SusieQQQ
Well-Known Member
If there is anything missing from the forms your interview letter will note that. If you are current and have sent your forms in, you will get an interview slot.
2014 DV Australian winners
- Thread starter AU.Dan
- Start date
If there is anything missing from the forms your interview letter will note that. If you are current and have sent your forms in, you will get an interview slot.
AFP2014
New Member
Tax Man
I was thinking it was a simple enough situation for us, and an easy decision anyway, so we’d do it. But afterward, on completion of the DV process, the US tax scenario scares me more than anything. So I’m trying to figure that out before I rush in.
I have read about dual citizens and the US tax on world-wide income and net worth, but I don’t understand it yet. I need to figure out how obtaining the Green Card affects my Australian investments and the income I derive from them. I won’t be selling up my home and investments in the move to the US. I don’t have to make a choice between AUS and USA, right? The information I have come across, I haven’t figured out what any of it means, so it is starting to scare me a little bit.
Obviously, if it’s not a financially smart move, who could do it? Most of us in the OC are not tired, poor and yearning to breathe free. I know how lucky we are to have this opportunity, but I also know how fortunate we are to call Australia home. My motivation in the move to the US is for the experience and increased opportunities that will be available career wise. The way I am approaching it, I’m simply relocating and changing postal addresses, but I’d be a dual citizen with all the good things that come with that. Is it as simple as that? What are the negatives to this great opportunity that I haven’t considered? I know there are other participants in other regions who would kill for this chance. Asking this makes me feel a little spoilt.
I want to make it work, I’m serious about it, but let’s say it doesn’t… then there is an exit tax! I think that one is only a problem if I hand back the Green Card after 8 years… But these are all things I need to clarify.
I’m relieved to hear you still consider my number safe Britsimon . I do want this. So I’m going to keep moving forward with the medicals and thinking out that marriage idea, but any light the more tax educated may be able to shed, I would be so, so grateful.
Thanks again Britsimon, good luck with your process, and apologies for another “wordy” post! Have a great day everyone.
Am I married yet? haha. Not you too! It is still the big question. Funnily enough, I attended a family wedding on the weekend, with the Bride and Groom in very similar circumstances, but they desired a UK visa.
I was thinking it was a simple enough situation for us, and an easy decision anyway, so we’d do it. But afterward, on completion of the DV process, the US tax scenario scares me more than anything. So I’m trying to figure that out before I rush in.
I have read about dual citizens and the US tax on world-wide income and net worth, but I don’t understand it yet. I need to figure out how obtaining the Green Card affects my Australian investments and the income I derive from them. I won’t be selling up my home and investments in the move to the US. I don’t have to make a choice between AUS and USA, right? The information I have come across, I haven’t figured out what any of it means, so it is starting to scare me a little bit.
Obviously, if it’s not a financially smart move, who could do it? Most of us in the OC are not tired, poor and yearning to breathe free. I know how lucky we are to have this opportunity, but I also know how fortunate we are to call Australia home. My motivation in the move to the US is for the experience and increased opportunities that will be available career wise. The way I am approaching it, I’m simply relocating and changing postal addresses, but I’d be a dual citizen with all the good things that come with that. Is it as simple as that? What are the negatives to this great opportunity that I haven’t considered? I know there are other participants in other regions who would kill for this chance. Asking this makes me feel a little spoilt.
I want to make it work, I’m serious about it, but let’s say it doesn’t… then there is an exit tax! I think that one is only a problem if I hand back the Green Card after 8 years… But these are all things I need to clarify.
I’m relieved to hear you still consider my number safe Britsimon . I do want this. So I’m going to keep moving forward with the medicals and thinking out that marriage idea, but any light the more tax educated may be able to shed, I would be so, so grateful.
Thanks again Britsimon, good luck with your process, and apologies for another “wordy” post! Have a great day everyone.
paulthegolfer
New Member
IRS - Tax
Have an appointment with our accountant early February - hope it becomes a lot clearer.
