If you are considering giving up your U.S. citizenship or green card, think twice before you pull the trigger. If you are considering giving up your U.S. citizenship or green card, think twice before you pull the trigger. How do I file taxes in the US? This form, as well as instructions, can be found on the IRS website at www.irs.gov. An alien may become a resident alien by passing either the green card test or the substantial presence test. 7 min read Both lawful permanent residents (green card holders) and U.S. citizens enjoy many of the same rights, such as the ability to live permanently and work in the US. [uncode_block... #citizenship #formi90 #formn400 If you are also among the many that have renounced or are considering renouncing their US citizenship or Green Card, there are some steps you must take from the tax perspective. (However, see Dual Status Aliens) This is known as the "green card " test. It may also be considered a crime — and if you are found guilty, your green card can be revoked and you may be deported. If you have a green card, your worldwide income must be reported to the U.S. government, even if you remain outside the U.S. for an entire year. If you are a resident alien (green card holder), the guidelines for filing your income, estate, and gift tax returns and paying estimated tax are generally the same as if you were a US citizen. Individuals holding U.S. green cards are considered lawful permanent residents of the U.S. even when living abroad. The United Kingdom and the United States share a strong bond, and U.S. citizenship or permanent resident status allows access to the largest economy in the world. If you are also among the many that have renounced or are considering renouncing their US citizenship or Green Card, there are some steps you must take from the tax perspective. It is not true for green card holders. Why would a dual U.K-U.S. citizen, or a Briton who has been granted a U.S. “green card,” ever consider giving that up? You are a resident for tax purposes if you are a lawful permanent resident of the United States at any time during the calendar year. American tax laws make it clear that it doesn’t matter if you have dual citizenship. Increasingly, the answer is one word: tax. A terrific read on what Expatriation is- relinquishment of your US Green Card or Lawful Permanent Residence or US Citizenship, determining if you are a Covered Expatriate, the resulting Exit Tax and the carve puts for Specified Tax-Deferred Accounts, Eligible and Ineligible Deferred Compensation and Interests in Nongrantor trusts. Before you do so, you should be aware of many things and plan ahead. Before you do so, you should be aware of many things and plan ahead. After tons of paperwork, fees and patience, I was granted a conditional green card (good for 2 years) and then had to apply to remove those conditions, a process that took about a year and a half with the need of a lawyer. Giving up a Green Card can cost Greenbacks. I am a green card holder. A green card is a document that permits a non-citizen to remain permanently in the U.S., while an H1 visa allows only a temporary stay, usually for work, school or travel. Failure to follow the U.S. tax laws can lead to harsh consequences for tax residents. As such, green card holders are generally treated in the same as U.S. citizens for U.S. federal income tax purposes and are subject to U.S. income tax on their worldwide income regardless of … Green card holders are required to adhere to US tax laws. For many, it's an unpleasant surprise. As U.S. continues its war on offshore tax evasion, many expatriates feel caught in the crossfire. The United States is one of two countries in the world, where a tax on foreign income is based on citizenship and not a residence. I got my green card through marriage to a U.S. Citizen. However, U.S. citizens enjoy some important benefits that green card holders don’t. Failure to comply may result in termination of immigrant status and/or deportation. Green card holders have more rights and privileges than H1 visa holders, who are merely guests in the country. As long as you hold American citizenship or you are a green card holder, then you are liable to pay U.S. taxes. This week, I will cover one of them - the expatriation tax (more commonly known as the exit tax). If you have a green card, it will hurt your ability to qualify for U.S. citizenship. Green Card Taxes: Everything You Need to Know.