Tax Preparation for US Expat, Green Card Holder and US Tax Residents

Even if you are not a U.S. citizen, you may be required to pay taxes in the United States. Whether or not you must file a U.S. tax return depends upon whether the U.S. government considers you a “tax resident.” All permanent residents (green card holders) are tax residents, but only some holders of nonimmigrant visas are tax residents (see below).

Tax residents must report their entire worldwide income to the U.S. Internal Revenue Service (IRS). It doesn’t matter if a portion or all of that income was earned from investments or business activities carried on outside the United States; a tax resident must report it all. But becoming a tax resident does not necessarily mean that the U.S. government will tax all of your worldwide income.

These rules are complicated and subject to a number of confusing exceptions. If you are unsure of your situation, consult a tax accountant or lawyer. Also see IRS Publication 519, U.S. Tax Guide for Aliens.

If You Have a Green Card

    • Once you get a U.S. green card, you automatically become a U.S. tax resident, starting with the year you got the green card. You must then declare your entire income to the U.S. government, unless you took steps to be treated as a resident of a foreign country under an income tax treaty.
    • You may have heard that the number of days you spend in the United States each year has some effect on whether or not you are a tax resident. But this is true only for people who have nonimmigrant visas, discussed below. It is not true for green card holders. Even if you remain outside the U.S. for an entire year, you’ll still need to report your entire worldwide income.
    • As a green card holder, you must file a U.S. tax return Form 1040 each year.

Our international tax advisory services are aimed at helping you maximize foreign tax credits to lower your tax liabilities so you keep more of your hard earned money. Request a consultation now or call us at 914-220-5497 today to learn more.

US Expat Tax

U.S. expatriates and Green Card holders earning income while working in a foreign country are subject to taxes in that country plus the United States.  To avoid double taxation, individuals can claim a Foreign Tax Credit (FTC). The laws governing foreign tax credits are complex and changing tax treaties can complicate matters further. Atlantax Group LLC is highly skilled in international taxation and knows how to claim credits for U.S. expats. As a qualified international tax accounting firm, we’ll determine if you qualify for a Foreign Tax Credit to help reduce your tax burden and will prepare and file Form 1116 for each category of income to be sure you never pay more in tax than you actually owe.

Foreign tax credit planning for expats includes:

    • Preparation of Form 1116
    • Prevention of double taxation
    • Analyzing the pros and cons of claiming foreign tax credits

Request a consultation now or call us at 914-220-5497 today to learn more.

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