Coming back to the United States after living abroad is more than a change of address. It’s a logistical and emotional maze. Let’s focus on the logistics first.
It’s a shift in how you’re taxed, how you access healthcare, and how your money moves. On the emotional side, you may reflect deeply on what it means to “go home.”
The good news: repatriation is manageable when you make a few deliberate decisions in the right order.
This guide walks you through the financial and practical moves that matter most, with an emphasis on cross-border planning so the years you spent abroad continue to serve your long-term goals.
Choose your return date on purpose
Your arrival date does more than start a new chapter; it usually starts your U.S. tax residency for that calendar year.
This is especially important if you’re moving back to one of the 41 states (or D.C.) that impose income tax. From a federal perspective, U.S. citizens are always U.S. tax residents, but when you have foreign residence, you may qualify for special reliefs that reduce or eliminate double taxation.
That one day can determine whether your return is a dual-status year (part nonresident, part resident), which credits or exclusions are available, and how income is split between your time abroad and your time back in the U.S. This is an especially important consideration for non-US connected individuals who may be moving into the U.S. tax system for the first time.
Timing matters for big transactions, too.
For example, a foreign home sale, the vesting of equity compensation, a bonus payout, or closing out foreign investments can be taxed very differently depending on whether they occur before or after you re-establish U.S. residency (and in some states, before or after you re-establish state domicile). If you have flexibility, choose the landing date that aligns with these events. Doing so will allow you to save a lot of money proactively.
Re-enter the U.S. financial system
Many expats return to find dormant credit files and limited access to familiar products.
If this applies to you, start by opening or reactivating a U.S. bank account and a U.S. brokerage relationship so you can move money cleanly, regain access to tools that were restricted while abroad, and document transfers for future tax reporting.
Order your credit reports from the three bureaus; if your file is thin, a secured or starter card can help you rebuild it quickly.
Keep a healthy cash buffer for the first few months, as repatriations typically involve deposits, overlapping rents, upfront insurance premiums, and supply purchases before your pay cycle normalizes.
While you’re setting up accounts, take a fresh look at your investment plan. The portfolio that fits your overseas life, currency exposure, local products, foreign pensions, and liquidity targets may not map neatly to your U.S. goals.
This is a natural moment to right-size risk, simplify holdings, and reassess your retirement timeline in the context of a move back to the U.S.
Taxes, as ever, remain tricky: FEIE, FTC, and the dual-status year
Most returning expats know two familiar acronyms: FEIE (Foreign Earned Income Exclusion) and FTC (Foreign Tax Credit). In a repatriation year, understanding how they interact is crucial.
- FEIE can exclude a portion of earned income from U.S. tax if you meet the Physical Presence or Bona Fide Residence tests. In a year you move home, eligibility often applies only to the foreign-residence portion of the year—and only to earned income (not dividends, interest, rents, pensions, or capital gains). FEIE is also adjusted annually, and a separate housing exclusion may apply for high-cost cities abroad.
- FTC reduces your U.S. liability by the amount of foreign income taxes you paid on the same income. It typically covers more income types than FEIE, doesn’t require a day-count test, and unused credits can carry forward. For many repatriates, especially those returning earlier in the year or with foreign investment/rental income, the FTC becomes the backbone of the return.
Worth noting
You generally cannot use FEIE and FTC on the same dollar of income, so track what you earned, where you earned it, and when.
In a dual-status year (part nonresident, part resident), you may also face special filing mechanics and state-tax restarts. This is where a coordinated plan, i.e., deciding which income streams go to FEIE vs. FTC, and how to handle carryforwards, can save both cash and headaches.
Foreign assets you’re keeping (or selling)
Real estate abroad
If you sell a former home overseas, U.S. capital-gains rules still apply. The primary-residence exclusion requires meeting use and ownership tests within the five-year window, and moving back early can shorten that window. If you keep the property, expect ongoing obligations in the country where the home sits (nonresident filings, possible withholding, property taxes), and report rental income and expenses on your U.S. return. Foreign taxes paid can often be credited in the U.S., but documentation is everything: keep settlement statements, depreciation schedules, and proof of foreign taxes.
Bank and brokerage accounts
Many institutions restrict nonresidents, and some close accounts when you change your address or permit. If you need to exit a platform, plan transfers before departure and save monthly/annual statements. Back in the U.S., you may still have FBAR and FATCA reporting if account thresholds are met; those rules hinge on ownership and control, not where you live.
Investments
Foreign funds can create PFIC reporting and punitive tax treatment for U.S. persons. If you accumulated non-U.S. pooled investments abroad, evaluate whether to retain, sell, or replace them now that you have U.S. market access again. Factor in local exit taxes, U.S. capital gains, and exchange-rate effects on basis.
Retirement accounts and pensions
A U.K. SIPP, a German Riester/Rürup, a Canadian RRSP, each sits under a different treaty framework.
