When discussing the indication of renouncing one's US citizenship or US lawful permanent residency (= green card), I was told that:

There will be an exit tax if you relinquish and you were 1) a US citizen, or 2) a long-term resident, which means a green card for 7 or more years in the 15 year period immediately prior to expatriation. This makes you a “covered expatriate”, but you can plan beforehand to avoid these taxes.

How can one plan ahead to (legally) avoid the taxes stemming from becoming/being a "covered expatriate”?

  • 1
    Is there a source for the quote? Mar 7, 2021 at 12:28
  • the law/regs around that is definitely really complex and arcane ...
    – Fattie
    Mar 7, 2021 at 14:39
  • I think the 'exit tax' is badly named and means that they will keep some money to make sure you file your taxes in the year of leaving (and further years if needed). Otherwise, there is no cost - just a pin-down of your money.
    – Aganju
    Mar 7, 2021 at 19:20
  • @mhoran_psprep private message Mar 7, 2021 at 19:51
  • 1
    Then ask them what they meant. Mar 7, 2021 at 21:18


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