Government Shutdown: What Expats Need to Know

+ Oct 15 tax deadline

THIS WEEK ABROAD

The U.S. government has entered sleep mode, potentially disrupting some expat-related services. Plus, the October 15 deadline for expat tax filing is almost here.

We have everything you need to know in this week’s newsletter.👇

Must-Know News

🏛️U.S. GOVERNMENT SHUTDOWN: WHAT EXPATS NEED TO KNOW

One underrated perk of the American expat life is putting thousands of miles between you and political squabbles back home. Unfortunately, you can’t always escape the effects.

Last week, the U.S. government entered a partial shutdown as the two major political parties clashed over funding measures. For expats, most essential operations remain funded, but other services have been suspended or slowed.

What Still Works

The good news: essential services continue. Social Security benefits are still funded, so retirees abroad should see their payments deposited on time. Embassies and consulates remain open for core citizen protection.

⏳ Expect Delays

Other services are slowed or suspended. Passport renewals and visa processing could take longer, especially if staff are furloughed. Consulates may be open but with fewer employees, making it harder to secure notarial services, emergency help, or appointments.

🛂 Immigration and Travel Impact

If you’re sponsoring a foreign spouse or family member, agencies like USCIS and the State Department could experience backlogs. Air travel is also under pressure: TSA and air traffic controllers continue working but without pay, raising the risk of staffing shortages and travel delays.

📌 What Expats Should Do

For most Americans abroad, day-to-day life won’t shift dramatically. But if you depend on U.S. government services, prepare for longer wait times. Keep your passport valid, plan ahead for consular appointments, and follow local embassy updates for the latest guidance.

Video of the Week

⚠️AVOID A TAX AUDIT IN 2026

As we enter the final quarter of 2025, it’s time to start thinking about everyone’s favorite subject—taxes.

A few high-tax U.S. states, such as New York and California, are particularly aggressive when it comes to auditing former residents who have moved overseas or to another U.S. state. If you plan to terminate your tax residency next year, it’s time to start crafting your escape plan.

In this video, we cover red flags that can trigger a tax audit for expats and nomads, as well as what you can do to prepare and protect yourself from overreach by tax authorities.

Money & Tax Corner

OCTOBER 15 EXPAT TAX DEADLINE APPROACHING

If you’re an American living abroad, October 15 is the final deadline to file your 2024 U.S. tax return. Most expats automatically receive a two-month extension to June 15, but if you requested an additional extension, it runs out by next week.

So what should you be doing now?

  1. Gather your documents. Make sure you have your W-2s, 1099s, foreign income statements, bank account details, and any information on investments or retirement accounts. Expats also need to track housing allowances, moving expenses, and self-employment income.

  2. Review FBAR and FATCA rules. If your foreign financial accounts exceeded $10,000 at any point during the year, you must file an FBAR by October 15. Higher thresholds may also trigger FATCA Form 8938.

  3. Maximize exclusions and credits. Many expats qualify for the Foreign Earned Income Exclusion (FEIE), the Foreign Housing Exclusion, or foreign tax credits. These can drastically reduce or even eliminate your U.S. tax bill.

  4. Decide whether to DIY or hire help. Filing from abroad is complex. If you’re unsure, now is the time to engage a tax professional who understands expat rules.

Missing the deadline can mean late filing penalties, even if you don’t owe U.S. tax. That’s why it’s critical to file on time, even if you’re still waiting on foreign paperwork.

👉 Bottom line: Don’t wait. October 15 is your last chance to stay compliant for 2024.

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