Returning to the US: Tax Planning Checklist for US Expats Moving Back Home

Moving back to the United States after living abroad isn’t just a relocation — it’s a tax transition.

Without planning, returning expats often trigger:

• Unexpected taxes

• Reporting issues

• Lost exclusions and credits

Understanding what changes before you move is critical.

For background on expat obligations, see our main guide:
👉 /complete-guide-us-expat-taxes

What Changes When You Return?

Once you reestablish US residence:

• FEIE may no longer apply

• Worldwide income is fully taxable

• State tax exposure may resume

• Reporting thresholds may change

Timing matters — even a few weeks can impact eligibility.

Ending the Foreign Earned Income Exclusion

The Foreign Earned Income Exclusion generally ends when:

• You no longer meet residency tests

• Your tax home returns to the US

Mid-year moves require careful allocation of income.

Related reading:
👉 /foreign-earned-income-exclusion-feie-expats

Foreign Accounts Don’t Disappear

Returning to the US does not eliminate:

• FBAR obligations

• FATCA reporting

• PFIC exposure

If foreign accounts remain open, reporting continues.

Learn more:
👉 /fbar-foreign-bank-account-reporting-expats
👉 /fatca-form-8938-expats
👉 /pfic-foreign-investments-us-expats

Selling Assets Before Returning

Before reentry, some expats consider:

• Selling foreign investments

• Closing accounts

• Restructuring businesses

This can reduce future complexity — but only if done correctly.

Business owners should also review:
👉 /us-expats-foreign-companies-cfc-gilti

State Tax Risk After Return

One of the biggest surprises is state taxation.

Some states:

• Resume taxation immediately

• Look back at residency ties

• Challenge domicile status

State planning is often overlooked — and expensive.

Fixing Issues Before You Return

If past filings were missed, resolving them before reentry may be easier through:
👉 /streamlined-filing-compliance-procedures-expats

Once back in the US, options can narrow.

Human Takeaway

Returning home should feel like a reset — not a tax ambush.

Exemplary helps expats plan reentry cleanly, minimize exposure, and transition back to the US with confidence.