What Do I Have To Do To Complete My Renunciation Of US Citizenship?

expat network

What Do I Have To Do To Complete My Renunciation Of US Citizenship?

One of the members of the Expat Network community asked the following question about his duties to file to complete his renunciation of his US citizenship and we asked Greenback Expat Tax Services to respond to his query.

Question:

I renounced my US citizenship on January 17, 2019. Since moving to Europe in 2010, I have been filing my tax return online each year and have e-mail confirmations of acceptance, as well as automatic messages that my FBAR forms have been received.

With regard to form 8854, there is no section for having expatriated in January 2019. How soon after my renunciation date, should I submit the form? Since my citizenship terminated on January 17, is it necessary for me to file either a tax return (form 1040) or FBAR next year for this 17-day period in 2019?

Tabitha Paddock of Greenback Expat Tax Services answered as follows:

I hope this finds you well! Our friends at Expat Network passed along your message and I would be happy to pass along some information on the renunciation process for expats. We have helped many clients to renounce, and can certainly do the same for you.

In order to renounce you will need to have the last five years of taxes filed, and then also file Form 8854 with your final tax return.

https://www.greenbacktaxservices.com/blog/expat-taxes-renouncing-form-8854/

You will also have to be up to date on your FBAR filings (needed if you have more than 10K in foreign accounts). The final exit from the US is declared with Form 8854 and a dual status return.

If you renounced in January 2019, your final exit from the US will be filed in 2020 when the 2019 tax forms are released. The dual status return will cover the period up until you renounce (on the 1040) and also the period after you renounced (on the 1040NR portion).

I hope this helps!

For more information, check out our article: How To Renounce US Citizenship, The Costs And Implications

Moving Abroad Checklist

Initial Considerations

Will your partner be travelling with you?

If so, what will they be giving up in your present home and will they be able to continue with their career in your new home? You will need to check whether a separate visa is required for your partner to work or if your visa gives that right. If they are unable to work you will need to decide on the effect on your finances and what alternatives are available to give a fulfilling life (home business, training, voluntary work).

Are you taking family with you?

Moving with family raises many exciting opportunities, but also can create challenges. The HSBC Expat Explorer survey indicates that expat kids can take six months to settle in to their new country (see article). Getting young or even older children to prepare to move and leave their friends and family behind can be a challenge and should be thought through.

The options for education is another area that needs to be thought through.

Moving your child to a new country with a different education system can be a great opportunity to broaden their experience, but if they are close to key exams the timing can make this inadvisable. If you do take your family with you, it is important to decide between joining the local school system or choosing an international school.

Where will you be living?

Whether you will be living in a house or apartment, furnished or unfurnished, these decisions will affect what you need to take with you. The time you are planning to live overseas will also affect whether you should leave your property at home empty, rent it out or sell it. See the article Sell, Store or Ship.