Are you thinking about moving overseas?

Is it the laid-back lifestyle in New Zealand, the beaches in Spain, Costa Rican culture, a career shift in the UK, or the laid-back lifestyle in Spain?

If you're seeking a change, anywhere around the world will provide plenty of variety and a different pace of life.

You're probably thinking about how to pack up your family and all of your stuff, how to arrange car shipments , and what your new way of life will be like.

But before you go too far with your plans, think about some potential legal problems you might think you will be able to leave behind. Before you leave, you'll need to take care of a few tax-related issues.

1. Stay on top of your US taxes

US citizens and those who have green cards may still be compelled to submit taxes in the United States even after moving abroad since they are still considered tax residents of the United States. You might still need to record your foreign income.

In 2020, filing tax returns will still be necessary for individuals generating more than $12,400 and married couples filing jointly who earn at least $24,800 in worldwide gross income.

While you're traveling, it's easy to forget about your tax obligations. American ex-pats have an automatic extension of two months, to June 15, to file their taxes.

2. Plan your US travels in advance

If you are relocating abroad in the middle of the year, make sure you will be gone for at least 330 days. This allows you to eliminate around $100,000 of foreign income from US tax calculations.

The Foreign Earned Income Exclusion permits tax-paying Americans who are living abroad to exclude up to $108,700 of income from foreign sources on their tax return for the following year. Double taxes are avoided by doing this.

3. End your state residency in a proper manner

Most states will waive your six-month residency requirement if you can prove that you currently reside elsewhere.

However, in states like Virginia, California, and South Carolina, it can be difficult to avoid state taxes. You must show proof that you'll never come back.

You can avoid paying state taxes by cutting all ties with the state before leaving the country. Resign from all landlord positions and suspend your license from the state. For the first few years that you are away from home, you should file a non-resident state return to make sure that your status as a non-resident is recognized.

4. You can change your tax year

The beginning of the tax year varies per country, beginning in some cases in April and others in July. This may require some getting used to. Be sure to keep your pay stubs so you can use the January 1 through December 31 US tax year to declare your foreign income.

5. The US bank

This can be useful if you're sending money to a family in the US. However, if you start to qualify for any US benefits, such as social security, you can make sure that you are paid into your US account in case there are any problems transferring the money to your foreign bank accounts.

Speak with the American embassy in your potential host country and a respected ex-pat tax filing company for more details prior to moving abroad.