Paying estimated tax and filing a return when permanently leaving the country

[Bro]

We are UK citizens who moved here in 2016.

We gained LPR (green card) status in August 2020.

We are relocating back to the UK on 17 February 2024 so we will not achieve LTR status as we will not have been LPR's for 8 years.

That means we don't need to file form 8854.

We will be filing form i-407 to abandon our LPR status after which I believe we will be non resident for US tax purposes.

I am self employed as a contractor for a company in the UK and make estimated payments every quarter.

Will I still need to make estimated payments for 2024 even though we will have left the country and won't be returning?

I assume we will also have to do a final tax return in 2025 for 2024.

Thanks in advance for any advice.

[Bro]

I forgot to add, we will be filing form i-407 to abandon our LPR status.

[DaveF1006]

I would make one estimated tax payment for April 15 just to cover the taxes due from 1/1-2/17. This way, you may avoid an estimated tax penalty. Just remember, any excess tax paid will be refunded to you.

Yes, you will need to file a tax return for the period of time between 1/1 and 2/17. 

[Bro]

I made an appointment with the local IRS office to get the sailing permit (they said we were the first people in 7 years to do one) and spoke with them there about it.

They agreed it would be best to make the usual 4 payments for any income expected to be earned for the 6 weeks before we leave.

Then when the final 1040-NR is filed in 2025, we would get a refund of anything owed.

Just over 1 year to go and we will finally be free of the US tax system!

Yeehaw!

[DaveF1006]

Yes, if you make estimated tax payments for the 2024 tax year, you will receive a refund for excess payments that is more than your tax liability based off your taxable income for the year. If you have no taxable income, then the full amount paid will be refunded to you regardless of your resident status.

This confirms what the IRS told you.

@Bro