In short
- U.S. citizens and green card holders living in Chile generally file a U.S. return each year if their worldwide income is above the filing threshold: $15,750 for a single filer under 65 and $31,500 for a married couple filing jointly, for tax year 2025.
- Self-employed people must file once net self-employment income reaches $400, even if total income is lower.
- If you live outside the U.S. on April 15, you get an automatic extension to June 15 to file. Any tax owed still accrues interest from April 15.
- The foreign tax credit or the foreign earned income exclusion usually prevents paying full tax in both countries on the same income.
- Foreign accounts, Chilean companies and Chilean funds bring separate reporting, such as the FBAR, Form 5471 and Form 8621.
Do I still file a U.S. return if I live in Chile?
Usually yes. The United States taxes its citizens and green card holders on their worldwide income, no matter where they live. Moving to Chile changes how your income is taxed, not whether the U.S. sees it. Your Chilean salary, rental income, interest and gains all go on your U.S. return, converted to dollars.
Whether you must file depends on your gross income and filing status. For tax year 2025, the general thresholds are:
- Single, under 65: $15,750
- Married filing jointly, both under 65: $31,500
- Married filing separately: $5. Many people married to a Chilean spouse who is not a U.S. person file this way, so the threshold is effectively zero.
- Self-employed: $400 of net self-employment income, for example as a boleta de honorarios freelancer.
Even below these amounts, filing can be worth it: to claim a refundable child tax credit, to keep a clean record, or to start the clock on IRS review periods.
When is the U.S. return due from Chile?
The normal due date is April 15. If you live outside the United States on that date, you get an automatic extension to June 15 to file, with a short statement on the return. You can extend further to October 15 with Form 4868. Interest on any tax owed still runs from April 15, so paying an estimate early is cheaper.
The Chilean return, the Formulario 22 during Operación Renta, is due in April for the previous calendar year. Since both countries use the calendar year, it helps to have the Chilean figures settled first: the U.S. foreign tax credit is based on the Chilean tax you actually paid.
How do I avoid paying tax twice?
Two tools usually prevent full double taxation. You choose one per type of income, and the choice can matter for years:
- Foreign tax credit (Form 1116): you subtract the Chilean income tax you paid from your U.S. tax on the same income. Because Chilean rates on employment income often reach or exceed U.S. rates, this often brings U.S. tax to zero and can build carryforward credits.
- Foreign earned income exclusion (Form 2555): you exclude up to $130,000 of foreign earned income for 2025 if you meet the bona fide residence or physical presence test. It covers wages and self-employment income, not rent, interest or pensions.
Chile and the United States signed an income tax treaty that is in force, but citizens are taxed by the U.S. regardless of the treaty through its "saving clause". In practice, the credit or the exclusion does most of the work. Our guide on choosing between them walks through the numbers.
What else usually goes with the return?
Living in Chile tends to add information returns, which report assets rather than tax income. Penalties for missing them can be larger than any tax owed:
- FBAR (FinCEN Form 114) when your foreign accounts together pass $10,000 at any time in the year. See foreign bank accounts.
- Form 8938 when foreign financial assets pass $200,000 at year end ($400,000 married filing jointly) for people living abroad.
- Form 8621 for Chilean fondos mutuos, which are usually PFICs. See Form 8621.
- Form 5471 if you own or run a Chilean SpA or Ltda. See Form 5471.
- State returns if you still have ties to a state that keeps taxing former residents.
A sensible first step
Write down, without sensitive numbers, which years you lived in Chile, what kinds of income you had (salary, honorarios, rent, investments, pensions), which accounts and companies you have in Chile, and which U.S. returns you have already filed. That short list is enough to know which forms apply and whether any years need catching up. If some years were missed, read catching up on U.S. returns before sending anything to the IRS.
Common questions
I only earn in Chile. Do I owe U.S. tax?
Often not. With the foreign tax credit or the foreign earned income exclusion, many people whose income is all Chilean owe no U.S. tax. You usually still have to file the return to claim that result.
Can I file my U.S. return from Chile?
Yes. U.S. returns can be e-filed from abroad, and the IRS accepts foreign addresses. You do not need a U.S. address or a U.S. bank account to file.
Do I report my Chilean salary in pesos or dollars?
In U.S. dollars. You convert using the exchange rate on the day you received the income or a yearly average rate, applied consistently. The IRS publishes yearly average rates.
Does the U.S.–Chile tax treaty mean I do not file?
No. The treaty helps with some income and with which country taxes first, but U.S. citizens and green card holders still file a U.S. return. Relief usually comes through the foreign tax credit or the exclusion.
What if I have not filed for several years?
There are IRS procedures for people who missed filings by mistake, including the Streamlined Foreign Offshore Procedures for people living abroad. Map out your history first, then choose the route.
General information, not individual U.S. or Chilean tax advice. Rules, thresholds and deadlines change; confirm them for your situation. Chile US Tax is an independent practice, not a government office.