// Asked Question
Frequently asked questions
Do I need to file a tax return?
YES, if you live and work in the United States.
For 2025, if you are unmarried and under 65, you must file a return if your income exceeds the standard deduction of $15,750; for married couples filing jointly, it is $31,500.
For self-employed individuals, if you earned more than $400 in net income.
Even if your income is below the threshold, filing may be beneficial to receive a refund of withheld taxes or credits such as the Earned Income Tax Credit (EITC).
The IRS offers a “Do I Need to File a Tax Return?” tool on its website for a quick check — just enter your information and it will determine whether you need to file.
What is the status of my application?
Your filing status determines your tax rates, deductions, and credits—there are five options:
- Single
- Married Filing
- Jointly
- Married Filing Separately
- Head of Household
- Qualifying Surviving Spouse
For 2025, your status is determined based on your situation as of December 31. Use the IRS tool “What is My Filing Status?” to select your status—it takes into account marriage, divorce, and dependents to help you maximize your refund.
Who can I claim as a dependent?
A dependent is a qualifying child or qualifying relative who has lived with you for at least six months, is financially dependent on you, and does not have a high income. Claiming a dependent gives you access to credits such as the Child Tax Credit of up to $2,200 per child in 2025 and reduces your taxable income.
Check with the IRS’s “Whom May I Claim as a Dependent?” tool to verify based on SSN and residence.
Do you have to pay tax on Zelle money transfers?
It all depends on the nature of the transfer:
Personal transfers (e.g., gifts to friends) are usually not taxed, but business income or payment for goods/services are, and you are required to report them yourself.
Zelle does not require automatic reporting to the IRS, and the platform itself does not send 1099-K forms. However, this does not mean that all transfers are completely tax-free.
When are Zelle transfers NOT taxable?
- Personal transfers: Money from friends/family for dinner, birthdays, debt repayment, or gifts is not income. The IRS considers them “non-taxable.” There is no need to declare them.
- Gifts: If you receive a gift >$18,000 from one person in a year (annual gift tax exclusion for 2025), the giver must file Form 709, but the recipient (you) does not pay anything or report it.
When are Zelle transfers TAXABLE?
- Business income: If you receive money for goods, services, freelance work, or sales (e.g., on eBay), it is considered taxable income. You must include the amount in your tax return and pay tax at your rate (10–37%, depending on your income).
- Reporting obligation: Zelle explicitly states: “If payments are taxable, it is your responsibility to report them to the IRS.” Penalties for non-payment can be up to 20% + interest.
What can you do to avoid mistakes?
- Keep records: Separate personal and business transactions in the Zelle app (it allows you to add notes). Keep receipts/invoices.
- Tip: If you use Zelle frequently for business, consider switching to platforms with 1099-K — they simplify reporting.
Do I have to pay taxes if I live abroad (as an expat)?
Who has to pay taxes and why?
- All US citizens and residents are required to report their income—salary, investments, pensions—even if they live in Europe or Asia.
- Who has to file? If your gross income exceeds the standard deduction: $15,750 for singles, $31,500 for married couples.
- If you are self-employed and your income is >$400.
- Why? To avoid penalties (up to 25% of the debt) and stay on good terms with the IRS. Plus, filing opens the door to benefits.
Declaration submission deadlines: Expats have more time
- Main deadline: April 15, 2025 for 2024. But if you live abroad or are in the military, you get an automatic 2-month extension until June 15, 2025 (or June 16 if it’s a holiday).
- With Form 4868, until October 15.
What must be reported?
- FBAR (FinCEN Form 114): All foreign accounts >$10,000. Even if there is no income.
- Form 8938: If foreign assets (stocks, real estate) >$200,000 for singles or $400,000 for married couples (at the end of the year).
- FATCA: Foreign banks report your accounts to the IRS themselves, so there is no point in hiding them.
- Gifts and inheritance: If you receive >$18,000 from one person, the donor is responsible for reporting it.
What is FBAR: Foreign Bank Account Report
FBAR (Report of Foreign Bank and Financial Accounts) is not a tax, but a “list of foreign money” for the IRS and FinCEN (part of the US Department of the Treasury). It must be submitted if you have accounts abroad.
Who must file an FBAR?
- US citizens, residents (with a green card), companies, partnerships, trusts, or estates (inheritance). It does not matter whether you live in the US or abroad.
- Condition: If you have a financial interest in at least one account abroad. And the total amount in all such accounts on any day of the year exceeded $10,000.
What exactly should be reported?
- Accounts: Bank, brokerage, mutual funds, stocks, bonds — anything in a foreign bank or financial company.
When and how to file?
- Deadline for 2025: April 15, 2026. But automatically extended to October 15, 2026.
- Submitted electronically, separately with your tax return (Form 1040).
What happens if you don’t file? Penalties!
- Civil: Up to $16,000+ per account or 50% of the balance if intentional. Plus late fees.
- Criminal: Up to 10 years in prison + fines if intentionally concealed.
Do you need to report cryptocurrency to the IRS?
Yes, definitely. The IRS considers cryptocurrency (Bitcoin, Ethereum, NFT, and other digital assets) to be “property.” Any transaction involving it is a “taxable event” and must be reported, even if you didn’t earn or lose anything. There is no minimum threshold: even small transactions count. This rule applies to all US citizens and residents, including expats.
What exactly do you need to report?
- Sales and exchanges: Selling cryptocurrency and NFTs for dollars, exchanging BTC for ETH — this is capital gain (profit) or loss (loss).
- Receiving as income: Mining, staking, airdrops, crypto salaries, or payments for services are ordinary income, like a salary.
- Other: Gifts >$18,000 (the giver reports) or lost crypto.
- Not reported: Simply storing or transferring between your own wallets. 2.
Penalties for non-compliance
- Failure to file: 5% per month of the debt (max. 25%) + interest.
- For FBAR: Up to $16,000+ per account.