Have an appointment with our accountant early February - hope it becomes a lot clearer.
CollingwoodRuck
Registered Users (C)
Hi Paul,
Make sure you use an Accountant who understands the IRS rules - you should be able to get a list of qualified ones from the local US consulate.
It is very complicated if you have substantial super; simply put it appears the IRS is taxing the income on an annual basis at rates higher than Australia. For you, this could be a non-issue, a slight bug-bear or a game changer. But you need to know the cost before taking the plunge.
The average Australian Accountant is so far out of their depth that it is not worth the time.
Best
Make sure you use an Accountant who understands the IRS rules - you should be able to get a list of qualified ones from the local US consulate.
It is very complicated if you have substantial super; simply put it appears the IRS is taxing the income on an annual basis at rates higher than Australia. For you, this could be a non-issue, a slight bug-bear or a game changer. But you need to know the cost before taking the plunge.
The average Australian Accountant is so far out of their depth that it is not worth the time.
Best
Britsimon
Super Moderator
Am I married yet? haha. Not you too! It is still the big question. Funnily enough, I attended a family wedding on the weekend, with the Bride and Groom in very similar circumstances, but they desired a UK visa.
I was thinking it was a simple enough situation for us, and an easy decision anyway, so we’d do it. But afterward, on completion of the DV process, the US tax scenario scares me more than anything. So I’m trying to figure that out before I rush in.
I have read about dual citizens and the US tax on world-wide income and net worth, but I don’t understand it yet. I need to figure out how obtaining the Green Card affects my Australian investments and the income I derive from them. I won’t be selling up my home and investments in the move to the US. I don’t have to make a choice between AUS and USA, right? The information I have come across, I haven’t figured out what any of it means, so it is starting to scare me a little bit.
Obviously, if it’s not a financially smart move, who could do it? Most of us in the OC are not tired, poor and yearning to breathe free. I know how lucky we are to have this opportunity, but I also know how fortunate we are to call Australia home. My motivation in the move to the US is for the experience and increased opportunities that will be available career wise. The way I am approaching it, I’m simply relocating and changing postal addresses, but I’d be a dual citizen with all the good things that come with that. Is it as simple as that? What are the negatives to this great opportunity that I haven’t considered? I know there are other participants in other regions who would kill for this chance. Asking this makes me feel a little spoilt.
I want to make it work, I’m serious about it, but let’s say it doesn’t… then there is an exit tax! I think that one is only a problem if I hand back the Green Card after 8 years… But these are all things I need to clarify.
I’m relieved to hear you still consider my number safe Britsimon . I do want this. So I’m going to keep moving forward with the medicals and thinking out that marriage idea, but any light the more tax educated may be able to shed, I would be so, so grateful.
Thanks again Britsimon, good luck with your process, and apologies for another “wordy” post! Have a great day everyone.
We have had this discussion to a great extent in the forum. Obviously the impact changes based on your home country, but the paperwork is an additional cost that many people find too much to deal with, so they hire accountants to complete paperwork even when there is no US tax to pay.
If the Aus tax rate is lower than US you may pay a top up of the taxes on some things. However, what I found annoying is that everything had to be calculated into dollars so if you owned an investment (or house, whatever) in Aus and you bought for 1 million Aus$, and later sold for the same value there would be no tax. Well the US government would want the purchase and sale prices converted into US dollars and that might lead to a perceived profit - on which they would want tax. Now imagine that on something where you had been saving regular amounts over a period of years. That is exactly why I have just sold a bunch of shares in the UK and also cashed in 10 years worth or ISAs (UK tax free savings accounts). The paperwork on those things would be a pain in the butt, so I am taking that as cash. I am keeping some UK and EU property and several bank accounts. The income from those will have to be reported and the bank accounts declared. Is it all worth it? Well, it is marginal. We lead a very nice life in the UK, somewhat the same as the life we will live in the USA. Seriously, if it weren't for the UK weather we would probably not be doing this....
