How to Move Out of the US: Financial Checklist

US citizens and Green Card holders are required to file US federal tax returns on their worldwide income regardless of where they reside, as of 2026. This is a fundamental difference from most other countries' tax systems, which tax residents only on income earned within that country. Before you move, understand that you will likely owe US taxes on income earned abroad — though two major provisions may reduce your liability: the Foreign Earned Income Exclusion (FEIE) under IRS Form 2555, and the Foreign Tax Credit. Consulting a tax professional with international tax experience before you leave is strongly recommended. Even after your move, you will continue to have obligations similar to those covered by the IRS transcript system for domestic filers.

Foreign Earned Income Exclusion (Form 2555)

Foreign Tax Credit

If you open a bank account in another country and your total foreign financial account balances exceed $10,000 at any point during the calendar year, you are required to file a Report of Foreign Bank and Financial Accounts (FBAR) with the Financial Crimes Enforcement Network (FinCEN) using FinCEN Form 114. The FBAR is separate from your tax return and is due by April 15 each year (with an automatic extension to October 15). Failure to file an FBAR when required can result in substantial civil penalties. This requirement applies regardless of whether you owe any US taxes on income held in those accounts. For comparison, domestic accounts have their own reporting framework — see how many bank accounts you should maintain for best practices.

FATCA Reporting: Form 8938

Many Americans living abroad choose to maintain at least one US bank account for receiving US-source income, making IRS estimated tax payments, or managing US financial obligations. However, some US banks may close accounts if they learn you have become a foreign resident, due to regulatory complexity. If you intend to keep a US bank account, contact your bank before you move to confirm their policies for non-resident account holders. If you receive income from US sources such as dividends or rental payments, maintaining a US bank account typically simplifies collection and tax reporting. Knowing how long to keep bank statements applies equally to expats managing accounts from abroad.

If you have worked and paid into Social Security in the United States, you may be eligible to receive Social Security benefits even if you retire abroad. The Social Security Administration pays benefits to most eligible recipients living outside the US, though there are exceptions for certain countries with which the US does not have totalization agreements. Totalization agreements between the US and many countries help avoid dual Social Security taxation if you work for a US employer abroad. Visit the SSA website to confirm whether your destination country is on the approved payments list and whether a totalization agreement applies. For broader retirement planning, see how retirement withdrawals are calculated for US accounts.

Moving out of the US does not automatically terminate your state tax obligations. If you maintain ties to a US state — such as a registered vehicle, a driver's license, property ownership, or a mailing address — that state may continue to assert the right to tax your income. Formally establishing domicile in another country, and severing your ties to your former US state, is important for reducing state tax exposure. State rules vary significantly — some states are aggressive in asserting residency; others terminate it more easily. Consult a tax professional familiar with your specific state's rules before your move. If you own property, consider strategies for reducing rental income tax while you are overseas.