Moving out of US as a green card holder

[martintaki]

Hi. My wife and I are green cardholders.
We moved at the end of May abroad.
I got a job in UAE and plan to abandon my green car (31st of July),
whereas my wife wants to go back to US (she already submitted N400 to become a citizen).
My understanding is that after I surrender my green card, I can be
a dual tax resident for the tax year 2021 (submitting 1040 on my whole-world
income until 31st of July) and submitting 1040NR for my US income from
1st of August. I would like to ask if I can still claim some reallocation cost I had with the moving abroad (shipment of personal belongings, flight tickets, hotel in UAE while I settled down) and hence decreased my tax
responsibilities in the US. Another question is about my tax obligations for local and state taxes. Do I need to notify the local/state tax office that
I have moved out of the US and lost my immigration status?
Is there something else that I should think about when moving out of the US
forever?

Also, note that we own a joint house and have a joint bank account some investment accounts. I own additional accounts on Fidelity, TD Ameritrade, TIAA, .... do I need to close them if giving up my Green Card?

[KochuK]

Hi martintaki, thank you for joining the "Ask the Experts: Moving" special forum today.

Questions regarding Form 1040NR is out of scope. However, I am happy to relate to your questions in general.

Unless you are military, the moving expense deduction has been suspended for tax years 2018 through 2025 as a result of the Tax Cuts and Jobs Act that was signed into law in late December of 2017.

In general, when you move from one state to another state or overseas, you do not need to notify state/local agencies, you show intent by evidence of "leaving the Domicile", such as absence from the prior location, cancel driver license, voter registration, insurance, sell your main home. Below links are for more information.

What is my state residency status?

https://ttlc.intuit.com/community/state-taxes/help/what-is-my-state-residency-status/00/26000

What is Your Domicile?

https://www.nolo.com/legal-encyclopedia/what-is-your-domicile.html

Please also refer to IRS Pub 4588 Basic Tax for Green Card Holders Guide, Understanding your U.S. Tax Obligations - "What if I surrender my green card?"

https://www.irs.gov/pub/irs-pdf/p4588.pdf

Hope the above helps.

[drc845443]

Congratulations on your the new job!

You have indicated that your wife would still be a US citizen, when you give up your US green card. It is not clear from your message whether you would still continue to file joint income tax return.

If you are going to be filing a separate tax return, then you are correct that you would be a dual status alien, and file a Form 1040 until July and then a Form 1040-NR for the period beginning August 2021.

You have the option to file as married filing jointly and be treated as a resident for the whole year for tax purposes.

Here is a link to a resource that you may find helpful: https://www.irs.gov/individuals/international-taxpayers/taxation-of-dual-status-aliens

You do not have to notify the state/local tax authorities that you are moving, but it is advisable to do so in order for them to  have an updated address for sending any tax notifications.

You do not need to be a US citizen to own real estate or brokerage accounts in the US. Non-U.S. citizens or international investors can open a brokerage account and invest in U.S. stocks, and can also purchase and/or own real estate.

At this time, for most taxpayers, moving expenses are not deductible even when relocating within the USA. It is unlikely  that you would be able to deduct the relocation expenses.  Here is a resource you can refer to regarding moving expenses:

https://turbotax.intuit.com/tax-tips/jobs-and-career/guide-to-irs-form-3903-moving-expenses/L6CwmGm3...

Since you will still have family in the USA and are retaining financial interests, you may want to reconsider giving up the green card. It is convenient to travel into the USA if you plan to do so frequently.