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 HoldersRELATED TERMS
SOURCES
- Expatriation tax. Internal Revenue Service.
- Rev. Proc. 2025-32, sections 4.37 and 4.38. Internal Revenue Service.