Query re form 1040NR for final tax return

Hi all

You helped me out a couple of years ago, and since then I'm up to date with tax returns and have renounced my US citizenship.

So this is perhaps a niche question. My US tax preparer has said I only need to do the usual 1040 along with the 8854 form. However, on a few other groups and webpages I've seen it talk about a dual status return, with 1040 until date you renounce and 1040NR until end of the tax year, plus 8854.

I've also had a look through the IRS guidance, which I don't really understand, which says 1040NR is about a change of residency in the year, not citizenship. I've not moved, have always lived in the UK!

Does anyone have a clear IRS link which shows we do need to do a 1040NR? I really want to get this right and be done forever!

See table A in the 1040NR instructions. Sure sounds like you should be using it as a non-resident alien.

https://www.irs.gov/pub/irs-pdf/i1040nr.pdf

See table A in the 1040NR instructions. Sure sounds like you should be using it as a non-resident alien.

https://www.irs.gov/pub/irs-pdf/i1040nr.pdf

Thanks. To be clear, which point in table A do you think applies? Number 10? But I wasn't a dual resident, and this is why I am confused.

Thanks. To be clear, which point in table A do you think applies? Number 10? But I wasn't a dual resident, and this is why I am confused.

Maybe I’m confused. I’m assuming that you renounced your citizenship in 2023 and it is the 2023 return you are filing? In which case you would have been a USC for part of the year and USCs are always considered resident for US tax purposes. Maybe you should simply follow your tax preparer’s advice and file a 1040.

https://www.oecd.org/tax/automatic-exchange/crs-implementation-and-assistance/tax-residency/United-States-Tax-Residency.pdf

As a general matter, under the U.S. Internal Revenue Code (Code), all U.S. citizens and U.S. residents
are treated as U.S. tax residents.

Maybe I’m confused. I’m assuming that you renounced your citizenship in 2023 and it is the 2023 return you are filing? In which case you would have been a USC for part of the year and USCs are always considered resident for US tax purposes. Maybe you should simply follow your tax preparer’s advice and file a 1040.

https://www.oecd.org/tax/automatic-exchange/crs-implementation-and-assistance/tax-residency/United-States-Tax-Residency.pdf

Thank you. I've asked the tax preparer to double check. I'm also confused, as after renouncing why does anyone need to do a tax return for that period anyway??! I've also asked if we can just do an the 1040NR out of caution! Will continue my Google search to see if I can find something clear on the IRS website.

Thank you. I've asked the tax preparer to double check. I'm also confused, as after renouncing why does anyone need to do a tax return for that period anyway??! I've also asked if we can just do an the 1040NR out of caution! Will continue my Google search to see if I can find something clear on the IRS website.

It is definitely confusing but after this year you won’t be filing IRS tax returns so that’s all good. If there is zero difference in taxes between a 1040 and a 1040NR then I don’t suppose the IRS care which form is used as long as the 8854 is filed as well.