# year of expatriation 1040 and 1040 NR



## Waldemar22

Hi all, 
I gave up my US citizenship in April of 2013. 

I have not lived in the US for many years and have zero assets there. 

Do i need to fill out both the 1040 for the time in 2013 I was an american citizen AND a 1040 NR for the time until the end of 2013 that I was not a US citizen. 

I was under the impression that I only had to file the 1040 and only up until the day I expatriated.
and if anyone can actually refer me to the actual ragulation.

Waldemar

Thanks so much


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## DavidMcKeegan

Hi Waldemar22,

Actually an almost identical question was posted just the other day here on the forum. That information is below, and I believe it applies to your situation as well.

You would file the 1040NR. For the 2013 tax year you would be considered "dual status" (you were both a resident and a non resident), and according to the IRS website, if you were a non resident at the end of the year;

"You must file Form 1040NR, U.S. Nonresident Alien Income Tax Return or Form 1040NR-EZ, U.S. Income Tax Return for Certain Nonresident Aliens With No Dependents if you are a dual-status taxpayer who gives up residence in the United States during the year and who is not a U.S. resident on the last day of the tax year. Write "Dual-Status Return" across the top of the return. Attach a statement to your return to show the income for the part of the year you are a resident. You can use Form 1040, U.S. Individual Income Tax Return as the statement, but be sure to mark "Dual-Status Statement" across the top."


If you want more information, you can view the IRS page, Taxation of Dual-Status Aliens

**Please note that most preparers (in practice) will complete the standard 1040 to determine your liability while still a resident, and then flow that information over to the 1040NR. The 1040NR will be the main item of your return, but it is entirely possible for both forms to be included.

However in almost all cases you will cease to pay US tax as soon as you have renounced.

One other thing to consider (you may have already, but it was not clear from your post), is that in order to fully renounce you must be caught up on your US tax returns. So, if you have not filed for the years that you were outside the US, you will likely have to file up to the last five years and include that with your final renunciation (Form 8854).

I hope this helps!

David McKeegan


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## Waldemar22

DavidMcKeegan said:


> Hi Waldemar22,
> 
> Actually an almost identical question was posted just the other day here on the forum. That information is below, and I believe it applies to your situation as well.
> 
> You would file the 1040NR. For the 2013 tax year you would be considered "dual status" (you were both a resident and a non resident), and according to the IRS website, if you were a non resident at the end of the year;
> 
> "You must file Form 1040NR, U.S. Nonresident Alien Income Tax Return or Form 1040NR-EZ, U.S. Income Tax Return for Certain Nonresident Aliens With No Dependents if you are a dual-status taxpayer who gives up residence in the United States during the year and who is not a U.S. resident on the last day of the tax year. Write "Dual-Status Return" across the top of the return. Attach a statement to your return to show the income for the part of the year you are a resident. You can use Form 1040, U.S. Individual Income Tax Return as the statement, but be sure to mark "Dual-Status Statement" across the top."
> 
> 
> If you want more information, you can view the IRS page, Taxation of Dual-Status Aliens
> 
> **Please note that most preparers (in practice) will complete the standard 1040 to determine your liability while still a resident, and then flow that information over to the 1040NR. The 1040NR will be the main item of your return, but it is entirely possible for both forms to be included.
> 
> However in almost all cases you will cease to pay US tax as soon as you have renounced.
> 
> One other thing to consider (you may have already, but it was not clear from your post), is that in order to fully renounce you must be caught up on your US tax returns. So, if you have not filed for the years that you were outside the US, you will likely have to file up to the last five years and include that with your final renunciation (Form 8854).
> 
> I hope this helps!
> 
> David McKeegan


Hi David, Thanks for your reply!
I have some comments though. 
So basically, even though I am not subject to taxes on my non US source income after the date of my expatriation, I am still required to file a form for this rest of the year? 
I am sure it will be filled with many zeros then. 

I am going to see if I can just file 1040 nr ez. 

Yes I am up to date on everything. Filing 8854 was a breeze .

Thanks again.


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## Waldemar22

Hi David, Once again I must contest my having to file this. I found these instructions.

