Moving abroad? A U.S. tax checklist for before you go

1Before you leave

1. Leave your state properly. Give up or change your driver's license and car registration, sell or rent out your home, and keep proof of the move. Some states, like California, make it hard to stop being a resident. See state taxes after you move abroad.
2. Keep a U.S. bank account and a credit card. Some U.S. banks and brokers restrict accounts once your address is foreign, so ask before you move. More on U.S. accounts from abroad.
3. Check your Social Security. If you'll work abroad, a social security agreement may decide which country's system you pay into. See self-employment tax abroad.
4. Think about your home. The U.S. can exclude up to $250,000 of gain on your main home ($500,000 for couples) if you lived in it for two of the five years before the sale. Rent it out for too long and you can lose that.

2Your first year abroad

• Your first return covers both countries. Foreign wages can usually be excluded for the part of the year you qualify for the foreign earned income exclusion.
• Not qualified yet when the return is due? Form 2350 extends the deadline until you meet the 330-day or residence test.
• Start counting days now. Keep a simple record of every trip, so you can show 330 full days abroad. Our 330-day counter does the math.
• Learn your new country's tax year. In the UK, Australia, New Zealand, India, Hong Kong and South Africa it isn't January to December.
• File a part-year state return for the year you leave, if your state taxes income.

3Money and investments

• Don't buy local investment funds without advice. Most foreign funds and ETFs are PFICs, with heavy U.S. tax and reporting.
• Know the FBAR rule. Once your foreign accounts add up to more than $10,000 at any time in a year, you file an FBAR listing all of them, even small ones.
• Ask before joining a local pension or savings plan. Plans that are tax-free locally can be taxable for the U.S.

The most expensive mistakes are made in the first year.

4Every year after

• Your return is due June 15 when you live abroad, with an extension to October 15 available. Any tax due is still due April 15. All the dates: expat tax deadlines.
• File your FBAR by October 15.
• Keep each year's local tax return and year-end statements together. That's most of what your U.S. return needs.

If you ever fall behind, the Streamlined Foreign Offshore Procedures let Americans abroad catch up with no penalty, if they qualify. See every IRS catch-up option for expats.

Common questions

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