2026 US taxes: What every US expat should know
The Internal Revenue Service (IRS) officially kicked off this year's tax filing season on January 26, 2026, when it began processing electronically filed tax returns. What does this mean for Americans living in Switzerland who receive an automatic extension to file? The H&R Block Expat Tax team explains what every US expat should know to prepare for and beyond tax-filing deadlines.
US tax deadlines still apply for Swiss expats
While the automatic June 15 extension gives expats additional time to file, interest begins accruing on unpaid balances starting April 15, even if you qualify for the extension. The extension delays penalties, but not interest charges.
Recently, IRS interest rates have been as high as 7%. As a result, unpaid balances can grow quickly despite penalty relief. Filing early or making a payment by April 15 can significantly reduce overall costs.
Also, missed informational returns (such as FBAR or FATCA filings) can result in substantial penalties. Even if you're still waiting for documents, it's best to begin the process now.
The IRS is phasing out paper refund checks
The IRS has launched a multi-year effort to reduce paper refund checks and move toward electronic delivery. While paper checks are still available, the process has changed.
If you file without direct deposit information, the IRS will issue Notice CP53 requesting your banking details or a waiver. Refunds may be held for up to six weeks after processing. If no response is received, a paper check will be mailed automatically. As a result, failing to provide your direct deposit information upfront will delay your refund.
H&R Block Expat Tax Services is developing a solution to make electronic payments and direct deposit refunds easier for its clients living abroad. This option is expected to launch in the coming months, ahead of the June 15 filing deadline, although certain limitations or exceptions may apply.
New IRS crypto reporting rules for 2026
Beginning with the 2025 tax year, digital asset brokers must issue Form 1099-DA reporting gross proceeds from cryptocurrency sales and exchanges. The IRS receives a copy of this form.
For 2025 transactions, the form reports gross proceeds but not cost basis. Taxpayers remain responsible for calculating gains or losses using their own records. Even if you use foreign exchanges or private wallets and do not receive a form, crypto transactions remain taxable and must be reported.
Global data sharing is real
International financial transparency continues to expand under the Foreign Account Tax Compliance Act (FATCA). For Americans living in Switzerland, this means the IRS is likely already receiving information about your foreign financial accounts, making accurate reporting essential.
Americans abroad must comply with two separate foreign financial reporting regimes: the Report of Foreign Bank and Financial Accounts (FBAR) and Form 8938 under FATCA. Although they overlap, they have different filing thresholds, reporting standards, and submission processes.
FBAR (FinCEN Form 114)
You must file the Report of Foreign Bank and Financial Accounts (FBAR) if the total of all your foreign account balances combined exceeds $10.000 at any point during the year.
Common FBAR mistakes:
- Thinking that accounts with less than $10.000 are exempt
- Assuming it only applies to bank accounts: FBAR covers foreign bank accounts, brokerage, insurance, or annuity plans with cash value, and retirement accounts (with some exceptions)
Failing to file the FBAR can result in substantial penalties, starting at $10.000 per violation, which can quickly accumulate if multiple years are involved.
FATCA (Form 8938)
Form 8938 is filed with your federal income tax return and applies when foreign financial assets exceed higher thresholds. For Americans living in Switzerland, these thresholds are:
- Single filers: $200.000 at year-end or $300.000 at any time
- Married filing jointly: $400.000 at year-end or $600.000 at any time
Specified assets may include foreign investment accounts, foreign entities, and certain pension plans.
Beyond filing: What expats often miss
Here are some important points to take note of:
The Foreign Tax Credit vs. the Foreign Earned Income Exclusion
Americans in Switzerland may use either the Foreign Earned Income Exclusion (FEIE) or the Foreign Tax Credit (FTC) to mitigate double taxation. The foreign earned income exclusion allows eligible taxpayers to exclude a portion of earned income. The foreign tax credit provides a dollar-for-dollar credit against US tax for foreign income taxes paid.
The Foreign Tax Credit (FTC) can offer meaningful flexibility for Americans living in higher-tax jurisdictions. In Switzerland, where federal, cantonal, and municipal taxes quickly add up, many taxpayers living in Geneva and Vaud, for example, generate sufficient foreign tax credits to offset their US liability.
In some cases, claiming the FTC may also allow families with qualifying dependent children and valid Social Security numbers to benefit from the Additional Child Tax Credit (ACTC), potentially resulting in a refund. In addition, using the FTC preserves eligibility to contribute to a US-based Individual Retirement Arrangement (IRA).
That said, in certain cantons, particularly outside Geneva and Vaud, the Foreign Earned Income Exclusion (FEIE) may be more advantageous when other credits are unavailable. This is especially relevant given that Swiss second pillar (occupational pension) contributions are generally taxable for US purposes, which can affect the overall comparison.
However, switching from FEIE to FTC should be approached carefully. If you revoke the FEIE, you generally cannot re-elect it for five tax years without IRS approval. This can create planning challenges if you move to a different country or your income changes significantly. Before changing elections, it is important to evaluate long-term implications with an advisor familiar with expatriate tax.
Married to a Swiss citizen (or planning to be)?
When your spouse isn’t a US citizen, filing your taxes can get tricky. You can’t file as single, and filing jointly means you’d need to elect to treat your Swiss spouse as a US resident for tax purposes. Filing separately may seem simpler, but it could ultimately cost you more. A little planning goes a long way.
Foreign inheritances and gifts can come with strings attached
Gifts or inheritances over $100.000 from non-US persons, like a Swiss parent, must be reported on Form 3520. Gifts between spouses involving a Swiss (non-US) spouse also have limits and reporting requirements. Receiving shares in a family business or ownership in a foreign corporation can also trigger additional US reporting.
Large transfers, whether real estate, business interests, or routine financial support, can unexpectedly create reporting obligations or tax consequences. These rules are complex and easy to overlook, but with proper guidance, they’re manageable.
H&R Block Expat Tax: A great place to start
Need help figuring it all out? Living in Switzerland comes with many moving parts, and US tax obligations can be surprisingly tricky. Whether you're behind on your taxes, unsure about your filing status, or want to be sure you’re not missing anything, the Expat Tax Advisors at H&R Block Expat Tax are here to help.