If you have a green card in the United States and you're planning on living abroad you may be interested to know that you could be responsible for paying taxes as a United States citizen. As a green card holder, it's important to know the implications of the card before you apply as well as what you could be responsible for if you move.
A green card is a permit that allows a foreign national to work permanently and live in the United States. Green card holders are individuals that qualified for the card through meeting a series of requirements. You can obtain a green card through marriage, through an immigration petition that's approved, by receiving employment in the United States and through several other requirements.
As green card holders can have access to a large number of rights in the United States, any green card holder will be required to file taxes using the IRS form 1040. As a green card does allow individuals to earn an income in the United States, they will be responsible for paying taxes on those earnings as well. If you are a US green card holder and working abroad, you'll also be responsible for reporting your income and paying taxes on any foreign earned income as well.
As a green card holder, there's a chance that you could be subject to more taxes than a regular US citizen. If you have a significant amount of income that isn't based in the US, there's a chance that your taxes could continue to rise. If you are willing to qualify for citizenship or potentially even give up your green card it's possible that you could lower your taxation rate. US residents are never able to be taxed to the full 30% withholding tax on their US sourced income or foreign income whereas green card holders can be taxed to these rates.
If you would like to receive some quality advice on how you can avoid extensive payments with tax as a green card holder, contact us today. We provide professional advice to green card holders and US citizens.
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