Dual citizenship
Taxes for US dual citizens
Enter your foreign account balances, where you live and your filing status: the tool says whether the FBAR and Form 8938 apply this year.
Do I file an FBAR or Form 8938 this year?
FBAR (FinCEN Form 114)
Required
| FBAR threshold | over $10,000 at any time |
| Form 8938 | Not required |
| Your 8938 limits | $50,000 on Dec 31 · $75,000 any time |
| FBAR due | April 15, automatic extension to October 15 |
Form 8938 applies only if you must file an income tax return. A second passport changes neither test: they follow the accounts you hold.
A second citizenship changes nothing on a US tax return: the United States taxes its citizens on worldwide income wherever they live, dual or not (IRS). What changes the picture is what usually comes with the passport, foreign bank accounts, a job or a pension abroad. Three rules matter. The FBAR, FinCEN Form 114, is due when your foreign accounts together exceed $10,000 at any time during the year; it is filed online with FinCEN, due April 15 with an automatic extension to October 15 (IRS). Form 8938 goes with your tax return when specified foreign assets pass $50,000 at year end or $75,000 at any time for a single filer living in the United States, four times more for a single filer abroad. And for 2026 the foreign earned income exclusion lets a qualifying worker abroad exclude up to $132,900 of salary (Rev. Proc. 2025-32).
How much foreign salary can I exclude in 2026?
Excluded from US income
$95,000
| 2026 limit | $132,900 |
| Still taxable in the US | $0 |
| Physical presence test | Met |
Claimed on Form 2555 with your return; the foreign tax credit is the other way to avoid double tax.
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Form 8938 thresholds
| Situation | Last day of the year | Any time in the year |
|---|---|---|
| Living in the US, single or married filing separately | $50,000 | $75,000 |
| Living in the US, married filing jointly | $100,000 | $150,000 |
| Living abroad, single or married filing separately | $200,000 | $300,000 |
| Living abroad, married filing jointly | $400,000 | $600,000 |
You file Form 8938 only if you must file an income tax return in the first place. Living abroad means meeting the IRS tests for a tax home abroad and enough days outside the United States; the higher thresholds then apply.
The FBAR in practice
The FBAR is a report, not a tax: it lists each foreign account and its highest balance in the year. It is filed electronically through FinCEN's BSA system, not with your tax return. Accounts include checking, savings, brokerage and some pension accounts held abroad, and accounts you can sign on, such as a parent's account in the old country. Penalties for not filing can be heavy, which is why the FinCEN page and the IRS both stress the $10,000 aggregate test.
Working abroad: exclusion or credit
An American who moves to Dublin or Milan on a second passport keeps filing a US return. Two tools prevent double taxation of salary. The foreign earned income exclusion, claimed on Form 2555, removes up to $132,900 of foreign earnings for 2026 ($130,000 for 2025) for people who pass the physical presence test, 330 full days abroad in twelve months, or the bona fide residence test. The foreign tax credit instead offsets US tax with the income tax paid abroad, which often works better in countries with higher rates than the United States. The tool below runs the exclusion.
What does not change
- Your duty to file: the filing rules are generally the same whether you live in the United States or abroad.
- Worldwide income: income from every source stays reportable, including rent or interest earned in the other country.
- Your US passport: the IRS rules apply to US citizens, whatever other passport they hold.
Before and after the passport
Nothing is due when a consulate recognizes you; the duties start with accounts and income abroad. If you plan to move, read the US rules on dual nationality and the comparison of second citizenship routes. For a US and Canadian household, the US and Canadian page covers the two tax systems.