You’re Planning to Move Abroad. Get Your Tax Strategy Right Before You Go.
Are You Preparing to Move Abroad and Wondering About Your U.S. Tax Obligations?
-
You’re moving from California, New York, Virginia, or another “sticky” state
These states aggressively pursue former residents for taxes even after you move abroad. We help you properly sever ties, establish residency elsewhere if needed, document your exit, and file part-year resident returns correctly to avoid ongoing state tax obligations on your worldwide income.
-
You don’t know if you’ll owe U.S. taxes once you’re living and working abroad
Most expats owe $0 in U.S. federal taxes after applying the Foreign Earned Income Exclusion (up to $130,000 for 2025) or Foreign Tax Credit. We explain exactly how these protections work, help you understand which one benefits you most, and show you how to qualify from day one abroad.
-
You’re moving mid-year and need to understand dual-status filing
Your move creates a dual-status tax year where you’re taxed as a U.S. resident before your departure and potentially as a nonresident afterward. We handle the complex split-year filing, optimize which income goes in which period, file state part-year returns cor
-
You’re self-employed or freelancing and plan to work remotely from abroad
Self-employment adds complexity because you’ll owe both income tax and self-employment tax (15.3%). We explain how FEIE eliminates income tax but not self-employment tax, whether totalization agreements with your host country can reduce duplicate Social Security obligations, and quarterly estimated tax requirements for your first year abroad.
-
You need to understand FBAR and foreign account reporting requirements
Once you’re living abroad, you’ll need to report foreign bank accounts if they exceed $10,000 total. We help you understand when FBAR filing begins (your first year abroad), what counts as a foreign financial account, Form 8938 (FATCA) thresholds for foreign assets, and how to set up proper reporting systems from day one.
-
You want a pre-departure tax consultation to avoid expensive mistakes
A proactive consultation before you move can save thousands in taxes and prevent compliance issues. We review your complete situation, create a customized departure strategy, identify timing opportunities for major transactions, and give you a clear roadmap for your first-year filing obligations so you leave with confidence.
Start your U.S. expat tax return today.
"*" indicates required fields
You Need Certainty. We Provide the Blueprint. These short guides answer your most common questions about moving abroad. For personalized pre-departure planning, connect with a Greenback tax specialist.
Do I Still Have to File U.S. Taxes If I Live Abroad?
Yes. The United States taxes citizens on worldwide income regardless of where you live. However, here’s the reassuring part: according to IRS data from 2016-2021, 62% of Americans filing from abroad owe $0 in federal taxes after applying the Foreign Earned Income Exclusion or Foreign Tax Credit. You must file annually even when you owe nothing, but these powerful protections typically eliminate your tax liability entirely. Filing is required, but paying is rare. Learn more about U.S. expat tax requirements
How Do I Properly Exit My State Tax Obligations?
Moving abroad doesn’t automatically end state tax obligations. States like California, New York, Virginia, South Carolina, and New Mexico are “sticky” and will continue taxing your worldwide income if you don’t properly terminate residency. The key is establishing clear intent to leave: sell your home or establish it as a rental with a property manager, close or transfer local bank accounts, change your driver’s license and vehicle registration, update voter registration, and keep detailed documentation of your departure. Many expats establish residency in a tax-free state (Florida, Texas, Nevada, etc.) before moving abroad to create a clean break. Learn more about changing state residency while abroad
What Is the Foreign Earned Income Exclusion and How Do I Qualify?
The FEIE lets you exclude up to $130,000 of foreign earned income from U.S. taxation for 2025 ($132,900 for 2026). To qualify, you must pass either the Physical Presence Test (be physically present in foreign countries for 330 full days during any 12-month period) or the Bona Fide Residence Test (establish genuine residence in a foreign country for an entire tax year). This exclusion applies only to earned income from work—salaries, wages, bonuses, self-employment—not passive income like dividends, interest, or rental income. Learn more about the Foreign Earned Income Exclusion
Should I Use the Physical Presence Test or Bona Fide Residence Test?
Use the Physical Presence Test if you travel frequently, work in multiple countries, or are on a temporary assignment with a planned return date. It’s purely mathematical—330 days abroad in any 12-month period qualifies you. Use the Bona Fide Residence Test if you’ve made a genuine move abroad with no set return date, signed a long-term lease or bought property, and want unlimited flexibility to visit the U.S. without losing qualification. Most permanent expats prefer Bona Fide Residence once established, while digital nomads and temporary workers rely on Physical Presence. Learn more about choosing between the two tests
What Happens in My First Tax Year Abroad?
Your first year abroad will likely be a dual-status tax year where part of the year you’re taxed as a U.S. resident and part as potentially qualifying for FEIE/FTC benefits. You’ll file a part-year state return for your former state covering the period you lived there. If you move mid-year, you can claim a prorated FEIE based on your qualifying days abroad. The automatic filing extension gives you until June 15 to file (or October 15 with Form 4868). Most first-year filers benefit enormously from professional help to optimize both portions of their year. Learn more about mid-year moves and dual-status filing
Will I Pay Taxes Twice on the Same Income?
