You Must File US Taxes — Even Living in France
The US taxes based on citizenship. Even if you pay French taxes on all your income, you still owe a US tax filing. Failure to file can result in penalties up to $10,000+ per year.
Your Key Annual Tax Obligations
Form 1040
Annual US income tax return. Required even if you owe $0 due to foreign tax credits. Deadline: June 15 for overseas Americans (auto-extension to Oct 15 available).
FBAR (FinCEN 114)
Report foreign bank accounts if aggregate balance exceeded $10,000 at any point during the year. Filed separately from 1040. Automatic extension to Oct 15.
FATCA Form 8938
Report specified foreign financial assets if they exceed $200K (filing abroad). Filed with your 1040. More comprehensive than FBAR.
Form 2555 — FEIE
Foreign Earned Income Exclusion. Exclude up to $126,500 of earned income from US taxation. Must meet bona fide residence or physical presence test.
Foreign Tax Credit (Form 1116)
Claim a dollar-for-dollar credit for French taxes paid. Often more beneficial than FEIE for high earners.
Form 5471 / 8865
If you own a French company (SAS, SARL, etc.) you may have additional reporting obligations — even as a minority shareholder.
US–France Tax Treaty Key Points
- France and the US have a comprehensive tax treaty (in force since 1995, updated 2009) to prevent double taxation
- French income taxes paid can generally be credited against US tax liability via the Foreign Tax Credit
- The treaty covers income, capital gains, dividends, interest, pensions and social security
- French Social Security contributions may be excluded from US Social Security under the totalization agreement
- Certain French investment vehicles (like PEA) may still be taxable in the US — consult a specialist
- The treaty does NOT eliminate your obligation to file a US return — it only prevents double taxation on amounts owed
FEIE vs. Foreign Tax Credit — Which is Better?
The FEIE is simpler but may trigger the "foreign tax credit killer" rule. For most salaried employees in France (where tax rates are high), the Foreign Tax Credit often results in lower total taxes. Get professional advice.
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