A few key questions to think about:
- Is growth tax-deferred for U.S. purposes
- Are additional forms (e.g., 3520/8621) required, and
- How will withdrawals be taxed after you return? Lump-sum options, annuity choices, and timing can all change the result. Align any distribution with your U.S. tax year and your state’s rules.
Equity compensation
RSUs and options earned abroad are commonly sourced to that employment period, even if they vest or are sold after you move. That can keep part of the tax liability in your former country while the U.S. taxes the full amount.
Tip: Track grant dates, vest tranches, and days worked in each jurisdiction so you can claim the correct foreign tax credits in the U.S.
Social Security and totalization: don’t lose your years
If you contributed to a foreign social-security system, check whether the U.S. has a Totalization Agreement with that country.
As you likely already know, these agreements prevent double social taxes, help determine which system applies during assignments, and, most importantly, allow you to combine credits so short stints abroad still count toward eligibility.
Pull your SSA earnings record, secure contribution statements from overseas, and keep any Certificates of Coverage that applied to your assignment. No agreement in place? Learn the country’s vesting and refund rules so you don’t leave money behind.
Health insurance on day one
The U.S. does not provide automatic access to healthcare, and a single emergency can be costly.
If you’re starting a job, confirm the date your healthcare will kick in and any applicable waiting periods.
If you don’t have employer coverage, a move back to the U.S. typically opens a Special Enrollment Period on the ACA marketplace; review options for your state and, if necessary, bridge gaps with short-term coverage.
Ahead of the move
- Request medical records
- Gather vaccination history for you and your children
- Bring 2–3 months of medications,
- Check U.S. equivalents for any drugs that may differ here.
- Book a primary care appointment early—new-patient slots can take weeks.
Housing and cash-flow logistics
If you’re not sure where to land long-term, consider short-term furnished housing while you explore neighborhoods and school districts in person.
Start any rental or mortgage approval early; many landlords and lenders want to see current U.S. employment, pay stubs, and credit.
Build a realistic relocation budget—movers, shipping, storage, deposits, car purchases, appliance replacement, and upfront insurance can add up. Personally, I always tend to keep more cash than feels strictly necessary, and this instinct has served me and my nerves (yes, even cross-border planners get anxious about money!) well in the past.
A generous buffer makes the first 60–90 days calmer and reduces the urge to make rushed decisions.
Employment and benefits: read the fine print
A U.S. “local” package often looks different from an expat assignment. Health insurance has premiums and deductibles. 401(k) plans may include a match, but you must enroll and choose investments. Equity can follow a new vesting schedule. Paid leave might be (far) less than what you had overseas. Review any payback clauses tied to prior relocation benefits, and, if you’re changing jobs mid-year, coordinate retirement-plan contributions and HSA/FSA elections so you don’t miss windows.
Family, immigration, and the human side
Children may need time to feel at home again – particularly if they were born abroad. Gather school records and immunizations, enroll early, and use activities to rebuild a sense of community.
If you’re returning with a non-U.S. spouse or partner, start immigration and documentation well in advance, and consider how work authorization, health coverage, and tax filing (including an ITIN if needed) will work in the first year.
If you’re traveling with pets, confirm airline rules and health certificates early—some routes and breeds face seasonal restrictions.
Your first 90 days, simplified
- Month 1: In the first month, get the scaffolding in place: U.S. bank and brokerage accounts, health coverage, credit rebuild, and a clean structure for moving money.
- Month 2: In the second month, pull together tax documentation—foreign wage statements, home-sale paperwork, pension statements, equity grant details, and bank records for FBAR/FATCA.
- Month 3: By the third month, you should be aligning investments to your U.S. plan, locking in long-term housing, and scheduling routine medical care so life feels normal again.
A thoughtful way to come home
The best repatriations are timed and documented. When your return date, income sources, benefits, and accounts are coordinated, your first year back is simpler—and the financial story you’ve built across borders carries its value forward.
If you’re a U.S. taxpayer based in Germany or Switzerland and would like help turning these moving parts into one clean plan—choosing between FEIE and FTC, restarting state residency wisely, syncing Social Security credits, and deciding what to do with foreign assets—we’re here for that conversation.
A short call with a cross-border financial planner at Connected Financial Planning can turn an overwhelming re-entry into a more orderly new beginning.
References
- U.S. International SSA Agreements | International Programs | SSA
- Special Enrollment Periods | Medicare
- Get an Individual Taxpayer Identification Number (ITIN) to file your tax return | USAGov
Meet the Author
Arielle Tucker is a Certified Financial Planner™ and IRS Enrolled Agent with Connected Financial Planning. She's spent over a decade working with U.S. expats on U.S. tax and financial planning issues. She is passionate about working with U.S. expats and their families to help secure a financial future that is reflective of their core values. Arielle grew up in New York and has lived throughout the U.S., Germany, and Switzerland. Connected Financial Planning offers a complimentary introduction call for individuals and families seeking ongoing, comprehensive planning. You can schedule a call here, and feel free to reach out about having the complete guide to moving back to the U.S. sent to your inbox.