You may need to pay income taxes in the United States even if you are not a citizen. Whether the U.S. government views you as a “tax resident,” you may or may not be required to file a tax return. Only certain nonimmigrant visa holders are tax residents, compared to all permanent residents (green card holders). However, if your employer has been withholding taxes from your salary, filing a U.S. tax return might be beneficial since you might be eligible for a refund of part of your money. If you need help to go forward with this, then USA Expat Taxes, an American expat tax services, can assist you in this endeavour.
The U.S. government may not necessarily tax your whole international income if you want to become a tax resident. Tax residents are required to disclose to the U.S. Internal Revenue Service all of their global income (IRS). A tax resident is required to record all income, regardless of whether some or all of it came from investments or business ventures conducted outside of the United States.
As soon as you obtain a U.S. green card, you immediately become a country resident for tax purposes, beginning with the year you arrived on an immigrant visa or received approval for an adjustment of status (a green card). Then, unless you make efforts to be classified as a resident of a foreign nation under an income tax treaty, you must disclose all of your income to the U.S. government. You may have heard that whether or not you are a tax resident depends partly on how many days you spend in the country annually. But only those with nonimmigrant visas—covered below—can claim this. You must still disclose your total worldwide income even if you spend the entire tax year abroad.
A felony may be committed if U.S. tax regulations are not followed. If you are convicted of a tax offence, you might face fines or, in the worst case, jail time. Additionally, you risk having your green card cancelled and being expelled from the country. You could also be found to have intended to be deemed a nonresident of the United States, which is equivalent to expressing an intention to renounce your permanent resident status if you failed to file U.S. tax returns or claimed nonresident tax treatment under a tax treaty between the U.S. and your home country. On account of this, your green card can be revoked.
You could be found to have intended to be considered a nonresident of the United States, which is equivalent to expressing an intention to renounce your permanent resident status if you failed to file U.S. tax returns or claimed nonresident tax treatment under a tax treaty between the U.S. and your home country. On account of this, your green card can be revoked.
The tax burden for Americans living abroad can be lessened by several exclusions and credits, such as the overseas earned income exclusion and the foreign tax credit, even though there is no general exemption from the U.S. tax for expats. Several special tax regulations apply to American expats working abroad, and tax credits and exclusions are only two examples. To minimize your global tax burden, consulting with a skilled and recognized expat tax advisor may be beneficial.
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