Kateryna Dzhevaga·IRS CAA · Authorized IRS e-file Provider·Federal practice (all 50 states)·EN · RU · UK
Leaving the US
Leaving the US for good — what to do about your taxes
The tax consequences depend on your status. Find your situation below — each has its own steps.
TL;DR
Bottom line: the exit tax (§877A) only applies to US citizens and long-term green-card holders (8 of the last 15 years). If you're on U4U, a visa, or have had a green card for under 8 years, the exit tax does NOT apply to you. But you still need to file a final return for the year you leave (often dual-status), and the US likely owes many people a refund.
📅 Updated: 2026
Find your situation
Tap your card — the steps and the tax treatment differ sharply.
U4U / temporary status
U4U, humanitarian parole, visas, green card under 8 years
Green card
Green-card holders giving up their status
Citizenship
US citizens renouncing the passport
Temporary status: U4U, parole, visas, green card under 8 years
Good news: the exit tax does NOT apply to you — it's only for citizens and long-term green-card holders. But you still need to close out your tax obligations, and the US often owes you a refund.
- Determine your status for the year you leave: if you spent enough days in the US (substantial presence test) you're a resident alien and file Form 1040; if not, Form 1040-NR.
- The year of departure is usually a dual-status return: resident for the part of the year before you leave + nonresident after (see common steps below).
- Claim your refund. If tax was withheld from your pay and your income was modest, the US probably owes you money — and you won't get it without filing.
- FBAR (FinCEN 114) — if your foreign accounts together exceeded $10,000 at any point in the year you leave, you still must file it.
- Form 8854 and the exit tax do NOT apply to you — you're not a covered expatriate.
- After leaving: if US-source income continues (rent, dividends, payouts) you file Form 1040-NR; passive income is taxed at 30% (or less under a treaty).
Green card: giving up your status
The key question is how long you've held the green card — that decides whether the exit tax applies.
- You formally give up status via USCIS Form I-407 (Record of Abandonment of LPR Status). The I-407 filing date fixes your residency-termination date.
- Held the green card under 8 years — the exit tax does NOT apply; proceed like 'temporary status' above (dual-status return, refund, FBAR).
- Were an LPR in 8 of the last 15 tax years — you're a long-term resident, and giving up the card triggers the exit-tax rules (§877A), same as citizens.
- A long-term resident must file Form 8854 and certify 5 years of tax compliance — otherwise you automatically become a covered expatriate.
- 'Leave and forget' the green card is dangerous: until status is formally terminated, the IRS treats you as a resident and expects Form 1040 on worldwide income.
- The year you give up status is a dual-status return (see common steps below).
US citizenship: renouncing the passport (exit tax)
Renouncing citizenship triggers the §877A exit-tax rules. How heavy it is depends on whether you're a 'covered expatriate.'
- Form 8854 (Initial and Annual Expatriation Statement) is mandatory. Without it: a $10,000 penalty and automatic covered-expatriate status.
- You're a covered expatriate if ANY applies: net worth ≥ $2,000,000; OR 5-year average net income tax > $206,000 (2025); OR you can't certify 5 years of compliance on Form 8854.
- A covered expatriate pays a mark-to-market exit tax: all property is treated as sold at fair market value the day before expatriation; the net gain is reduced by the $890,000 exclusion (2025) and taxed.
- Not a covered expatriate (most people) — no exit tax, but you still file Form 8854 and a final return.
- The expatriation date (renunciation / CLN date) fixes the math: the 5-year period, net worth, and the property-valuation date.
- Special rules apply to deferred pensions, eligible deferred compensation, and trusts — handled case by case.
Common steps — for almost everyone
Whatever your status, leaving usually means:
1
Final / dual-status return for the year you leave
The year you leave you're usually dual-status: resident until your departure date (worldwide income) + nonresident after (US-source only). You file Form 1040 or 1040-NR marked 'Dual-Status Return.' No standard deduction, and usually no joint return.
2
Departure permit (sailing permit)
By law most departing aliens must get a 'certificate of compliance' before leaving — Form 1040-C or the short Form 2063 — at an IRS office (by appointment, 844-545-5640, two weeks before departure). F/J/M students are exempt; U4U, work visas, and green-card holders are NOT. It's rarely enforced in practice, but it is a legal requirement (details in Pub 519).
3
Claim your refund and close out withholding
The US owes many departing taxpayers a refund (over-withheld pay). Without a return, that money is lost. Provide a foreign address or account to receive it.
4
FBAR and FATCA for the resident part of the year
FBAR (FinCEN 114) if foreign accounts together exceeded $10,000; Form 8938 if assets are over the threshold. For the part of the year you were a resident, these still apply.
