sherbert

We are GC holders. My OH has the opportunity to be transferred overseas by his company. We will be applying for a reentry permit (I-131) so that we can return within two years and not forfeit our green cards. If the I-131 is granted (and I am fully aware it might not be), what are our US tax liabilities during those two years while our GCs will be 'suspended' and we will not be residents in the US? Would we need to file and pay taxes as if we were residents?

tht

I don’t know where you got the idea your PR is suspended and you don’t pay taxes? I thought the reentry permit was to allow a longer trip away from home (in the US). As an aside while you can get a credit for foreign taxes you are required to pay against your federal liability, in my experience they only credit against federal and not any state or city taxes that may apply to your US place of residence, I think the one exception is with Canada there is more ability to credit.

scrubbedexpat099

The re entry permit is part of the process in seeking show you are not abandoning your residency. I 407 is what you file if you wish to abandon residency.

tom169

Still taxed on worldwide income.

sherbert

Right. I don't want to abandon residency. I was under the impression that one can be overseas for up to two years (for work/study) and not lose the green card *if* one has been granted an I-131 (re-entry permit) before leaving.

I understand that all US citizens and permanent residents living abroad are required to file tax returns (expats are permitted to exclude $102,100 of income earned abroad from their US tax obligation). I just thought that my green card would somehow be suspended for the time I was away (up to 2 years) if I was granted a re-entry permit. If this is not the case and the green card remains valid throughout the time I am away then the answer is clear: tax returns and possible payments are due.

neill

This looks informative: https://1040abroad.com/faq/who-is-a-...-tax-purposes/

sherbert

Thank you! So it's clear then: must file (and pay if necessary) taxes unless the green card is officially abandoned (I-407).

On another note, has anyone successfully applied for the re-entry permit I-131? Is the reentry permit valid for multiple entries until its expiry date?

tht

I think you have to be non resident to claim that exclusion. Assuming you don’t live in a state with no income taxes you may want to move to one before you move. I commuted to the UK for a couple of years as a PR and it got very expensive tax wise because I lived in NYC with state and city tax to pay... think close to 50% once NI and SS etc were included.

scrubbedexpat099

Not sure I have ever heard of anyone been refused a Re Entry Permit.

petitefrancaise

we applied for a re-entry permit for our son who would be a student in the EU over a 3 year period. The permit is nothing more than you telling the USCIS that you are going to be out of the country and don't wish to abandon your LPR status. As an aside, it is valid for entry to the USA if you lose the actual green card. It is valid for the whole 2 year period and for as many entries as you need in those 2 years.
What you need to watch out for if you wish to apply for citizenship is that you must still not be out of the USA for more than 180 days at a time.

Eric S

That's a little deceptive. You can be out of the USA for more than 6 months. But if you want to apply for citizenship, it may reset the clock on your continuous residence requirement. See more info here.

- Eric S.

petitefrancaise

you're right about that. It is what we went through with our son who had 3 days over on one instance and 5 days over in another. The lawyer told us that legally it isn't clearcut and that since we were able to justify why he couldn't come back within the 180 days ( and prove it) he would probably be ok. He was. You also have to watch out for the 30 months residency within the last 5 years too.
My point was that even with the Re-entry permit you must still watch out for the absences as it doesn't change the rules governing that.