Relinquishing Green Card
 

I have returned to the UK after a 30 year stint in the US. A financial advisor asked if I was going to cancel my green card. I hadn’t given this a thought, but research shows me I have to if I am no longer resident, and have no desire to return. Is there a benefit to doing it right away, or waiting until the 12 month period is up, when I think it happens by default? Are there any surprises I should be aware of? The advisor said that when it is cancelled, I would no longer have to declare monies held overseas (ie here in the UK). But would I still be doing a tax return for my retirement cheque from the teacher’s retirement system? Any help gratefully received. Thanks

Re: Relinquishing Green Card
 

I’ll move this to the US forums, as I think the good folks there may be able to help more.

After 30 years in the US, are you sure you want to give your LPR status up already? Might be worth waiting a few months in case you change your mind and want to ‘ping pong’ back again. Most people apply for US citizenship to give them that option, but if you didn’t do that it might be wise not to rush in to giving up your green card just in case? Your call obviously, but we’ve seen a lot of people move back to the UK after a long time abroad and regret it, so it my be worth considering waiting unless you’re 100% sure you’ll never want to move back to America.

Good luck with it.

Re: Relinquishing Green Card
 

Why would you need to do a tax return for the US if you return to the UK? I know we will as we are US citizens but I thought as a non-citizen, your tax obligations end once you leave the country.

Re: Relinquishing Green Card
 

Maybe not for the OP, but that’s not always the case…

https://www.irs.gov/individuals/inte...patriation-tax

Re: Relinquishing Green Card
 

I always thought that if you had been a LPR in the US, even when you left the US you still had to do a tax return.

Re: Relinquishing Green Card
 

Being a green card holder makes you as beholden to the US tax system as a US citizen. Abandonment of LPR status can also be subject to 'exit taxes' as much as relinquishing US citizenship these days.

Re: Relinquishing Green Card
 

OP sets fort facts indicating that it might be a very good idea to obtain competent professional advice before taking further action.

Additional point, my understanding is that expatriate US citizens can collect social security. Former LPR’s cannot.

Re: Relinquishing Green Card
 

Thanks, I appreciate this. I am 99.9% sure I’m staying in the UK. I have divorced my US husband and have no reason to return.

Re: Relinquishing Green Card
 

Thanks for all your replies! I definitely need tax advice now. I a currently receiving a retirement cheque from teaching and will qualify for social security in a few years. I guess I imagined I would always have to file in the US because of this. The financial advisor said that if I relinquish my green card, I would no longer have to also disclose monies held abroad. I chose my financial advisor because of the company’s experience with cross border issues, but they don’t handle tax. Does anybody have recommendations for tax preparers? I decided to leave the US without any consideration of financial implications! “.you don’t know what you don’t know!” I just knew it was time to come home and start afresh.
Many thanks!

Re: Relinquishing Green Card
 

A very timely post! We're looking to return to the UK in a few years time and will give up our GC's then.We're starting to sort out our 'exit' finances now to (hopefully) avoid any unpleasant surprises later on.
Based upon our understanding at the moment (which is not tax advice!), we believe that once we return our GCs we should not have to report US tax - except for the final (partial) tax year (if simple - maybe more complex if you have situations which have multi-year tax implications). Living in MD we also have to sell our house while still resident, otherwise if non-resident it would subject to tax. Our understanding of 'exit' taxes is that these are essentially any unpaid taxes. Finally, both myself and wife have sufficient contributions for social security, which we believe can still be paid - although all of this needs to be triple checked!
Like above, any link to a competent US/UK tax advisor would be useful!

Re: Relinquishing Green Card
 

Contrary to the OP's belief, his LPR status does not end after 12 continuous months abroad. He holds that status until it is taken from him at an immigration court or if he relinquishes the status formally.

Until he does that or it revoked, he needs to file US tax returns. It is part of holding LPR status. So formally relinquishing the status would be in his favor if he has no plans to return to reside in the US.

Re: Relinquishing Green Card
 

Thanks for this, it confirms what my advisor thought. By the way, I am she, not he, but you would have no way of knowing that! I will give up my green card right away. But will I still have to file taxes anyway because of my US retirement income, even though I will have relinquished my GC? I think the difference is I won’t have to declare overseas income.

Re: Relinquishing Green Card
 

This is on the SSA website:-

After 30 years in the US that is a heck of a chunk of change that has possible already been thrown away!

Re: Relinquishing Green Card
 

If I were the OP, I would take up US citizenship before leaving. I realise that means doing 2 tax returns in future, but from what I have read on this forum, it's not that difficult and doesn't normally incur any additional tax being paid as she would probably be under the financial threshold. Plus with the information that Ian has just posted, it might be necessary if she has 30 yrs of SS to claim.

Re: Relinquishing Green Card
 

As a USC there would also be the foreign earned income exclusion in addition to DTA… as an option, although it looks like pensions are excluded:

https://www.irs.gov/individuals/inte...come-exclusion