Leaving USA, anyone have experience with "closer connection" test?


I’m leaving the USA this year to embark on a nomad lifestyle, I intend to spend less than 30 days in the USA and certainly less than 180 days. If I am over 30-days, is it easy to prove I have a “closer connection” to another country i.e. Form 8840? Retirement visa to another country / property ownership sufficient ? I am British but don’t want to be tax resident for UK or USA in 2017. Thanks



You need to have “residency” somewhere and be able to prove it. Basically they only let you off the hook if you are paying taxes somewhere. That being said, if you at least meet the physical presence test of the FEIE, you only have to pay self-employment tax on your taxable income (that’s 15%). You can avoid this by setting up an offshore (e.g. in Belize) but the cost of setup + maintenance is will be so much that it wouldn’t really save money unless you are saving at least ~$4000 in taxes by doing it…