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FBAR and 709 for non-citizen who leaves the USA

I am non-US citizen who worked in the USA for some years and in mid-year is moving to another country permanently. I transfered some of savings to the following foreign accounts: about 20k$ to my relatives and the same amount to my own account. The deadline for submission of FBAR and Form 709 is on april next year however i am terminating my resident alien status before that date, moreover i can't file form 709 for the year 2021 now even if i wished to because it is to be submitted starting Jan 1, 2022.

I don't want to leave the issues behind as intend to maintain my US bank accounts active while i am overseas. What to do?

2 Replies
pk
Level 14
Level 14

FBAR and 709 for non-citizen who leaves the USA

@flyer56a ,  which country are you emigrating to?  Are you a citizen of that country ?  Are you married and filing jointly with your spouse?  If married, is he/she also a non-citizen  of the USA ?

 

Assuming that you complete all the exit procedures  ( abandon your residency on your  departure ) etc.,  then as a Non-Resident your only tax liability  ( and need to file a return ) is for any and all  US sourced/connected income.  A bank account that  earns/pays  interest  is income  sourced  to US and therefore may require  a 1040-NR return  ( Note that TurboTax does not support this form).  If you are  leaving the US during 2021 ,then assuming that you were earning US sourced income till that date, you could file as a dual status person ---- form 1040 covering world income till that date  and a 1040-NR for the rest of the year.

 

The FBAR requirement only applies till the date of  renunciation of residency -- there after there is no requirement for FBAR.   However filing an FBAR  does not hurt and has no tax implications.

The form 709 is  ONLY when you have gifted  more than the free amount.  Thus a $20,000 given to multiple relatives  may not actually rise to the requirement of  709 ----  the free amount for 2021 is $15,000 per donee per donor --- thus each spouse can donate  up to $15,000 to the same relative for a total of $30,000 per year.

 

Is there more I can do for you ?

FBAR and 709 for non-citizen who leaves the USA

I am emigrating to the 3rd country without posession of its citizenship, however i already do have a local TIN there, if that matters. And that country does not have tax treaty with the US

My spouse is also non-citizen.

We never filed jointly as the resident alien status was acquired only on this year and the same year I conducted these transfers. So we COULD file jointly the 2021 taxes, but on 1st jan 2022 we will be again both non-resident aliens and not even physically present in US. The funds were transferred from my individual account but not joint account

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