Probably not. The U.S. has two main protections against double taxation. The Foreign Earned Income Exclusion eliminates up to $130,000 from U.S. taxation entirely (best for low-tax countries). The Foreign Tax Credit gives you a dollar-for-dollar credit for foreign taxes paid (best for high-tax countries). Many expats in countries like the UK, Germany, France, or Australia pay higher foreign taxes than they would owe the U.S., so the Foreign Tax Credit eliminates their U.S. bill completely. You can even combine both benefits: use FEIE for your first $130,000, then apply Foreign Tax Credit to any excess income. Learn more about FEIE vs. Foreign Tax CreditFeatured In
People Moving Abroad Trust Greenback for Pre-Departure Planning
4.84/5
4.9/5
4.8/5
Tax Help for U.S. Citizens Moving Abroad
Moving abroad creates unique tax situations that require specialized planning before you leave and expert filing support for your first year overseas. Our services help you exit your state properly, understand your U.S. filing obligations, qualify for maximum exclusions, and avoid expensive mistakes that are difficult to fix later.
Pre-Departure Tax Consultation
Schedule a one-on-one consultation with our CPAs or Enrolled Agents before your move. We review your complete tax situation, explain first-year filing obligations, create a state exit strategy if you’re leaving a sticky state, discuss FEIE vs. Foreign Tax Credit for your specific circumstances, address timing questions about your move date, cover foreign account reporting requirements (FBAR/FATCA), and provide a customized roadmap for your first year abroad. A proactive consultation prevents costly mistakes and gives you confidence about your tax position before you leave. Our consultations start at $250 for 30 minutes.
$250+
USD
First-Year Abroad Tax Return and Dual-Status Filing
Your first year abroad creates the most complex tax year you’ll experience as an expat. We handle complete dual-status return preparation (both Form 1040 and Form 1040-NR if required), optimize which income goes in the resident vs. nonresident portion of your year, claim prorated FEIE based on your actual qualifying days abroad, and position you correctly for ongoing expat filing. First-year returns require specialized expertise to maximize benefits for both portions of your year.
$875
USD
State Tax Return Preparation and Part-Year Resident Filing
If you’re leaving California, New York, Virginia, or other sticky states, we prepare your final part-year resident state return, allocating income correctly between resident and nonresident periods. We ensure proper documentation to defend your position if audited and help you avoid ongoing worldwide income taxation by your former state. State tax exit planning combined with proper part-year filing can save thousands annually.
$185
USD
FBAR Filing for Foreign Financial Accounts
Once you’re living abroad, you’ll need to report foreign bank accounts if they exceed $10,000 total at any point during the year. We prepare and electronically submit your FBAR (Foreign Bank Account Report) to FinCEN, ensuring compliance with reporting deadlines and requirements. FBAR penalties for non-filing can be severe ($12,500+ per account), making proper filing from day one critical. Our FBAR service is $125 for up to 5 accounts.
$125+
USD
Streamlined Filing for Late or Delinquent Returns
If you’ve already moved abroad and discovered you should have been filing U.S. taxes, our Streamlined Filing Package helps you catch up on multiple years of returns with minimal or no penalties. We prepare 3 years of delinquent federal tax returns, file 6 years of FBARs, and complete Form 14653 certifying non-willful failure to file. This IRS program is designed for expats who didn’t realize their filing obligations. Our flat-fee Streamlined Filing Package is $1,750
$1,750
USD
Your Questions, Answered: US Tax Guides & Resources
Visit the Knowledge Center
Moving Abroad Tax FAQs
Can Greenback help me with pre-departure tax planning before I move abroad?
Yes, Greenback specializes in pre-departure tax consultations for Americans moving overseas. We review your complete tax situation before you leave, explain first-year filing obligations (dual-status returns, part-year state filing), create a state exit strategy if you’re leaving California, New York, Virginia, or other sticky states, discuss FEIE vs. Foreign Tax Credit for your destination country, address timing questions about your move date and major transactions, and provide a customized roadmap for your first year abroad.
A proactive consultation prevents costly mistakes like failing to properly terminate state residency, missing FEIE qualification by moving at the wrong time, or not understanding FBAR requirements. Most clients save far more in avoided tax issues than our consultation costs.
Our pre-departure consultations start at $250 for 30 minutes. Schedule your pre-departure tax consultation today.
Do I still need to file U.S. taxes after moving abroad, and will Greenback prepare my first-year return?
Yes, U.S. citizens must file regardless of where they live. Most Americans filing from abroad owe $0 in federal taxes after applying the Foreign Earned Income Exclusion or Foreign Tax Credit. Your first year abroad will likely be a dual-status tax year where you’re taxed as a U.S. resident for part of the year and can claim FEIE benefits for the portion abroad.
Greenback handles complete first-year abroad tax preparation including dual-status returns, prorated FEIE calculations, part-year state returns for your former state, and positioning for ongoing expat filing. Our dual-status returns start at $875. Most first-year filers owe little or nothing after properly applying available exclusions.
