US citizen abroad, no taxable income, new LLC: file 2026?
US citizen abroad, married filing jointly (spouse US citizen), one child, all abroad. Only income: VA disability and GI Bill, both excluded. New single-member Wyoming LLC (disregarded): no revenue in 2026, only startup costs; first sales may land in December. IRS ITA: no 2025 return required on these facts. 1) Same for 2026 if LLC net profit stays under $400? 2) Do the LLC's gross receipts count toward the joint threshold before expenses, so one December payment forces a return in a loss year?
Quick Answer:
Based on current IRS regulations for tax year 2026:
1. **Self-Employment Threshold:** If the LLC is a disregarded entity, its net earnings are treated as self-employment income. If your total net earnings from self-employment are **less than $400**, you generally do not have a filing requirement based solely on that income. Since VA disability and GI Bill benefits are excluded from gross income, they do not contribute to the filing threshold.
2. **Gross Receipts vs. Net Profit:** For the **self-employment tax** filing trigger, the $400 threshold applies to **net profit** (income minus allowable expenses), not gross receipts. However, for the **standard income tax** filing threshold (the MFJ threshold), **gross income** is the metric.
If your gross receipts from the LLC exceed the standard deduction for MFJ (likely over $30,000 by 2026), you must file a return even if the business shows a net loss. If gross receipts are low (e.g., a few thousand dollars) and net profit is under $400, you likely remain below both triggers.
**Note:** As a US citizen abroad, you may still wish to file to claim the Additional Child Tax Credit (if eligible) or to start the statute of limitations.
Note: This answer is provided for convenience only. It is important that you speak to a CPA about your individual tax situation.