5
US-source income after you leave
If US-source income continues after you leave (rent, dividends, real-estate sale, payouts), you file Form 1040-NR; passive (FDAP) income is taxed at 30% or less under your country's treaty.
Departure permit: Forms 1040-C and 2063 — details
This is the form that produces the sailing/departure permit. File it at an IRS office by appointment (844-545-5640) two weeks before departure, no earlier than 30 days. Which of the two depends on your income.
Form 2063
Short, no tax computation. For those with no taxable income for the year, OR residents whose departure won't hinder tax collection.
Form 1040-C
The full form — for everyone else. Reports all income received and reasonably expected through the departure date; the tax on it must be paid (or post a bond).
- It is NOT the annual return: you still file Form 1040 or 1040-NR at year-end, and tax paid on the 1040-C is credited against it.
- No refund is issued at departure. If you're owed a refund, you claim it on the year-end return.
- If you intend to return and your departure doesn't jeopardize collection, you can get the permit via Form 1040-C without paying this year's tax (but you must file prior returns and pay those).
- Nonresident spouses can't file jointly; if one spouse is a resident, a joint 1040-C may be possible under conditions.
What to bring to the appointment: passport + green card/visa; the last 2 years' returns and payment receipts; an employer statement of wages and tax withheld from Jan 1 to the departure date (for the self-employed, an income/expense statement); proof of estimated payments; SSN/ITIN; your ticket (proof of departure date); documents for deductions and dependents.
Form 1040-C on IRS.gov ↗How to freeze your credit (credit freeze) — step by step
A freeze blocks anyone from opening new credit or cards in your name in the US. While you're abroad and not watching your reports, it's the best protection against identity theft. By law it's free and does NOT affect your credit score. You must do it at each of the three bureaus SEPARATELY — lenders may check any one.
What you'll need: SSN or ITIN, date of birth, current US address, and identity verification (sometimes questions from your credit history). Have an email and phone handy to create the account.
Do it at all three bureaus (online is instant and free):
1
Equifax
Open the freeze page ↗or by phone: 888-298-0045
2
Experian
Open the freeze page ↗or by phone: 888-397-3742
3
TransUnion
Open the freeze page ↗or by phone: 800-916-8800
+
NCTUE
Not a bureau, but worth freezing too: utility and telecom providers use this registry when you open an account.
Open the freeze page ↗or by phone: 866-349-5355
- Create an account on the bureau's site (or log in) → verify your identity → turn on the Security Freeze. Online takes effect immediately.
- BE SURE to save the login and password (and for Experian, the PIN) for all three bureaus. Without them you can't unfreeze later if you ever need US credit again.
- To temporarily lift it (when you apply for credit/a card/a lease) — log in and remove the freeze for a date range or for a specific lender. It then re-applies.
- Also: if you have minor children, freeze their credit too (a common fraud target). You can also place a free fraud alert, but a freeze is stronger.
Before you leave — practical checklist (beyond taxes)
These steps prevent problems that are hard to fix once you're already abroad:
1
Keep a US bank account and one credit card open
You'll want them for the IRS refund, paying any remaining bills, and to avoid zeroing out your credit history. Note: some banks and brokerages close accounts with a foreign address — check their policy before you go.
2
US mailing address + update your address everywhere
The IRS and banks send important items by paper mail (letters, refund checks). Set up mail forwarding or use a trusted person's address / a virtual mailbox. Update your address with the IRS (Form 8822) and all banks/brokers.
3
Keep a US phone number
Many banks and the IRS require a US number for 2FA and verification. Get a Google Voice number or keep your existing one — otherwise you can lose access to your own accounts from abroad.
4
Decide what to do with retirement accounts (401k / IRA)
Don't cash out impulsively: a withdrawal = tax + 10% penalty (before age 59½) + 30% withholding for nonresidents. Options are to leave it, roll it over, or draw it down on a plan. Discuss before leaving.
5
Cancel subscriptions and autopay
Close US subscriptions and recurring charges so a card doesn't go negative and debts don't pile up while you're abroad.
6
Grab your documents in advance
Download and save: prior tax returns, W-2/1099s, your SSN card, bank statements. They're much harder to retrieve from abroad later.
This is a simplified orientation, not tax advice. The exact steps depend on your status, dates, and income — best to check with a professional before you leave.
Leaving and unsure about taxes?
Message me on Telegram — we'll sort out your status: what to file, how to claim your refund, and whether the exit tax applies to you.
Message on TelegramFrequently asked questions
About leaving the US and taxes
No. The exit tax (§877A) only applies to US citizens and long-term green-card holders (8 of 15 years). U4U and other temporary statuses are not subject to it. But you still need to file a final return, and the US often owes you a refund.