Learn more about our dual-status filing services.
Can Greenback help me properly exit my state tax obligations before moving abroad?
Yes, state tax exit planning is critical, especially if you’re leaving California, New York, Virginia, South Carolina, or New Mexico. These “sticky” states will continue taxing your worldwide income even while you live abroad if you don’t properly terminate residency.
We prepare your final part-year resident state return, allocate income correctly between resident and nonresident periods, ensure proper documentation to defend your position if audited, and help you avoid ongoing state tax on your foreign income. Many clients establish residency in a tax-free state (Florida, Texas, Nevada, Washington) before their international move to create a clean break.
Our state tax return preparation is $185, and proper exit planning can save thousands annually in avoided state taxes. Learn more about our state tax services.
Will Greenback help me set up FBAR filing for my foreign bank accounts?
Yes, once you’re living abroad and open foreign bank accounts, you’ll need to report them if they exceed $10,000 total at any point during the year. We prepare and electronically submit your FBAR (Foreign Bank Account Report) to FinCEN, calculate the aggregate balance correctly (multiple accounts combined), ensure compliance with the April 15 deadline (automatic extension to October 15), and help you understand Form 8938 (FATCA) thresholds for foreign assets.
FBAR penalties for non-filing can be severe ($12,500+ per account for non-willful violations, higher for willful), making proper filing from day one critical. Our FBAR service starts at $125 for up to 5 accounts. Setting up proper foreign account reporting prevents expensive compliance issues later.
Learn more about our FBAR filing services.
I’ve already moved abroad without filing U.S. taxes. Can Greenback help me catch up?
Yes, Greenback specializes in helping Americans who moved abroad and later discovered their U.S. filing obligations through IRS Streamlined Filing Procedures. Many people don’t realize U.S. citizens must file from abroad, and this program provides a penalty-free path to compliance.
We prepare 3 years of delinquent federal tax returns, file 6 years of FBARs, complete Form 14653 certifying non-willful failure to file, apply all available exclusions retroactively (FEIE, Foreign Tax Credits), and help you become compliant. Most clients using Streamlined Procedures face no penalties and owe $0 after exclusions are properly applied. Our flat-fee Streamlined Filing Package is $1,750.
The sooner you catch up, the better—waiting increases risk of IRS discovery and potential penalties. Learn more about our Streamlined Filing services.
Can Greenback explain whether I should use the Foreign Earned Income Exclusion or Foreign Tax Credit after I move?
Yes, choosing between FEIE and FTC is one of the most important decisions for your tax efficiency abroad. The Foreign Earned Income Exclusion (up to $130,000 for 2025) eliminates up to that amount from U.S. taxation entirely and works best if you’re moving to a low-tax country (UAE, Monaco, Singapore, Hong Kong). The Foreign Tax Credit gives you a dollar-for-dollar credit for foreign taxes paid and works best if you’re moving to a high-tax country (UK, Germany, France, Australia, Canada).
You can even combine both: use FEIE for your first $130,000, then apply FTC to any excess income. We analyze your destination country’s tax rates, your expected income level, and your specific situation (employed, self-employed, business owner) to determine the optimal strategy. This analysis is included in our pre-departure consultation and our federal tax return preparation.
How much does Greenback charge for tax preparation when I’m moving abroad?
Our pricing is transparent and flat-fee based. Pre-departure tax consultation starts at $250 for 30 minutes of strategic planning before your move. First-year abroad dual-status tax return is $875, which includes both the resident and nonresident portions of your year, prorated FEIE calculations, and complete preparation. State tax return preparation (part-year resident filing) is $185. FBAR filing for foreign accounts starts at $125 for up to 5 accounts.
If you’ve already moved and need to catch up on missed years, our Streamlined Filing Package (3 years returns + 6 years FBARs) is $1,750. Most clients find our expertise saves far more than our fees cost through proper state exit planning, FEIE optimization, and avoiding expensive compliance mistakes. Use our pricing calculator to get an estimate.
What’s the difference between the Physical Presence Test and Bona Fide Residence Test, and which should I use?
Both tests qualify you for the Foreign Earned Income Exclusion, but they work differently. The Physical Presence Test is purely mathematical—be physically present in foreign countries for 330 full days during any 12-month period. It’s best if you travel frequently, work in multiple countries, or are on a temporary assignment with a planned return date.
The Bona Fide Residence Test requires you to establish genuine residence in a foreign country for an entire tax year (no set return date, signed long-term lease or property purchase, significant ties to the foreign country). It’s best if you’ve made a permanent move abroad and want unlimited flexibility to visit the U.S. without losing qualification.
Most temporary workers and digital nomads use Physical Presence; most permanent expats prefer Bona Fide Residence once established. We help you determine which test works best for your situation and ensure you meet all requirements. This guidance is included in our pre-departure consultation and our federal tax return preparation.
You’re planning an exciting move abroad. Your U.S. tax obligations don’t have to be stressful.
