Having an immigrant visa but not using it

[Alex B 9]

Hi all

I've just dug myself out of the moras that became my taxes this year and a thought strikes me...

If I have an immigrant visa can I enter the US and not use it. So I would be entering as a tourist with the restrictions that I have to leave etc.

The reason for asking is that the moment you get a green card you need to file taxes as a US resident, my my understanding of the kinder gentler IRS. If you get the immigrant visa towards the end of the year but want to visit for Christmas, then on New Years day, or thereabouts go around the flagpole in Canada and then re-enter using the immigrant visa this would avoid major tax headaches.

What do you think? Would CBP buy this? Is it the travelers choice?

Thanks

[mikey78 6]

There is something called dual-resident status for tax purposes. You can find more information about it on IRS website. In the first year of your immigration you might be considered a dual resident (depends on a variety of factors but the most important is the total number of days spent in the US during a tax year). What it basically means is that if you are a dual resident for tax purposes you will pay taxes in Canada for the part of the year when you were there and the reminder of the year you pay taxes in the US on whatever you made here. So if you didn't work in the US after you immigrated, you wouldn't need to worry about filing taxes for that year because you didn't have any income. Now this only works if you really didn't have any income in the US, do not file jointly, and stopped receiving any money from Canada after you moved to the US. And by 'any money' I mean income from other sources than salaries, such as interests, income from rents, etc.

Hi all

I've just dug myself out of the moras that became my taxes this year and a thought strikes me...

If I have an immigrant visa can I enter the US and not use it. So I would be entering as a tourist with the restrictions that I have to leave etc.

The reason for asking is that the moment you get a green card you need to file taxes as a US resident, my my understanding of the kinder gentler IRS. If you get the immigrant visa towards the end of the year but want to visit for Christmas, then on New Years day, or thereabouts go around the flagpole in Canada and then re-enter using the immigrant visa this would avoid major tax headaches.

What do you think? Would CBP buy this? Is it the travelers choice?

Thanks

[Alex B 9]

There is something called dual-resident status for tax purposes. You can find more information about it on IRS website. In the first year of your immigration you might be considered a dual resident (depends on a variety of factors but the most important is the total number of days spent in the US during a tax year). What it basically means is that if you are a dual resident for tax purposes you will pay taxes in Canada for the part of the year when you were there and the reminder of the year you pay taxes in the US on whatever you made here. So if you didn't work in the US after you immigrated, you wouldn't need to worry about filing taxes for that year because you didn't have any income. Now this only works if you really didn't have any income in the US, do not file jointly, and stopped receiving any money from Canada after you moved to the US. And by 'any money' I mean income from other sources than salaries, such as interests, income from rents, etc.

This is a good point. I used it when I first came to the US. The trailing months of '95 I claimed to be non-resident and took the tax treaty benefits with the UK. The next year I got caught up as a dual resident because of the nice 50% credit for the prior year rule. The problem here is that when you have a green card you seem to be considered a resident, regardless of number of days in the country. The bit which messes things up is it would force my filing status to change from head of household to married single or joint, both of which are significantly worse.

Here's a link to their determination: http://www.irs.gov/businesses/small/international/article/0,,id=96314,00.html The interesting bit is where it says, "have been afforded the privilege of residing permanently", which could be construed a CR-1/IR-1 has been issued.

Ugh!

[JoannaV 174]

As for whether you can have an immigrant visa and not use it, no. It is activated upon entry into the US. Now someone can come on vacation, activate their green card, and not actually move to the US until several months later (still be living and working abroad, and tying up their affairs before actually moving to the US). Which confuses the residence issue of course...