Who Must File
File Form 1040NR-EZ (or Form 1040NR) if you were a nonresident alien engaged in a 
trade or business in the United States during 2013.
You must file even if:
You have no income from a trade or business conducted in the United States,
You have no income from U.S. sources, or
Your income is exempt from U.S. tax under a tax treaty or any section of the Internal Revenue Code.
You also must file a return for 2013 if you need to pay social security and Medicare tax on tips you did not report to your employer or on wages you received from an employer who did not withhold these taxes.
Exceptions. You do not need to file Form 1040NR-EZ (or Form 1040NR) if:
1. Your only U.S. trade or business was the performance of personal services; and
a. Your wages were less than $3,900; and
b. You have no other need to file a return to claim a refund of overwithheld taxes, to satisfy additional withholding at source, or to claim income exempt or partly exempt by treaty; or
2. You were a nonresident alien student, teacher, or trainee who was temporarily present in the United States under an “F,” “J,” “M,” or “Q” visa, and you have no income (such as wages, salaries, tips, etc., or scholarship or fellowship grants) that is subject to tax under section 871.

_So Why must I file if I was not engaged in a trade or business in the United States for 2013? In addition to having ZERO us source assets.
_
These instructions are very confusing. I just don´t get it.


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## Waldemar22

Income Subject to Tax
This I found in Publication 519:
For the part of the year you are a resident alien, you are taxed on income from all sources. Income from sources outside the United States is taxable if you receive it while you are a resident alien. The income is taxable even if you earned it while you were a nonresident alien or if you became a nonresident alien after receiving it and before the end of the year.

_For the part of the year you are a nonresident alien, you are taxed on income from U.S. sources and on certain foreign source income treated as effectively connected with a U.S. trade or business. _(The rules for treating foreign source income as effectively connected are discussed in chapter 4 under Foreign Income.)

Income from sources outside the United States that is not effectively connected with a trade or business in the United States is not taxable if you receive it while you are a nonresident alien. The income is not taxable even if you earned it while you were a resident alien or if you became a resident alien or a U.S. citizen after receiving it and before the end of the year. 

I would conclude that this plus the previous message I sent in would make it clear that I would not need to file 1040 NR.


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## DavidMcKeegan

Hello Waldemar,

I believe the instructions you have above (first statement) are the general 1040NR instructions. These do not apply to you because you are considered "Dual Status" for 2013, and thus special filing rules apply. 

Within those special rules it states that if you were a non resident at the end of the year, then you should file a 1040NR (1040 NR-EZ if you'd like). I personally would do exactly that so as to avoid any possible questioning or review from the IRS. 

Even though the return is the NR version, the main information will come from Jan-April when you were a citizen (you can file a 1040 for that time and include it as a statement with your 1040NR), the rest will be a bunch of zeros from the sounds of it (as you had no US source income).

As all things usually are with the IRS, there may be something about your situation which would provide yet another exception, and you would file another form. However, with the limited information I have about your case, I say 1040NR.

Hope this helps and best of luck!

David


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## Waldemar22

DavidMcKeegan said:


> Hello Waldemar,
> 
> I believe the instructions you have above (first statement) are the general 1040NR instructions. These do not apply to you because you are considered "Dual Status" for 2013, and thus special filing rules apply.
> 
> Within those special rules it states that if you were a non resident at the end of the year, then you should file a 1040NR (1040 NR-EZ if you'd like). I personally would do exactly that so as to avoid any possible questioning or review from the IRS.
> 
> Even though the return is the NR version, the main information will come from Jan-April when you were a citizen (you can file a 1040 for that time and include it as a statement with your 1040NR), the rest will be a bunch of zeros from the sounds of it (as you had no US source income).
> 
> As all things usually are with the IRS, there may be something about your situation which would provide yet another exception, and you would file another form. However, with the limited information I have about your case, I say 1040NR.
> 
> Hope this helps and best of luck!
> 
> David


Thank you so much for your reply. I really appreciate this. I will take this into consideration. I am attempting to contact the IRS but have not gotten through with their computer answer system. I think I will call the London or Franfurt office for further views on this. 
All in all it would probably take another 15 minutes to fill out the form with all my zeros and have no need for further forms in my situation. 
It was just that someone I spoke to said I would have to use a tax credit for the remainder of the year on the NR form. I most assuredly wont need this as my income has no ties with the US whatsoever. 

In any case I think you again!
Best
Waldemar


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