AFSA NEWS 58 JANUARY-FEBRUARY 2025 | THE FOREIGN SERVICE JOURNAL 2024 Federal Tax Provisions for the Foreign Service The American Foreign Service Association is pleased to present the 2024 Tax Guide, your first step to self-help for filing 2024 tax returns. This annual guide summarizes many of the tax laws members of the Foreign Service community will find relevant and provides information on tax issues affecting investments in real estate, capital gains, alimony, digital assets, the Foreign Earned Income Exclusion (FEIE), filings related to foreign assets and income, as well as other important topics for 2024 tax returns. Although we try to be accurate, this article reviews complex tax issues affecting many individuals differently. Readers should always follow up with IRS product pages for each form and publication mentioned, which are designed as extensions of the PDF versions and instructions. Always check the applicability and “last reviewed” dates of these resources. Even then, statutes and case law are the only completely authoritative sources. Many credits, deductions, or other calculations (e.g., depreciation, foreign asset reporting, 1031 exchanges) are best done by a competent professional. Consultation with a tax professional for complete answers to specific questions is recommended; readers cannot rely on this article or the IRS website as a justification for their position on a tax return. The federal section of this tax guide includes few changes from the prior year, because Congress has not passed any significant tax legislation affecting individuals during 2024. The 2024 federal tax section changes include updates to various tax thresholds for contributions, credits, and deductions and several tax law clarifications, among other updates. AFSA Senior Labor Management Adviser James Yorke (YorkeJ@state.gov), who assists with compiling the tax guide, would like to thank Christine Elsea Mandojana, CPA, CFP® of CEM Global Tax Planning, LLC, and her team for preparing the section on federal tax provisions. Thanks also to Hallie Aronson, Esq., and Shannon Smith, Esq., of Withers Bergman, LLP, for their contributions, particularly regarding foreign accounts and asset reporting. Filing Deadlines and Extensions The deadline for filing 2024 individual income tax returns is April 15, 2025. U.S. citizens and resident aliens living outside the United States are allowed an automatic twomonth extension for filing and paying federal taxes to June 16, 2025. To qualify for the June 16 automatic extension, a taxpayer must meet the following requirements: (1) on the regular tax return due date, the taxpayer is living outside of, and their main place of business or post is outside of, the United States and Puerto Rico (or the taxpayer is in the military or Naval Service on duty outside the United States or Puerto Rico); and (2) the taxpayer attaches a statement to the tax return specifying their qualifications for this automatic extension. Taxpayers claiming the extension should also write “taxpayer abroad” at the top of Form 1040. An additional extension to Oct. 15, 2025, may be obtained by filing Form 4868. Certain taxpayers claiming the Foreign AFSA is pleased to announce that the 2024 State Tax Guide is available to our members exclusively online. This comprehensive resource includes a detailed stateby-state tax guide along with the state pension and annuity tax guide, ensuring you have access to the latest tax information for all 50 states. We hope this shift to a digital format will be more convenient for our readers, most of whom only need access to information from a single state. The entire Federal Tax Guide will remain available both online and in print. Access the guide today at https://afsa.org/state-taxprovisions and stay informed about important state tax details for 2024. n 2024 Digital State Tax Guide
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