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Green Card Taxes - Implications of Green Card Taxes - IRS Green Card Tax Living and Working Outside the United States - Declare World Wide Income - Green Card file United States Tax Return Forms - IRS Publication 4588 - US Canada Permanent Resident Taxes - Tax Deductions H1B and Green Card - Green Card Tax Status - Green Card Tax Guide - File Form 8854 Instructions


If you have a green card, you are a lawful permanent resident of the U.S. even if you live abroad. This means you are treated as a U.S. resident for U.S. income tax purposes and you are subject to U.S. tax on your worldwide income from whatever source derived.

Accordingly, you must file a U.S. tax return unless

(a) there has been a final administrative or judicial determination that your lawful permanent resident status has been revoked or abandoned,

(b) your gross income from worldwide sources is less than the amounts that require a tax return to be filed, or

(c) your U.S. residence status is affected by an income tax treaty.

When a foreign national receives his or her permanent resident status or green card, they have to pay taxes on their world wide income. A failure to pay these taxes may impact their green card renewal or citizenship.

Even if the Green card holder lives or works outside the United States, the green card holder is required to file United States Taxes each year. Failure to pay taxes during green card will result in his greencard or citizenship being rejected.

Example:

You are an Indian citizen holding a greencard.

Say you moved to Singapore from United States with your greencard, and work and pay taxes in Singapore, you are required to also file United States taxes, for the income in Singapore. So you file taxes in United States, in additional to the taxes filed in the foreign country, if you hold a green card.

There are treaties to avoid double taxation, and a Foreign Earned Income Exclusion limit of around $80,000 and a separate Form Form 2555 to claim the exclusion.

But still filing US taxes each year on world wide income on Green card is a mandatory requirement.

If you want to escape from US taxation, the only way is to abandon the Green card and File IRS Tax Form 8854 and Expatriation taxes if required.

Basic Permanent Resident - Green Card Tax Guide - Most Commonly asked Questions


Can I deduct my Green Card Legal Fee or Lawyer fee in my Form 1040 Tax Return?

The Answer is NO, as it is a personal expense, not related to work or business and cannot be deducted as a Tax Deduction in Form 1040.

Do I have to pay United States on my worldwide income if I am a Permanent Resident or Green Card holder

Based on residency test (See Substantial Presence Test Calculator), if you are a Resident or a Permanent or Green Card Tax holder, you have to pay United States taxes on your world wide income, even if you live within or outside the united states.

Filing Form 2555 Foreign Earned Income Exclusion, Form 1116 Foreign Tax Credit, Tax Treaty between United States and your foreign country can avoid double taxation, and reduce the taxable income.

What are my tax obligations if I Surrender my Green Card or my US Permanent Resident status?

First you need to determine, if you are a Short Term (hold Green Card less than 8 years) or Long Term Green Card holder (8 years or more). If you are a short term green card holder, you need not file Form 8854. If you are a long term green card holder, you have to file Form 8854. Failure to file Form 8854, carries huge penalty.

We at www.visataxes.com specialize in filing world wide taxes on Greencard, Permanent resident taxes and claiming Foreign Earned Income Exclusion by Filing Form 2555.

How to file Expatriate Tax Statement - Form 8854 Instructions - Green Card Tax Form

If you are a United States Citizens, Resident Alien, Green Card holder Working Abroad - See Expatriate Taxes.

Also please read the IRS Publication 4588 - Basic Tax Guide for US Green Card Holders or Permanent Residents in the United States : Understanding Your U.S. Tax Obligations

visataxes Greencard Taxes

If you have any questions on Green Card Taxes or Permanent Resident Taxes, please Contact Us or post your questions in the Forum.