Jump to content

11 posts in this topic

Recommended Posts

Filed: IR-1/CR-1 Visa Country: Denmark
Timeline

My husband has his interview in a couple weeks (world situation allowing) but we want to make sure we’ll be right on how he pays his taxes when he gets here. I know Denmark and the US have a tax treaty but I can’t for the life of me understand it. Once he becomes an LPR, who does he owe taxes to? Only the US? Or does he still have to pay taxes to Denmark as well? If so, how much? And how? Maybe I’m overthinking it but it’s confusing 


Our CR1 Journey:

 

USCIS Stage:

  • Feb 14 2019: NOA1 (NSC)
  • July 31 2019: I129f NOA1
  • Sep 19 2019: I129f NOA2 (Denied - 50 days from NOA1)
  • Sep 19 2019: I130 NOA2 (Approved - 217 days from NOA1)

 

NVC Stage:

  • Sep 27 2019: Sent to Department of State
  • Oct 31 2019: Case number received (34 days since sent)
  • Nov 1 2019: IV & AOS fees received & paid
  • Nov 14 2019: IV & AOS submitted
  • Dec 18 2019: All docs accepted, but one additional doc requested (5 weeks from submission)
  • Dec 18 2019: Requested doc submitted
  • Feb 19 2020: Documentarily Qualified (9 weeks from 2nd submission, 14 weeks from first submission)

 

Interview Stage:

  • Mar 11 2020: Interview letter received
  • Apr 1 2020: Interview date
  • Mar 17 2020: Interview cancelled due to COVID-19
  • Waiting for: Interview reschedule

Share this post


Link to post
Share on other sites
Filed: AOS (pnd) Country: Netherlands
Timeline
8 minutes ago, LilyJ said:

My husband has his interview in a couple weeks (world situation allowing) but we want to make sure we’ll be right on how he pays his taxes when he gets here. I know Denmark and the US have a tax treaty but I can’t for the life of me understand it. Once he becomes an LPR, who does he owe taxes to? Only the US? Or does he still have to pay taxes to Denmark as well? If so, how much? And how? Maybe I’m overthinking it but it’s confusing 

I don't know the specific agreement between the US and Denmark, but in general the rule of thumb is that the jurisdiction in which you reside has a stronger claim and the other jurisdiction will respect that. Sometimes there's a transitional year that complicates things (e.g. a lot of EU countries, will have you pay pro rated taxes based on the months that you lived in the EU country), but in general it's a pretty straightforward matter, especially since other countries (not US) typically don't require you to file taxes if you haven't lived in that country. 

 

You'll have to contact the Danish tax agency to see how they tie up emigration. He probably owes taxes pro rated till the day he wrote himself out of the Danish civil registry. 


We Don’t Have A Difference In Political Opinion, We Have A Difference In Morality

 

The rooster that took credit for the sunrise acted surprised when they blamed him for the sunset…

 

Schrödinger's AOS: You can't use AOS, unless you weren't planning on using AOS.

 

Spoiler
  • 2020-02-05: Packet send to Chicago lockbox w/USPS
  • 2020-02-06: Packet received
  • 2020-02-12: Confirmation texts received
  • 2020-02-13: Cheques cashed
  • 2020-02-15: NOAs received (Notice date 2020-02-11)
  • 2020-02-20: Requested to Expedite EAD through phone
  • 2020-02-22: Biometrics letter received (dated 2020-02-14)
  • 2020-03-06: Biometrics appointment
  • 2020-02-24: Walk in biometrics
  • 2020-02-25: I-485 & I-765 Status Updated to Fingerprints received & Initial Review
  • 2020-02-25: Request for additional information for EAD expedite
  • 2020-02-25: Faxed additional information for EAD expedite
  • 2020-02-27: EAD expedite approved
  • 2020-02-28: RFE generated
  • 2020-03-05: RFE received
  • 2020-03-08: Response to RFE send
  • 2020-03-10: Response to RFE received by USCIS
  • 2020-03-11: Case status reflects receipt response to RFE
  • 2020-03-19: I-485 Case is Ready to Be Scheduled for An Interview
  • 2020-03-25: I-131 Case Was Updated To Show Fingerprints Were Taken
  • 2020-04-07: EAD New Card Is Being Produced
  • 2020-04-08: EAD Case Was Approved
  • 2020-04-08: AP Case Was Approved
  • 2020-04-11: EAD/AP Notice of approval received
  • 2020-04-14: Combo card (EAD/AP) received

