Green Card Taxation - Abandon Green Card Tax Form 8854 - Expatriate Tax Services
Green Card Taxation - Green Card Tax Form 8854 - Resident Aliens outside United States - Permanent Resident Taxes - Abandon Green Card Tax Implications
By: Expatriate Tax Expert
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.
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.
If you are a Green Card and a permanent resident holder, and abandon your green card, you become an expatriate , read more on Expatriate Tax Services
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.
If you have any questions, please Contact Us or post your questions in the Forum.
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