US filing basics for Americans in Iran
Living in Iran does not terminate your U.S. federal income tax obligations. U.S. citizens, green-card holders, and certain long-term residents are taxed on worldwide income on a citizenship or residency basis, regardless of where the income is earned or where you reside. You generally must file Form 1040 (or 1040-SR) when gross income exceeds the annual IRS filing threshold, typically $15,000 to $30,000 or more depending on filing status, age, and dependency for recent tax years (exact amounts published in IRS Rev. Proc. documents and inflation-adjusted). Even if no tax is ultimately due after credits and exclusions, filing is usually required to claim benefits such as the Foreign Earned Income Exclusion (FEIE) under IRC §911 (up to $130,000 for tax year 2025 per IRS Rev. Proc. 2024-40) or the Foreign Tax Credit (FTC) for taxes paid to Iran authorities.
US tax treaty with Iran
There is no comprehensive US income tax treaty with Iran (or limited treaty coverage only). Planning typically relies on the Foreign Earned Income Exclusion, Foreign Tax Credit, and US domestic rules.
Local considerations in Iran
US persons in Iran remain subject to US worldwide-income reporting. There is no US-Iran income tax treaty, so the Foreign Earned Income Exclusion and Foreign Tax Credit are the primary tools against double taxation. FBAR and Form 8938 apply to qualifying foreign accounts and assets.