Will IRS tax my money earned in home country before becoming green card holder?

[Oleg92 8]

Just learned about the crazy tax laws in usa 🤯

[Crazy Cat 41,981]

Generally, no.

[Oleg92 8]

2 minutes ago, Crazy Cat said:

Generally, no.

That's not very helpful lol. I have considerable amount of saving in my bank account. I don't want to get shafted by irs for money I already paid tax on.

[Crazy Cat 41,981]

3 minutes ago, Oleg92 said:

That's not very helpful lol. I have considerable amount of saving in my bank account. I don't want to get shafted by irs for money I already paid tax on.

You won't.  The IRS does not tax accumulated wealth or  savings....only income gained during a particular  tax year.  

Edited February 21, 2022 by Crazy Cat

[Oleg92 8]

1 minute ago, Crazy Cat said:

The IRS does not accumulated wealth or  savings....only income gained during a tax year.  

So the money I earned before becoming a lpr isn't taxable by irs right?

[Crazy Cat 41,981]

Example:  

3 minutes ago, Oleg92 said:

So the money I earned before becoming a lpr isn't taxable by irs right?

Correct.....

Example:  My wife had/has considerable foreign income and savings.  She was a dual status alien her first year here.  She was not required to report income earned prior to becoming a legal resident. 

Edited February 21, 2022 by Crazy Cat

[Oleg92 8]

1 minute ago, Crazy Cat said:

Example:  

Correct.....

Example:  My wife had/has considerable foreign income and savings.  She was a dual status alien her first year here.  She was not required to report income earned prior to becoming a legal resident. 

Okay cheers 👍

[EmilyW 1,452]

You will need to report foreign income and savings after becoming an LPR but, so long as there is a tax treaty between your home country and the US, double taxation likely won't apply.

 

[STO Overland 137]

https://www.hg.org/legal-articles/green-card-holders-report-foreign-accounts-and-assets-to-the-irs-52929#:~:text=Do Green Card Holders Report,and investments to the IRS.

 

https://www.greenbacktaxservices.com/blog/filing-taxes-abroad-green-card-holders/

 

Might be helpful in your case...just a simple Google away

[SteveInBostonI130 3,468]

Foreign income earned during the tax year may be taxable, but not savings.  Interest earned on the savings may also be taxable.

 

If it is just savings, then it will need to be reported if it is over a certain amount but is not taxable.

 

When my wife became a LPR her bank in Ukraine partially locked her account (limited withdrawal amounts) until she completed a W9.  But no taxes were due/required.

[Crazy Cat 41,981]

Just now, SteveInBostonI130 said:

If it is just savings, then it will need to be reported if it is over a certain amount but is not taxable.

Yep.  Don't forget to file the FBAR if required.....

[JeanneAdil 6,562]

not even after u r LPR as if money is earned in foreign country (even interest on savings)  u file 2555 for foreign income under over $100,000 ($108,700 per qualifying person. for 2021) 

keep careful documents showing when the money was earned and foreign taxes paid 

this would be important if u have investments 

[millefleur 5,047]

18 hours ago, Oleg92 said:

Just learned about the crazy tax laws in usa 🤯

Welcome to the States, lol. I recommend getting a good CPA as they don't cost much and they can always help you figure out tax stuff and answer your questions. You may even be able to find a CPA who speaks your native language and is familiar with immigrants and taxes if you look around.

[Saqib-s 188]

On 2/22/2022 at 10:06 AM, Crazy Cat said:

Yep.  Don't forget to file the FBAR if required.....

Yep this advice right here.... take a note on the rules around FBAR filing,..