Can I Get Tax Back When Leaving the US? How to Claim Your Refund

Leaving the U.S. permanently or for an extended period raises important tax questions, particularly concerning potential refunds. Many departing individuals wonder if they can reclaim taxes withheld from their earnings and how to navigate the process from overseas. Understanding the rules and requirements ensures you don’t leave money behind.

Claiming a refund involves determining eligibility, filing correctly, and addressing both federal and state tax obligations. Handling these steps properly can make receiving your funds abroad much smoother.

Residency Status Considerations

Determining your tax residency status is essential when leaving the U.S. The IRS classifies individuals as either resident aliens or nonresident aliens based on the substantial presence test or green card status. If you meet the substantial presence test—spending at least 183 days in the U.S. over a three-year period using a weighted formula—you are generally considered a resident for tax purposes. Green card holders remain U.S. tax residents until they formally surrender their status through USCIS.

Your residency classification affects how your income is taxed. Resident aliens are taxed on worldwide income, while nonresident aliens are only taxed on U.S.-sourced income. If you transition from a resident to a nonresident within the same tax year, you may need to file a dual-status return, which requires reporting income under both classifications. This can affect deductions, credits, and tax treaty benefits.

Tax treaties between the U.S. and other countries may reduce or eliminate taxes on certain types of income, such as wages, pensions, or investment earnings. If you are moving to a country with a tax treaty, reviewing its provisions can help minimize double taxation. The IRS website provides a list of treaties and their specific benefits.

Filing Steps from Overseas

Filing a U.S. tax return from abroad requires careful planning. Nonresidents must use Form 1040-NR, while residents should file Form 1040. Using the correct form is important to avoid delays or IRS scrutiny.

Electronic filing is the fastest method, but not all tax software supports nonresident returns. If e-filing isn’t an option, you must mail a paper return. The correct mailing address depends on whether you are including a payment. Since international mail can take weeks, using a trackable courier service like FedEx or DHL is recommended.

Tax deadlines remain the same regardless of location. Most filers must submit returns by April 15, but those living abroad receive an automatic extension until June 15. If more time is needed, filing Form 4868 extends the deadline to October 15, though any taxes owed must still be paid by April 15 to avoid interest and penalties.

Tax Refund Eligibility

Your eligibility for a tax refund depends on how much tax was withheld from your income and whether you qualify for deductions or credits. Employers withhold federal income tax based on Form W-4 elections, but if too much was withheld—especially if you worked only part of the year before leaving—you may be entitled to a refund.

If you overpaid estimated taxes or had excess Social Security and Medicare taxes withheld, you might also qualify for a refund. For example, if you worked multiple jobs and your combined earnings exceeded the Social Security wage base ($168,600 for 2024), you may have paid more than the required 6.2% in Social Security tax. The excess can be claimed back when filing your return. Additionally, certain nonresident students and scholars on F-1 or J-1 visas are exempt from FICA taxes, but if these taxes were withheld in error, you can request a refund using IRS Form 843.

Tax credits can also impact refund eligibility. The Foreign Tax Credit (Form 1116) may apply if you paid taxes to another country, while the Additional Child Tax Credit (ACTC) can provide a refund if you meet income and residency requirements. The Earned Income Tax Credit (EITC) may still be available if you qualify, though some credits may be limited if you no longer have a U.S. tax liability.

Addressing State Tax Obligations

State tax obligations can be more complex than federal requirements, as each state has its own residency rules. States like Florida, Texas, and Nevada do not impose an income tax, so former residents have no further obligations once they leave. However, states like California and New York have strict residency criteria and may continue to tax individuals based on domicile. If you maintain ties such as property ownership, voter registration, or a driver’s license, you may still be considered a tax resident.

To avoid ongoing tax liabilities, formally severing residency is important. This may include updating legal documents, closing local bank accounts, and demonstrating intent to reside elsewhere. Some states require a final part-year resident return if you earned income there before moving. If you continue to receive U.S.-sourced income, such as rental or business income from the state, you may need to file as a nonresident and report only the income sourced to that jurisdiction.

Receiving Funds While Abroad

Once a tax refund is approved, receiving the funds while overseas requires planning. The IRS primarily issues refunds via direct deposit to U.S. bank accounts or by mailing a paper check. If you still have an active U.S. bank account, direct deposit is the fastest and most secure option.

If you no longer have a U.S. bank account, receiving a paper check can be challenging. Some foreign banks accept U.S. Treasury checks, but processing times vary, and fees may apply. Services like Wise (formerly TransferWise) or virtual U.S. bank accounts through providers like Charles Schwab or Revolut can help facilitate access to funds. If no banking options are available, appointing a trusted individual in the U.S. to deposit the check on your behalf may be necessary.

IRS Follow-Up

After filing, the IRS may request additional information, especially if your return includes foreign income, treaty claims, or unusual refund amounts. Responding promptly is important to avoid delays. Since IRS correspondence is sent to the address listed on your return, providing a reliable U.S. mailing address—such as a family member’s residence or a mail forwarding service—can help ensure you receive notices.

If a refund is delayed, checking the status through the IRS “Where’s My Refund?” tool can provide updates. International filers may need to call the IRS, though wait times can be long, and access to a U.S. phone number may be required. If issues persist, submitting Form 3911 to trace a missing refund or consulting a tax professional experienced in expatriate tax matters can help resolve complications.