do I have to file my taxes as a non-resident abroad?

[y030910 0]

Hello, does a green card holder with income abroad and residing abroad temporarily with a valid reentry permit have to file U.S taxes as a non-resident?

Thanks.

[Nich-Nick 3,353]

As a greencard holder, you are a permanent resident of the U.S. You file a resident tax return if your income earned anywhere in the world exceeds the filing threshold. You can look at the Form 2555 instructions and see if you qualify for the foreign income exclusion. Alternatively, you may be able to take the foreign tax credit if you can't exclude the income. It's one or the other.

[y030910 0]

As a greencard holder, you are a permanent resident of the U.S. You file a resident tax return if your income earned anywhere in the world exceeds the filing threshold. You can look at the Form 2555 instructions and see if you qualify for the foreign income exclusion. Alternatively, you may be able to take the foreign tax credit if you can't exclude the income. It's one or the other.

Thank you for your reply. My income is much below the $100,800 threshold for 2015, does this mean I don't have to file any taxes? I would still like to fill out my paperwork but I thought if I did so, I will have to file as a non-resident regardless of whether my income is below the threshold or not because you are not physically present in the states?

Edited April 10, 2016 by y030910

[EM_Vandaveer 2,371]

Look into the possible immigration issues if you file taxes as a non-resident of the US.

Edited April 10, 2016 by EM_Vandaveer

[y030910 0]

Look into the possible immigration issues if you file taxes as a non-resident of the US.

I know what the immigration issues are and I don't want to file as a non-resident. I am just confused. I thought the income threshold is only considered if you pass a presence test which shows you are filing as a non-resident?

[y030910 0]

Basically my question is, I am outside the US temporarily and have foreign income. The foreign income is below the threshold of $100,800 for 2015. If I file as a resident of the US, is my tax still waived off due to the fact that my income is below the threshold of $100,800? This would mean I don't need to file as a non-resident.

[deleted this acco 44]

I don't think its a good idea to claim yourself as a nonresident since you are an lpr

[y030910 0]

I don't think its a good idea to claim yourself as a nonresident since you are an lpr

I dont want to but does that also mean I will be paying double tax?

[rutabaga 209]

Thank you for your reply. My income is much below the $100,800 threshold for 2015, does this mean I don't have to file any taxes? I would still like to fill out my paperwork but I thought if I did so, I will have to file as a non-resident regardless of whether my income is below the threshold or not because you are not physically present in the states?

I think you may be confusing thresholds here. The $100,800 is the maximum amount you may be able to exclude with a Foreign Earned Income Exclusion, but the actual filing threshold is much lower than that, namely, it's $4,000 for MFS, $10,300 for single and $20,600 for MFJ. In other words (and as far as I understand), you may be able to exclude all of your foreign-earned income, but you'd still have to file a tax return if the amount you made is above the filing threshold.

You might want to give Publication 54, Tax Guide for U.S. Citizens and Resident Aliens Abroad a read.

Edited April 10, 2016 by rutabaga

[Nich-Nick 3,353]

Basically my question is, I am outside the US temporarily and have foreign income. The foreign income is below the threshold of $100,800 for 2015. If I file as a resident of the US, is my tax still waived off due to the fact that my income is below the threshold of $100,800? This would mean I don't need to file as a non-resident.

First issue:

You are mixing up taxes and immigration. To the IRS, you are a RESIDENT and file form 1040 if you have a valid greencard. There is also a non-resident tax form (1040-NR) for people in the US on a visa for example who earn money while in the US. You are a resident for tax purposes no matter where in the world you are working or sleeping at night.

Second Issue:

The filing threshold means how much you have to earn anywhere in the world before you have to file a tax return at all. That's for people in the US or temporarily out like you. Low income means no filing.

I gave you a link to the 1040 instructions. See page 8.

If you are single, file a return if you earn $10,300 or more.

If you are Married Filing Separately, file a return if you earned $4000 or more.

See the instructions page 8 for the other filing statuses like joint..

So if you are over that in income, you file as a resident, Form 1040.

Third issue:

There is a foreign income exclusion Form 2555 which may qualify you to exclude a maximum of $100,800 of your foreign income from the tax return you are required to file. You can qualify on physical presence in the foreign country (if you have been there a certain number of days) or bonafide resident of the foreign country (if you have a visa or passport that allows you to legally be in that foreign country and work). Read the IRS instructions for Form 2555 and determine if you qualify. Fill out Form 2555 if you do.

The alternative option to excluding the foreign income is the Foreign Tax Credit. You claim all income, figure the tax it generates, then do a foreign tax credit. It would be for example your US tax figured is $4000. You already paid $3998 Income tax to the foreign country. You get that amount as a credit and owe the US only $2. There are forms to fill out for that as well. Learn more https://www.irs.gov/Individuals/International-Taxpayers/Foreign-Tax-Credit

Edited April 10, 2016 by Nich-Nick

[SusieQQQ 11,585]

First issue:

You are mixing up taxes and immigration. To the IRS, you are a RESIDENT and file form 1040 if you have a valid greencard. There is also a non-resident tax form (1040-NR) for people in the US on a visa for example who earn money while in the US. You are a resident for tax purposes no matter where in the world you are working or sleeping at night.

This is the critical bit for filing, but the fact that one can be deemed as having abandoned the green card for filing as non-resident, or for just not fiing at all, is still pretty important...

