I renounced U.S. citizenship last year. Do I must report tax with dual status?

[HH Happyday]

I renounced U.S. citizenship last year.

Do I must report tax with dual status for the last year?

Or is it ok to report tax for the full year using Form 1040? 

I found that filing taxes with dual status is very difficult.

So, if possible, I would like to file Form 1040 for the entire year. 

Please let me know if there are any legal issues with this. 

[HH Happyday]

I almost forgot to mention, I've been living abroad for over 10 years now.

[Vanessa A]

Yes, you would be considered a dual status resident since you renounced your US Citizenship as of the date you renounced it.  You cannot choose to be treated as a resident of the US for the rest of the year, so you would need to file as a dual status resident. 

A citizen will be treated as relinquishing his or her U.S. citizenship on the earliest of four possible dates:

1. the date the individual renounces his or her U.S. nationality before a diplomatic or consular officer of the United States, provided the renunciation is subsequently approved by the issuance to the individual of a certificate of loss of nationality by the U.S. Department of State;
2. the date the individual furnishes to the U.S. Department of State a signed statement of voluntary relinquishment of U.S. nationality confirming the performance of an act of expatriation specified in paragraph (1), (2), (3), or (4) of section 349(a) of the Immigration and Nationality Act (8 U.S.C. 1481(a)(1)-(4)), provided the voluntary relinquishment is subsequently approved by the issuance to the individual of a certificate of loss of nationality by the U.S. Department of State;
3. the date the U.S. Department of State issues to the individual a certificate of loss of nationality; or
4. the date a U.S. court cancels a naturalized citizen’s certificate of naturalization.
   
    

Expatriation tax

(Edited 3/11/2025 @ 3:57AM PST) @HH Happyday 

[HH Happyday]

Thank you so much for help. I do not have income from US source at all. If I don't need to file 1040NR, then should I file 1040 for the last 1 full year, or only partial  year of the US citizenship? If I need to file for the partial year, can I use the standard reduction? 

Still, I have a question regarding this matter. I also got advice form other tax expert.

"U.S. tax residency – Green card test. You are a resident, for U.S. federal tax purposes, if you are a lawful permanent resident of the United States at any time during the calendar year." 

https://www.irs.gov/individuals/international-taxpayers/us-tax-residency-green-card-test

He said this applys to the US citizenship also, so he advised me I need to file 1 full last year as a resident. 

I would appreciate it if you could help me clarify this.

Thank you again. 

[SusanY1 · Accepted solution]

There are special rules for your tax filings in the year of expatriation.  You must file a dual-status return, though it sounds like the 1040NR portion in your case will only contain zeros for the income and tax figures. 

You are not able to claim the standard deduction when you file a dual-status return, but you can itemize deductions if any apply in your situation. 

You must also file Form 8854, the Initial and Annual Expatriation Statement, with your dual-status return.  

TurboTax doesn't include form 1040-NR and doesn't support the dual-status return online, but with our desktop product you can complete the 1040 portion in our software, if desired.  You can learn a bit more about filing this way here:  How should I file my taxes as a dual-status alien? 

I would suggest finding a tax professional with experience in filing the Initial Expatriation Statement (form 8854) with the Dual-status return to assist you in this tax filing obligation to ensure full compliance.  

[HH Happyday]

Thank you to those who responded. I understand that I need to file taxes with dual status by submitting Forms 1040, 1040NR, and 8854 since I renounced U.S. citizenship in 2024.

I still have questions regarding the 1040 partial-year return.

TurboTax does not support 1040 partial-year returns. Can I get the completed 1040 PDF before filing to the IRS? Do I need to pay first?

If I finish Form 1040 by entering partial-year income information into TurboTax using a full-year format, then print it out, manually correct the tax period to reflect the partial year on the front page with a pen, and mail it along with Forms 1040NR and 8854 to IRS, would that be acceptable? I would prefer to do this, if possible, since I have already finished entering the information into TurboTax.

If I need to download TurboTax software to obtain a 1040 printout, which software should I download? When filing Form 1040, I also need to complete Schedule 1, Schedule B, Form 2555, 8938, and 1116.

Thank you for help. I really appreciate it.

[HH Happyday]

I didn't have to download the TurboTax software.

I just went through TurboTax with parcial year info , paid, and chose to mail it.

I printed 1040, and wrote the tax year & date by myself. 

I hope it helps others who have the same problem as me.