GC holder working overseas

P

Pilot Swede

New Member
Hi folks,

I guess I really have two questions, one purely immigration related and one partially tax- and immigration related.

I recently took a job with a US employer who are running an operation overseas which I will soon be transferred to. Soon this operation will be free standing with a local business license and I will be employed in this country instead of in the US, with the option of coming back to the US operation after a minimum of two years.

Earlier this year I had my green card renewed and it's good for almost another ten years. I will be coming back to the US for training at least every six months and I am married to a US citizen who will move with me overseas.

My first question is, could I face any problems with my reentries when coming back to the US twice a year? Do I need to file a "leave of absence" application?

To be excluded paying US taxes I aim to apply for Bona Fide Residence while working overseas.

Second question, does anyone here have any experience with this as a GC holder, and are there any pitfalls I need to watch out for?

Thanks guys..
 
Get a reentry permit, or be prepared for hassles when returning just once a year. The reentry permit is the equivalent of the "leave of absence" application that you're thinking about. You need to be in the US when the application is filed (including the day USCIS receives it), and also to show up for a fingerprinting appointment at an immigration office a few weeks after the application is filed. The approval should happen a few months after that; it can be delivered to your US address or to a consulate abroad.

And if you're interested in US citizenship, apply for an N-470 so the time you spend abroad will not reset your 5-year eligibility clock.
 
Couple of things ...
#1. You got your green card renewed. Is it because it expired after 10 years, or to remove conditions. If you have had green card for 10 years, why not become citizen and avoid all CIS hassles?

#2. To become a citizen, you should file taxes as a resident ... as long as you carry the green card. Check the specifics ... I am sure they will let you deduct foreign taxes paid, but bona fide residence in a different country ... it may not be so clear (but I am also not 100% sure).
 
sanjoseaug20 said:
Couple of things ...
#1. You got your green card renewed. Is it because it expired after 10 years, or to remove conditions. If you have had green card for 10 years, why not become citizen and avoid all CIS hassles?
I became a GC holder January 2008 and just had the conditions removed keeping my alien resident rights for the next 10 years.

As far as the taxes I am waiting on a call back from a tax adviser on foreign income, not easy trying to combine both the immigration- and tax laws and still do everything the right way.
Click to expand...
 
As far as the taxes I am waiting on a call back from a tax adviser on foreign income, not easy trying to combine both the immigration- and tax laws and still do everything the right way.

... YES. But remember the basic rule, do not file as NON RESIDENT if you want citizenship down the line.
 
sanjoseaug20 said:
... YES. But remember the basic rule, do not file as NON RESIDENT if you want citizenship down the line.
Click to expand...
The tax adviser agreed with me and thought it be best I file as Bona Fide resident when I file for my taxes to keep my GC status. What I'm still not quite clear on is whether or not I need to file for "leave of absence" with immigration before leaving. Does anyone know?
 
There is no such thing as leave of absence with immigration. JackLantern already addressed your concern that Rentry Permit (I-131) is what you need and will be the document you keep referring to as leave of absence with immigration.
 
Unless you do something stupid like filing non-residential taxes, I think coming back every 6 months would be OK to keep your green card. Providing you are going to do that, say, for only 1 or 2 years.

Or get the mentioned re-entry permit to be on a safe side.

However this is just my opinion, I'm not lawyer.
 
Pilot Swede said:
The tax adviser agreed with me and thought it be best I file as Bona Fide resident when I file for my taxes to keep my GC status.
Click to expand...

Tax advisers are not immigration experts! Filing as a bona fide resident of a foreign country may be better from a tax perspective, but would screw up your situation from an immigration perspective and make it more difficult for you to keep the green card or get citizenship.
 
Most countries have sth like double taxation treaties, which means you don't have to tax your income two times in each country.

So if I get it correctly, you can pay taxes in the country you're moving to, but claim those incomes in the U.S.
 
The US tax your worldwide income. You can either exclude up to I think 94,000 of foreign income (and then pay the tax on the remaining part at the rate that would apply if you didn't exclude anything) or you can deduct foreign taxes paid.
The state taxes are a bigger problem. Some will not tax you, some of them will tax everything (CA comes to mind).
 
sotiredofwaiting said:
The US tax your worldwide income. You can either exclude up to I think 94,000 of foreign income (and then pay the tax on the remaining part at the rate that would apply if you didn't exclude anything) or you can deduct foreign taxes paid.
Click to expand...

To take that $94K exclusion, one would have to file form 2555 and claim to be a bona fide resident of another country -- but that could cause trouble for keeping the green card and obtaining citizenship. Somebody who wants to keep their green card and become eligible for citizenship would be better off using other credits, deductions, and/or treaties to reduce or eliminate the double taxation.
 
Jackolantern said:
To take that $94K exclusion, one would have to file form 2555 and claim to be a bona fide resident of another country -- but that could cause trouble for keeping the green card and obtaining citizenship. Somebody who wants to keep their green card and become eligible for citizenship would be better off using other credits, deductions, and/or treaties to reduce or eliminate the double taxation.
Click to expand...

Merely being a tax resident of another country doesn't cause one to lose GC, since one can be a resident of multiple countries at the same time. Until not long ago, it was possible for me to be a Canadian tax resident despite never spending a day in Canada, based on my spouse's employer. What matters most is ensuring that one files a US resident tax return.

With a re-entry permit, it's quite possible to take a temporary but long term absence from the US that would make one a tax resident of another country.
 
Jack and TRC,

Why are guys fighting with each other? It seems as if each time one posts something, the other find something to pick with the other's posts. Did you guys date briefly on the board, never liked each other? Can't we all get along well together?

I am warning both of you, unless you stop biting each other, I am going to organize a pay-per view special, and both you guys will settle your dispute like real men. Just like Barney Frank did with the dining room table lady...

http://blogs.wickedlocal.com/masspolitics/2010/09/08/video-barney-frank-debates-rachel-brown/
 
TheRealCanadian said:
Merely being a tax resident of another country doesn't cause one to lose GC ...
Click to expand...
I didn't say it would by itself result in losing the GC, I said "could cause trouble", given what one has to assert to qualify for the 2555.

With a re-entry permit, it's quite possible to take a temporary but long term absence from the US that would make one a tax resident of another country.
Click to expand...
Like you said, you may be considered a tax resident of a foreign country from that country's perspective based on whatever criteria they have, even if you never spent a day in that country. But for the purposes of IRS and the 2555, it says that you are not considered a tax resident for any period when your abode was the United States. To maintain your green card, and more strictly to maintain continuous residence for qualifying for naturalization, your abode is normally supposed to be the United States.
 
Last edited by a moderator:
Jackolantern said:
To take that $94K exclusion, one would have to file form 2555 and claim to be a bona fide resident of another country -- but that could cause trouble for keeping the green card and obtaining citizenship. Somebody who wants to keep their green card and become eligible for citizenship would be better off using other credits, deductions, and/or treaties to reduce or eliminate the double taxation.
Click to expand...

Please take a look here, bona fide residence is not the only option, there is also the physical presence test.
http://www.irs.gov/businesses/small/international/article/0,,id=97130,00.html
 
You must log in or register to reply here.
Top