Aliyah tax checklist:

Aliyah tax checklist:

1. Are you bringing your US based job with you to Israel? Congratulations.

Will your company still pay you as a W-2 employee, as an independent contractor, being given a 1099, or will they set up an Israeli subsidiary and give you an Israeli 106 form? Good to get this clear.

Being paid as an Israeli salary will save you from paying social security tax to the US.

2. Transferring a lot of money to an Israeli bank account? You will need to file an FBAR report at year end, and possibly a 8938 form on your tax return, to comply with FATCA.

3. Buying a home in Israel, and transferring a lot of money to an Israeli account? You will need a letter from your accountant certifying that all taxes were paid, for the Israeli bank to release the funds. This is comply with international AML (Anti Money Laundering) regulations.

4. You may want to find a new US tax accountant, who specializes in expats. Many US-based accountants aren't proficient in the special forms and procedures used for this special kind of tax filing.

5. Keep in mind that US taxation follows the citizenship based taxation model.

Meaning, you can be taxed on your worldwide income, no matter where you live, as long as you are a US citizen or green card holder.

So you will have to file a tax return each year, but may not have to pay tax to the US, due to foreign tax credits, the foreign income exclusion, and tax treaty provisions. You may even be able to get a tax refund each year. It all depends on your individual circumstances.

6. If you are a green card holder, you may want to relinquish it before you move. This will exempt you from the requirement to continue to file a US tax return, unless you have US source income. Note that you may still have to file for the current year.

7. If your spouse is not a US citizen or green card holder, it may be worthwhile for you to file jointly with your spouse.

They can file together with you if they make a special election and apply for an ITIN number (Individual taxpayer identification number, for non US citizens who need a US tax ID). This can cause a lot of tax savings, or increased refunds.

8. It usually isn't worthwhile to move all your money to Israeli accounts when you move. Especially IRA accounts, which have an early withdrawal penalty. There is no problem leaving the funds in US accounts until you need it, or when it's time to withdraw from an IRA.

9. You will want to keep in mind that if you get an Israeli job, you won't get any US social security credit.

If you still don't have the 40 credits to be able to claim a pension, there are solutions, though. If you work a W-2 job for a company in the US, you will get credit. While that is difficult to come by, being paid on a 1099 as an independent contractor also gives you credits.

Other self-employment or running your own business also can add to your credit. Make sure to report it on your US tax return, so you will officially get the credits.