What is considered "Income" by the IRS for Americans abroad?

If you’re a U.S. citizen or green card holder living abroad, the IRS generally expects you to report your worldwide income, no matter where you live, where you’re paid, or which currency you’re paid in.

For the 2026 filing season, covering the 2025 tax year, this usually includes:

• Wages and salaries: Your salary, bonuses, commissions, and other employment income. Some of this may be protected by the Foreign Earned Income Exclusion, up to $130,000 for 2025.
• Self-employment income: Freelance work, consulting, side income, or business income. If you work for yourself, even a relatively small amount of net profit can create a U.S. filing requirement.
• Rental income: Rent from property in the U.S. or abroad. You can usually deduct related expenses, but rental income is not covered by the Foreign Earned Income Exclusion.
• Interest and dividends: Income from bank accounts, investments, shares, funds, or other financial assets, including foreign accounts.

The important thing to remember is that the IRS wants to see the gross amount before foreign taxes are taken out. But reporting income does not automatically mean you’ll owe U.S. tax. Many Americans abroad use tools like the Foreign Earned Income Exclusion or the Foreign Tax Credit to reduce, and sometimes eliminate, their U.S. tax bill.