In the year of expatriation, you must file two returns — regular Form 1040 and 1040NR, and Form 8854 if you are up to date with U.S. income tax and financial reporting.
To do it, you should prepare two Tax Questionnaires and fill out Form 8854:
Create a resident TQ for the year you expatriate and select US Citizen.
Complete your first TQ and enter your income information up until the date of expatriation.
Create a non-resident (NRA) TQ for 2005, select Not a US Citizen or GC Holder, and enter "365" days spent each year in the United States.
Complete your second TQ and enter your US-sourced income information from the date of expatriation till the end of the year you expatriated.
Notes:
2005 is a random year because our system only allows one TQ per year per person.
As opposed to the resident TQ, the non-resident TQ will only require U.S.-sourced income, not worldwide income.
Download Form 8854, and fill out parts I, II, and III, if applicable. You should not leave blanks, enter information, or write N/A or "?".
Upload Form 8854 to the Documents section once completed.
Submit your questionnaires for a tax preparer review. We will check 8854 for completeness and accuracy.
❗ Important notes:
We assist with 8854 only in conjunction with the tax return (not standalone).
For pricing, please refer to the Expatriation Services article.