GLOSSARY · VISA-HOLDER FINANCE

Covered expatriate

A citizen who gives up citizenship, or a long-term resident who ends US residence, and who meets any of three tests: average annual net income tax over the prior five years above an inflation-adjusted threshold, net worth at or above a fixed threshold, or failure to certify five years of tax compliance on Form 8854. A covered expatriate is taxed as if all property were sold the day before leaving, with special rules for retirement accounts.

Also called: exit tax, expatriation tax, section 877a
LEARN IT PROPERLY
CHAPTER · THE LONG GAME: GREEN CARD, RETIREMENT OR LEAVING · DEEP DIVEThe Expatriation Tax for Long-Term Green Card Holders
RELATED TERMS
Long-term resident (expatriation rules)Resident and nonresident alien (for tax)
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