Lots of useful tax discussion here
http://forums.immigration.com/showt...EVER-consider-living-outside-of-the-USA-again
Last edited by a moderator:
OnTheGo
Registered Users (C)
Question regarding the National Police Check:
When residing overseas (i.e. outside of Australia), where does it state if fingerprints are required for the purpose of getting Australian Police certificates? From
Even on the printed form, it states:
Not needing fingerprints means we can actually lodge the request online and save a couple of hundred dollars between the two of us! More importantly, the online process is way more efficient and faster.
When residing overseas (i.e. outside of Australia), where does it state if fingerprints are required for the purpose of getting Australian Police certificates? From
Even on the printed form, it states:
Not needing fingerprints means we can actually lodge the request online and save a couple of hundred dollars between the two of us! More importantly, the online process is way more efficient and faster.
OnTheGo
Registered Users (C)
Well, first: Reporting income from sources outside the US while actually living in the US is nothing unusual...most countries would require you to report on ANY income you derive from anywhere in the world, for as long as you live in their jurisdiction.
But the USA is (apart from Eritrea) the only developed nation in the world to unfortunately still hold onto what's called a "citizenship based" taxation system, whereby it apparently doesn't matter, where in the world you live to STILL having to submit income taxes.
The "citizenship" in that context means citizens and LPR's alike!
So anyone activating their green card status for the first time by crossing the border after being approved permanent resident status will be liable to submit tax returns to the IRS from the following year onwards, and more recently, a separate FBAR form to the Dept of Treasury. The latter especially has created a lot of controversy, given that banks world wide have been bullied into submitting details of account holders with US tax obligations to the IRS from their end, anyway. Even more controversy and outcries from many of the millions of US expats living overseas, arguing for the unfair and unwarranted case of having to report any incomes back to the US while they are living overseas.
So in short: Yes, this tax thing applies to both citizens and green card holders. The only exception is that green card holders will not have to worry about an additional "exit tax" when they decide to give up on their green card prior to eight years of consecutive living in the US (within the past 15 years), whereas citizens wanting to forfeit their citizenship will be facing red tape and the exit tax if their world wide assets (or theoretical 'profits' of the sale) were above certain thresholds.
Hi guys,
Back here with another odd question. I'm in Australia and 100% going current in April (rank # low 800s). A wee spanner's been thrown in the works, though: there's a chance I'm about to be offered a pretty amazing job in SE Asia very soon. It's short-term, but if successful, I'd like to take it in the interim between now and (if I may be so presumptuous) moving to the US once I pass the interview (positive thinking!). This would obviously mean I'd have to attain a working visa for the country where the job is. Does anybody know if this would screw up my chances at the US Consulate interview (which I'd probably just fly back to Sydney for)?
Always making life so difficult for myself!
Back here with another odd question. I'm in Australia and 100% going current in April (rank # low 800s). A wee spanner's been thrown in the works, though: there's a chance I'm about to be offered a pretty amazing job in SE Asia very soon. It's short-term, but if successful, I'd like to take it in the interim between now and (if I may be so presumptuous) moving to the US once I pass the interview (positive thinking!). This would obviously mean I'd have to attain a working visa for the country where the job is. Does anybody know if this would screw up my chances at the US Consulate interview (which I'd probably just fly back to Sydney for)?
Always making life so difficult for myself!
Also one more Q, sorry... if I'm current in April, does anybody know what I could expect the 'deadline' to be for moving to the US/activating the green card? Is there the possibility of going over there to 'activate' my green card and coming back to wrap up affairs (and should I even be flirting with this idea!)??
OnTheGo
Registered Users (C)
From what I understand, you have 6 months from the date of your medicals (!) to enter the US to activate your green card status. I don't see any reason why you should not be taking up the interim job opportunity. It's up to you to what extend you want to mention your plans during the interview.
