How does my U.S. tax residency change in the year I permanently leave the country?

The year you leave the U.S. for good is often a dual-status year, mirroring an arrival year in reverse: resident alien through your residency termination date, then nonresident alien afterward. Your termination date is generally your last day of U.S. presence (for Substantial Presence Test residents) or the day your green card is officially abandoned. Worldwide income is taxed only through that date; after it, only U.S.-source income is. Departing green-card holders should formally surrender the card and may need to file Form 8854, and long-term permanent residents could face the expatriation "exit tax" rules. Don't assume that flying home ends your U.S. tax duties—abandoning status is a specific legal step. If you're an NRI heading back, the return-to-india tool at wealthserene.com/tools/return-to-india helps you map the financial moves around your departure.