Filing U.S. Taxes While Living in France: Is It Really Difficult?

One of the most common questions Americans ask after moving abroad is: “Isn’t it difficult to file U.S. taxes if you live in France?”

The short answer: for many people, it’s actually not that complicated. In fact, if you are retired and have no French-sourced income, the U.S. tax filing process can look almost exactly the same as it would if you were still living in the United States.

Below is an overview of how the process often works for Americans living in France and what you should keep in mind when filing.

Do Americans in France Still Need to File U.S. Taxes?

Yes. The United States taxes its citizens based on citizenship rather than residency, meaning U.S. citizens must continue filing an annual U.S. tax return even if they live abroad.

For Americans in France, this typically means filing:

• A U.S. federal tax return every year

• A French tax return if you are considered a French tax resident

While this may sound complicated, in many situations the filing process remains straightforward.

If You’re Retired With No French Income

For retirees living in France who do not have French-sourced income, filing U.S. taxes is often very similar to filing while living in the U.S.

Typical sources of income might include:

• Social Security

• Pensions

• Retirement account withdrawals

• Investment income

If all of your income is U.S.-based, the forms and reporting requirements are usually the same as they would be back home.

Using Tax Software While Living Abroad

Many Americans abroad continue to file their taxes themselves using online software such as TurboTax.

For example, I personally use TurboTax to prepare my own return each year. Even with my teaching job in France, the software allows me to claim the Foreign Earned Income Exclusion, which helps prevent my French-earned salary from being taxed again in the United States.

This exclusion allows qualifying Americans living abroad to exclude a portion of their foreign income from U.S. taxation, provided they meet certain residency or physical presence requirements.

For many expatriates, this feature alone removes the biggest concern about double taxation.

Watch Out for State Tax Residency

One of the most overlooked issues for Americans moving abroad is state tax residency.

Even after leaving the United States, some states may still consider you a resident unless you clearly sever ties. These are sometimes referred to as “sticky states.”

Common examples include:

• California

• New Mexico

• New York

• South Carolina

• Virginia

These states often make it more difficult to prove you are no longer a resident for tax purposes.

If the state believes you still have ties—such as a home address, driver’s license, voter registration, or financial accounts—you could potentially still be required to file state taxes.

Why Some Expats Move States Before Moving Abroad

Because of strict residency rules in some states, some Americans relocate to a different state before moving overseas.

Two common choices are:

• Texas

• Florida

These states are popular among expats because:

• They do not have state income tax

• Establishing residency is relatively straightforward

• Their driver’s licenses can be converted into a French driver’s license under certain agreements

By establishing residency in a state without income tax, some expatriates simplify their long-term tax situation before relocating abroad.

Don’t Forget About French Taxes

Even if you earn little or no income in France, you may still be required to file a French tax return if you are considered a tax resident of France.

French tax residency is generally based on factors such as:

• Where you live most of the year

• Where your primary home is located

• Where your professional activity takes place

• Where your economic interests are centered

For many Americans living in France full-time, this means filing both U.S. and French tax returns each year, even if one of them shows little or no taxable income.

Final Thoughts

Living in France does not automatically make U.S. tax filing difficult. For many Americans—especially retirees or those with simple financial situations—the process can remain fairly straightforward.

With tools like TurboTax and tax provisions such as the Foreign Earned Income Exclusion, many expatriates are able to manage their filings without major complications.

However, understanding state tax residency rules and French tax obligations is an important part of staying compliant on both sides of the Atlantic.

Disclaimer

This article is for educational and informational purposes only and should not be considered tax, legal, or financial advice. Every individual’s tax situation is different, especially when living abroad. You should consult a qualified tax professional familiar with U.S. and French tax law before making decisions related to your personal tax filings.