Taxation for Green Card Holders

Updated on Thursday 22nd September 2016

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Even if you have not become a citizen of the U.S., it might be required for you to pay taxes for green card holders in the country. The U.S. government rules that all “tax residents” should file their tax return. If you are a green card holder in the U.S., you are considered a tax resident.

Tax residents in the U.S. have to report their entire income worldwide to the U.S. Internal Revenue Service (IRS). Even when part or the entire income was gained from businesses or investments from overseas, a tax resident has to report it entirely. However, it does not necessarily imply that the government of the country will impose taxation for the worldwide income of green card holders.

Procedure of filing for taxation for green card holders in the U.S.

For green card holders, the general procedures for filing the income, estate and gift tax returns, as well as paying estimated taxation are the same as for U.S. citizens. Furthermore, a green card holder is usually taxed the same as U.S. citizens. 

Similarly, green card holders in the U.S. can enjoy the same filing statuses, exemptions, deductions and credits as U.S. citizens.

Taxations rules for green card holders in the U.S. tend to be quite complex and they are not easy to comprehend even for U.S. citizens, therefore we recommend you to hire an immigration lawyer in Miami to assist you in this regards.

When does a green card holder become a tax resident in the U.S.?

A green card holder automatically becomes a tax resident in the U.S. starting with the year when he or she becomes a permanent resident of the country. Therefore, the green card holder has to declare his or her worldwide income to the IRS, unless he or she applied to be treated as a resident of a foreign state under an income tax treaty. 

What is the green card was surrendered or abandoned?

Losing the permanent resident status does not automatically imply that the holder stops being a U.S. tax resident. Before being exempt from filing the tax returns in the U.S., the person in question might have to announce the Department of Homeland Security that he or she no longer has the permanent resident status or that he or she is surrendering the green card, maybe having to submit a form with the IRS. A Miami immigration lawyer can provide more details on this situation.

If you need more guidance on the taxation for green card holders, please get in touch with an immigration attorney in Miami.


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