How do I file if I moved abroad mid-year?

Filing taxes for the year you move abroad requires special attention because you are splitting the year between US and foreign residence. You still file one Form 1040 covering the entire calendar year, but several aspects of your return require careful handling.

For the Foreign Earned Income Exclusion, you can claim a prorated amount based on the number of qualifying days you spent abroad. The maximum exclusion is prorated — if you lived abroad for 6 months (approximately 183 days), you can exclude approximately half the annual limit. You will need to meet either the Physical Presence Test or the Bona Fide Residence Test starting from your move date. Note that the Physical Presence Test uses a rolling 12-month period, so you may need to wait until you have accumulated 330 qualifying days before you can claim the FEIE.

Income earned while in the US before your move is US-source income and is not eligible for the FEIE. Only income earned while living and working abroad qualifies. You will need to clearly document your move date and allocate your income between US and foreign sources.

For state taxes, you will likely need to file a part-year resident return for the state you left. Most states will tax income earned while you were a resident. Take steps to formally establish your departure — update your address, close local accounts, and document the date you left.

If you moved abroad late in the year and cannot meet the Physical Presence Test by the filing deadline, you can file for an extension and wait until you accumulate 330 qualifying days. Alternatively, you can file without the FEIE, then amend your return once you qualify.

Other considerations include reporting any foreign accounts opened during the year on FBAR if the aggregate balance exceeds $10,000, and potential Foreign Tax Credit claims for any taxes paid to your new country of residence. Moving expenses are no longer deductible for most taxpayers under current tax law.