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Not every individual who renounces their US citizenship will have to pay exit tax. The exit tax applies primarily to covered expatriates, a category that includes people who meet certain thresholds regarding their net worth, taxable income, and tax compliance.
Avoid Expatriate Status This is impossible for citizens, but for green card holders, the strategy is to avoid becoming a long-term resident. Leave the United States, and abandon the green card visa before the eighth year of holding that visa status.
File using Form 1040. U.S. citizens living aboard must report all worldwide income, including income earned abroad. This includes income from employment, self-employment, investments, rental properties, and any other sources of income.
Expatriation tax provisions apply to U.S. citizens who have relinquished their citizenship and long-term residents who have ended their residency (expatriated). Form 8854 is used by individuals who have expatriated on or after June 4, 2004.
Form 8854 is used by expatriates to docHub compliance with tax obligations in the 5 years before expatriation and to comply with their initial and annual information reporting obligations under section 6039G.

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Yes. If you are an American expatriate (expat), someone who moved from the U.S. and now lives abroad, you will need to file a U.S. tax return if you earned above the minimum income threshold. These gross income thresholds typically amount to the Standard Deduction amount for your filing status and age.
The exit tax is calculated based on the deemed sale of an individuals worldwide assets on the day before their expatriation. This means that the expatriate is assumed to have sold all their assets at their fair market value and would be subject to tax on any gains.
For calendar year 2023, the exclusion amount is $821,000. For other years, refer to the Instructions for Form 8854.

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