Immigrant visa - Start date from US tax perspective
#1
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Immigrant visa - Start date from US tax perspective
Hello all,
When receiving a green card under an IR-1 application, what is the start date from the IRS's perspective from a tax point of view?
The day I receive the temporary VISA in my passport after the interview or the date I first enter the US and get stamped?
(Something else?)
Thanks
When receiving a green card under an IR-1 application, what is the start date from the IRS's perspective from a tax point of view?
The day I receive the temporary VISA in my passport after the interview or the date I first enter the US and get stamped?
(Something else?)
Thanks
#2
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Joined: Aug 2002
Location: Kentucky
Posts: 38,865
Re: VISA - Start date from US tax perspective
The day I receive the temporary VISA in my passport after the interview or the date I first enter the US and get stamped?
Ian
#3
Re: VISA - Start date from US tax perspective
The date you become a US PR. You don't become a US PR until you enter the USA using your immigration visa
The time between getting your visa and entering the USA is only a few months at most anyway.
Rene
The time between getting your visa and entering the USA is only a few months at most anyway.
Rene
#4
Re: VISA - Start date from US tax perspective
You become tax resident on entering the US. This in theory makes you liable for taxes from January 1 of the year you enter the US, however you can elect for a transitional treatment for that first year by excluding income prior to your arrival in the US, but you will lose out on your "standard deduction" and the ability to file jointly (assuming your spouse is a USC). If you file taxes for the whole calendar year you can get a credit for taxes paid overseas before you became tax resident in the US.
#5
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Re: VISA - Start date from US tax perspective
Thank you all this is very clear.
I will keep a close watch on my "Caps Lock" key Ian...
I will keep a close watch on my "Caps Lock" key Ian...
#6
Re: VISA - Start date from US tax perspective
There is some confused advice in this thread, though only Ian is actually wrong. This is what comes of asking a tax question to the BE experts on immigration.
There are two tests for US tax residency - the substantial presence test, and the green card test. The latter is more important for you, and, as Rene says, it means that you count as tax resident as soon as you arrive. If you are only tax resident for part of the year, you count as dual status, meaning you are only taxed by the US on income after you arrive. You can, however, elect to be treated as tax resident for the whole year if you are a legal resident, and this can sometimes be worthwhile.
All the information you need is at this link.
https://www.irs.gov/individuals/inte...ien-tax-status
There are two tests for US tax residency - the substantial presence test, and the green card test. The latter is more important for you, and, as Rene says, it means that you count as tax resident as soon as you arrive. If you are only tax resident for part of the year, you count as dual status, meaning you are only taxed by the US on income after you arrive. You can, however, elect to be treated as tax resident for the whole year if you are a legal resident, and this can sometimes be worthwhile.
All the information you need is at this link.
https://www.irs.gov/individuals/inte...ien-tax-status
#7
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Re: VISA - Start date from US tax perspective
Thank you Owen, sorry for misclassifying.
#8
Re: Immigrant visa - Start date from US tax perspective
I would read through this document, and maybe then ask questions. Especially the part labelled First Year of Residency
https://www.irs.gov/publications/p51...link1000222164
https://www.irs.gov/publications/p51...link1000222164
#9
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Re: VISA - Start date from US tax perspective
#10
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Joined: Aug 2016
Posts: 32
Re: Immigrant visa - Start date from US tax perspective
Oh no you're very right, the US tax is the most obscure thing I ever came across. What's clear to me is that I can treat my first year in 2 different ways, and plan accordingly in terms of taxes in between the US and the UK.
#11
Re: VISA - Start date from US tax perspective
It does mention the substantial presence test and the green card test in the treaty but the most relevant bit is paragraph 4, which talks about the "centre of vital interests" which is what it really boils down to, because it's pretty easy to make out you're resident in both countries for the purposes of paragraph 1.
This comes up with snowbirds all the time.
But of course, if you make out you're resident elsewhere, it threatens your LPR status.
#12
Re: Immigrant visa - Start date from US tax perspective
You can either be dual-status or elect to be resident for the whole year. The second method is simpler but if you've paid any significant amount of tax abroad prior to immigrating you file dual-status. There is a step-by-step illustration of how to file dual-status in the 2011 edition of IRS publication 519.
#13
Re: VISA - Start date from US tax perspective
Actually assuming he's from the UK the relevant bit is Article 4 of the tax treaty. Or Article 4 of the tax treaty for wherever he's from.
It does mention the substantial presence test and the green card test in the treaty but the most relevant bit is paragraph 4, which talks about the "centre of vital interests" which is what it really boils down to, because it's pretty easy to make out you're resident in both countries for the purposes of paragraph 1.
It does mention the substantial presence test and the green card test in the treaty but the most relevant bit is paragraph 4, which talks about the "centre of vital interests" which is what it really boils down to, because it's pretty easy to make out you're resident in both countries for the purposes of paragraph 1.