One thing to be aware of, as soon as you activate your green card, you will be liable to file US tax returns (and Fbar reports) as of the following year, even if you still live and work outside of the US. As a green card holder you are legally required to report your world wide income to the IRS, just like any US citizen is. That in itself does not necessarily mean that you will end up paying tax to the US, but be aware of the requirement to file. Say you don't pay much tax at all (in some Asian jurisdictions that may be the case) and you happen to earn really well, then you may end up paying...if and when you also exceed the foreign earned income exclusion threshold. See here:
http://taxes.about.com/od/taxhelp/a/ForeignIncome.htm
I just went for my interview last week and asked them specifically if I needed a fingerprint check or would a name check suffice. They asked if I had changed my name and I answered no - my interviewer then said that just a name check is fine, then.
Britsimon
Super Moderator
You must activate before the first entry deadline which is normally 6 months although some people get less time because their medicals restrict the date. Once you enter to activate your card you can then leave for up to 12 months without issue. That period can be extended for up to 2 years if you apply for a permission before you go.
SusieQQQ
Well-Known Member
This is correct, but bear in mind an absence of longer than 6 months will probably subject you to additional scrutiny/questioning on entry. I've heard this reported anecdotally and then came across a similar indication in something official recently.
Britsimon
Super Moderator
Ooh interesting. Thanks Susie. I read something the other day that stated that someone who has lived in USA for a while and then took a trip outside less than one year was questioned and had to prove that they maintained their residence during the absence. I assume they give newbies wrapping up affairs in the home country a little more latitude, but it underlines your point - you could always face a grilling...
SusieQQQ
Well-Known Member
The issue is showing you have not abandoned residence so, bank accounts, an address and the all-important tax filing are key.
Also remember if you are gone longer than 6 months the residency period for citizenship resets to the later entry date, whereas for less than 6 months it still starts from date of first entry.
Last edited by a moderator:
OnTheGo
Registered Users (C)
Thank you!! This also answers my question.
The only other still unanswered question with regard to police checks (from countries other than Australia) I have, is whether there is an expiry to existing police certificates (issued years ago covering residence for those past times). I may have to ask the local embassy, as I could not find anything on that anywhere.
Britsimon
Super Moderator
Police certs generally do have an expiry date (they do in the UK for instance). However, if you have not returned to a country you could argue that a years old certificate contains up to date information, but do you want to have to rely on making that argument during your interview? So, I would advise renewing them if possible. However, if you go with the old certs and they do not accept them, I suppose the most likely downside would most likely be AP pending a new cert. There was someone recently who took that gamble and the old cert was accepted - but I suspect a different CO would treat that differently.
OnTheGo
Registered Users (C)
Thanks Simon, I can certainly see your point here. My wife in fact made another point, which is: A police certificate that is ten years old (for instance) does not prove that you did not in fact re-enter that country and stayed for another period as a resident, or even entered as a tourist and committed a crime.
In our case, we lived in Ireland between 1999 and 2001 (during the good times) and have police certificates from the Guardia there, dated 2002 and covering our residence there.
Then my wife has a police certificate for her time in Switzerland going back even further.
We have not gone back to either country since, neither as residents nor as tourists.
I think it is safe to say it would be better to get updated police certificates - I am just wondering how that is going to work out, as the Irish info indicates they made changes, so for instance the local Guardia station is responsible for issuing them.
I will simply add copies of the old certificates to our requests and see what happens.
As a point of interest, how long are UK police certs valid for?
Britsimon
Super Moderator
Yep your wifes point is what I was getting at - the argument being trying to convince the CO that you had not re-entered that country since the cert was issued.
For the British cert I think ACPO words it something like there is no set expiry date as such BUT they advise using one less than 6 months old (if you are going to the embassy. In reality a police cert is out of date the day after it is produced - again your wife has explained why....