 

36D9m5.png


 

Share this post


Link to post
Share on other sites
Filed: Timeline
14 hours ago, LilyJ said:

My husband has his interview in a couple weeks (world situation allowing) but we want to make sure we’ll be right on how he pays his taxes when he gets here. I know Denmark and the US have a tax treaty but I can’t for the life of me understand it. Once he becomes an LPR, who does he owe taxes to? Only the US? Or does he still have to pay taxes to Denmark as well? If so, how much? And how? Maybe I’m overthinking it but it’s confusing 

He cannot use the tax treaty anyway because he's going to be a US LPR. imo the usual filing of tax return in denmark for duration until departure for the US plus the regular US tax return (married filing jointly or married filing separately) for remainder of the year.

Share this post


Link to post
Share on other sites

You'll be taxed by the U.S on your worldwide income. If you need to pay tax to your home country, (unsure if Denmark is resident based), then you'll file a 1116 to the IRS, which is for tax credit, as paid to the Danish tax authorities. 

Share this post


Link to post
Share on other sites
On 3/17/2020 at 7:22 AM, xyz12345 said:

He cannot use the tax treaty anyway because he's going to be a US LPR. 

As a general reminder, everyone should be wary of taking tax advice from a message board, especially when you see blanket statements like ‘the LPRs can’t use the tax treaty.’ It May not apply to the poster’s personal situation but it might for others. In the case of treaties, they can apply when an LPR must file dual returns as a result of certain dividends and interest on ex-US accounts, rental income on an ex-US property, certain trusts, or other sources of income. Talk to a dual qualified tax accountant (or at least one with some experience with this area of the law). 
 

 

Share this post


Link to post
Share on other sites
Filed: Timeline
33 minutes ago, US-UK said:

As a general reminder, everyone should be wary of taking tax advice from a message board, especially when you see blanket statements like ‘the LPRs can’t use the tax treaty.’ It May not apply to the poster’s personal situation but it might for others. In the case of treaties, they can apply when an LPR must file dual returns as a result of certain dividends and interest on ex-US accounts, rental income on an ex-US property, certain trusts, or other sources of income. Talk to a dual qualified tax accountant (or at least one with some experience with this area of the law). 
 

 

yup, advice from a random stranger on an online forum should be taken with a grain of salt, especially in cases like this. This is a case for a tax accountant anyway. Most of time I only see this kind...

 

https://controller.richmond.edu/payroll/international/residency.html

Resident Alien vs. Legal Permanent Resident

A person is a resident, for tax purposes, if the person is a Lawful Permanent Resident of the United States at any time during the calendar year. This is known as the "green card" test. A person is a Lawful Permanent Resident of the United States, at any time, if the person has been given the privilege, according to the immigration laws, of residing permanently in the United States as an immigrant. This status is generally given if the U.S. Citizenship and Immigration Service (USCIS) has issued an alien registration card, also known as a "green card." A person continues to have resident status, under this test, unless it is voluntarily renounced and abandoned in writing to the USCIS, or the immigrant status is administratively terminated by the USCIS, or the immigrant status is judicially terminated by a U.S. federal court. If a person meets the green card test at anytime during the calendar year, but does not meet the substantial presence test for that year, the residency starting date is the first day on which the person is present in the United States as a Lawful Permanent Resident. However, an alien who has been present in the United States at any time during a calendar year as a Lawful Permanent Resident may choose to be treated as a resident alien for the entire calendar year.

Resident Alien For Tax Purposes

The IRS wants a person to be treated as an RA for tax purposes from their first day of presence in the year that they will pass the Substantial Presence Test (SPT.) The SPT determines when an NRA becomes an RA for tax purposes. Resident aliens can use the same filing statuses available to U.S. citizens. An RA can claim the same deductions allowed to U.S. citizens if they are a resident alien for the entire tax year.

 

 

 

 

Share this post


Link to post
Share on other sites

My husband and I filed MFS our first year living together so that I didnt have to claim my worldwide income.  

But you can definitely invest in an international tax accountant. 


