonj2]

I have a complex, unique situation. I have filed taxes through the years that I've worked for a U.S. company (and lived in the U.S.) and would owe taxes. For the past 2 years, I have not been working for a U.S. company and have been living overseas (non-military). Part of that time, I was unemployed, the other part I was working self-employed online and working for companies in my current country of residence. My husband is not a U.S. citizen but we are currently still in the process of getting his permanent residence card. Our daughter is also in the process of getting her U.S. citizenship (was born overseas). Will I be penalized if I continue to wait for both of these processes to be complete before I file for the past 2 years? Or should I just file now?

[LoraineG]

The short answer to this is file as soon as possible.  The IRS says:

If you are a U.S. citizen or resident living or traveling outside the United States, you generally are required to file income tax returns, estate tax returns, and gift tax returns and pay estimated tax in the same way as those residing in the United States. Your income, filing status, and age generally determine whether you must file a return. Usually, you must file a return if your gross income from worldwide sources is at least the amount shown for your filing status in the filing requirements table in chapter 1 of Publication 54, Tax Guide for U.S. Citizens and Resident Aliens Abroad.

So it seems that you haven't filed for the last 2 years.  For tax year 2022 you are already looking at a failure to file, even if you claimed an extension, because it was due in October 15th, 2023.  

I'm sharing these resources with you regarding US citizens living abroad:  

https://www.irs.gov/individuals/international-taxpayers/us-citizens-and-residents-abroad-filing-requ...

https://www.irs.gov/individuals/international-taxpayers/us-citizens-and-resident-aliens-abroad-where...