Edited April 11, 2016 by SusieQQQ

[Nich-Nick 3,353]

This is the critical bit for filing, but the fact that one can be deemed as having abandoned the green card for filing as non-resident, or for just not fiing at all, is still pretty important...

I am a little bit confused by what you are saying. Do you mean if he files and gives an address and employer outside the US, he can be deemed as abandoning his greencard?

Or do you mean if he files a 1040-NR tax return, which is incorrect to the IRS because he has a greencard. The two meanings of non-resident are being used in this thread so that's why I'm asking.

I guess both apply since the USCIS says:

Abandoning Permanent Resident Status

You may also lose your permanent resident status by intentionally abandoning it. You may be found to have abandoned your status if you:

• Move to another country, intending to live there permanently.
• Remain outside of the United States for an extended period of time, unless you intended this to be a temporary absence, as shown by:
  • The reason for your trip;
  • How long you intended to be absent from the United States;
  • Any other circumstances of your absence; and
  • Any events that may have prolonged your absence.
  • Note: Obtaining a re-entry permit from USCIS before you leave, or a returning resident visa (SB-1) from a U.S. consulate while abroad, may assist you in showing that you intended only a temporary absence.
• Fail to file income tax returns while living outside of the United States for any period.
• Declare yourself a nonimmigrant on your U.S. tax returns.

[y030910 0]

I am a little bit confused by what you are saying. Do you mean if he files and gives an address and employer outside the US, he can be deemed as abandoning his greencard?

Or do you mean if he files a 1040-NR tax return, which is incorrect to the IRS because he has a greencard. The two meanings of non-resident are being used in this thread so that's why I'm asking.

I guess both apply since the USCIS says:

Abandoning Permanent Resident Status

You may also lose your permanent resident status by intentionally abandoning it. You may be found to have abandoned your status if you:

• Move to another country, intending to live there permanently.
• Remain outside of the United States for an extended period of time, unless you intended this to be a temporary absence, as shown by:
  • The reason for your trip;
  • How long you intended to be absent from the United States;
  • Any other circumstances of your absence; and
  • Any events that may have prolonged your absence.
  • Note: Obtaining a re-entry permit from USCIS before you leave, or a returning resident visa (SB-1) from a U.S. consulate while abroad, may assist you in showing that you intended only a temporary absence.
• Fail to file income tax returns while living outside of the United States for any period.
• Declare yourself a nonimmigrant on your U.S. tax returns.

I am reading through the links you gave me in your previous post so thank you and everyone else who has contributed. I did have a look at the Bona Fide residence test and physical presence test before and thought passing any one of these means you are non-resident in the US even for temporary absence but my confusion has been cleared up.

Also to be considered bona fide resident of another country do you have to be in the other country for 12 months without return? In that case it would mean that I will be under the physical presence test since I have spent at least 330 days outside but I keep coming back to the US when I have a chance so my foreign stay is interrupted. Am I correct?

Edited April 11, 2016 by y030910

[SusieQQQ 11,585]

I am a little bit confused by what you are saying. Do you mean if he files and gives an address and employer outside the US, he can be deemed as abandoning his greencard?

Or do you mean if he files a 1040-NR tax return, which is incorrect to the IRS because he has a greencard. The two meanings of non-resident are being used in this thread so that's why I'm asking.

I guess both apply since the USCIS says:

Abandoning Permanent Resident Status

You may also lose your permanent resident status by intentionally abandoning it. You may be found to have abandoned your status if you:

• Move to another country, intending to live there permanently.
• Remain outside of the United States for an extended period of time, unless you intended this to be a temporary absence, as shown by:
  • The reason for your trip;
  • How long you intended to be absent from the United States;
  • Any other circumstances of your absence; and
  • Any events that may have prolonged your absence.
  • Note: Obtaining a re-entry permit from USCIS before you leave, or a returning resident visa (SB-1) from a U.S. consulate while abroad, may assist you in showing that you intended only a temporary absence.
• Fail to file income tax returns while living outside of the United States for any period.
• Declare yourself a nonimmigrant on your U.S. tax returns.

It was the last 2 lines of that USCIS extract that I was referring to. Declaring yourself a non resident on your tax return after you have been granted LPR status, or just not filing, are both dangerous things to do if one wants to keep a green card. You can file a resident return composed entirely of income received outside the US - we've done exactly that at an early stage - but we did use our US address for that, just to be safe. I was specifically worried about the OP's question where he asked "does this mean I don't have to file any taxes? I would still like to fill out my paperwork but I thought if I did so, I will have to file as a non-resident" - both options look dangerous to me from a USCIS perspective, while the IRS is clear that if you have a green card you are treated as a resident (as indeed you posted already).

[SusieQQQ 11,585]

Also to be considered bona fide resident of another country do you have to be in the other country for 12 months without return? In that case it would mean that I will be under the physical presence test since I have spent at least 330 days outside but I keep coming back to the US when I have a chance so my foreign stay is interrupted. Am I correct?

Each country has its own rules for what is considered tax residency. (My home country for example is 6 months plus one day in the year.) You'd need to check that with a tax expert from where you are living.

If I misunderstood and you are still asking about US residency - you don't have an option. You have a green card, under the green card test you are obligated to file. Period.

Edited April 11, 2016 by SusieQQQ