You have brains in your head. You have feet in your shoes. You can steer yourself any direction you choose.  - Dr. Seuss

 

Share this post


Link to post
Share on other sites

As I think you noted, none of that explanation precludes the need to potentially file in another country in addition to being a US tax resident, which is where the treaties come in. Some examples:

 

Scenario 1: Long Term Incentives (e.g., shares) awarded while a tax resident of Country A are now vesting. Country A has a claim on the income tax, despite the current US status, as the LTIs were awarded on their soil. Tax treaty is implicated.
 

Scenario 2: LPR retains a propert(ies) in Country B and rents it out, earning income in Country B and triggering a tax filing.  Tax treaty may be implicated.
 

Scenario 3: LPR is beneficiary of a Foreign Grantor Trust in Country B which must be reported to the US government and may be taxed on imputed interest income. Tax treaty must be considered.

Share this post


Link to post
Share on other sites

As a LPR you are obliged to report worldwide income to the IRS. Remember to also file FinCEN114 if you have over $10k in foreign assets, (aggregated) IRS form 8938 if you have over the threshold reporting amounts. 

Share this post


Link to post
Share on other sites
Filed: Citizen (pnd) Country: Denmark
Timeline

There is a form he has to fill out and contact them with. They will then decide if he still has tax obligations in DK, limited tax obligations in DK or no tax obligations in DK. I got that for both my son and I and therefore we don't have to give any information to the danish government at all. 

He will also have to register at the folkeregister that he is moving out of DK.


 

 

 

 

Share this post


Link to post
Share on other sites
Filed: IR-1/CR-1 Visa Country: Denmark
Timeline
On 6/16/2020 at 8:26 PM, Georgia16 said:

There is a form he has to fill out and contact them with. They will then decide if he still has tax obligations in DK, limited tax obligations in DK or no tax obligations in DK. I got that for both my son and I and therefore we don't have to give any information to the danish government at all. 

He will also have to register at the folkeregister that he is moving out of DK.

This is extremely helpful, thank you. Who should he contact and what is the form called if you can recall? And does he still have to report income to Denmark even if he does not owe taxes, similar to what the US does for citizens living abroad, or does he not have to worry about that at all if he owes nothing?


Our CR1 Journey:

 

USCIS Stage:

  • Feb 14 2019: NOA1 (NSC)
  • July 31 2019: I129f NOA1
  • Sep 19 2019: I129f NOA2 (Denied - 50 days from NOA1)
  • Sep 19 2019: I130 NOA2 (Approved - 217 days from NOA1)

 

NVC Stage:

  • Sep 27 2019: Sent to Department of State
  • Oct 31 2019: Case number received (34 days since sent)
  • Nov 1 2019: IV & AOS fees received & paid
  • Nov 14 2019: IV & AOS submitted
  • Dec 18 2019: All docs accepted, but one additional doc requested (5 weeks from submission)
  • Dec 18 2019: Requested doc submitted
  • Feb 19 2020: Documentarily Qualified (9 weeks from 2nd submission, 14 weeks from first submission)

 

Interview Stage:

  • Mar 11 2020: Interview letter received
  • Apr 1 2020: Interview date
  • Mar 17 2020: Interview cancelled due to COVID-19
  • Waiting for: Interview reschedule

Share this post


Link to post
Share on other sites
 
Didn't find the answer you were looking for? Ask our VJ Immigration Lawyers.

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
- Back to Top -


Important Disclaimer: Please read carefully the Visajourney.com Terms of Service. If you do not agree to the Terms of Service you should not access or view any page (including this page) on VisaJourney.com. Answers and comments provided on Visajourney.com Forums are general information, and are not intended to substitute for informed professional medical, psychiatric, psychological, tax, legal, investment, accounting, or other professional advice. Visajourney.com does not endorse, and expressly disclaims liability for any product, manufacturer, distributor, service or service provider mentioned or any opinion expressed in answers or comments. VisaJourney.com does not condone immigration fraud in any way, shape or manner. VisaJourney.com recommends that if any member or user knows directly of someone involved in fraudulent or illegal activity, that they report such activity directly to the Department of Homeland Security, Immigration and Customs Enforcement. You can contact ICE via email at Immigration.Reply@dhs.gov or you can telephone ICE at 1-866-347-2423. All reported threads/posts containing reference to immigration fraud or illegal activities will be removed from this board. If you feel that you have found inappropriate content, please let us know by contacting us here with a url link to that content. Thank you.
×
×
  • Create New...