New Residents & Taxes

You don't have to, but there is nothing wrong in doing so, and it may be useful in the future as a way of demonstrating residency.
 
bizza said:
Hi,

Does someone has to file tax returns with a zero income?

Thanks,
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Not necessary, but please note that taxation of permanent residents is very different from visa holders like H1-B etc.
Income taxes may be similar but other taxes like estate tax, gift tax etc. change.
 
I think Turbo Taxs' website may actually let you do it for free. you should always file taxes ...
 
atrayapr1 said:
Not necessary, but please note that taxation of permanent residents is very different from visa holders like H1-B etc.
Income taxes may be similar but other taxes like estate tax, gift tax etc. change.
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I'm not a tax expert, but is that true ?
 
I am also having the same problem. Came here in Oct and worked few days in Dec 2008 and my income was zero. Went to like 5 taxes offices and they told me I cant not file because my income in zero. So I will not be filling for 2008.
 
smarley said:
I am also having the same problem. Came here in Oct and worked few days in Dec 2008 and my income was zero. Went to like 5 taxes offices and they told me I cant not file because my income in zero. So I will not be filling for 2008.
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If you have a GC, you MUST file as a resident, and you should file. Which "Tax Offices" did you talk to?
 
H & R BLOCK 3550 W Century Blvd Inglewood,CA and other H and R Branches like the one in Manchester and Hillcrest, Manchester and Creshsaw.
 
If your income is below the threshold and you don't have any transactions the IRS need to know about like the sale of real estate or stocks, you don't need to file (check the 1040 instructions for details).

If you have long trips outside the US it is advisable to file taxes in order to provide another piece of evidence of maintaining ties to the US, but otherwise you're not going to run into trouble if you don't file for a year when you don't meet the criteria for being required to file. However, those who say you cannot file with zero income are wrong.
 
However, those who say you cannot file with zero income are wrong.
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Absolutely. I get the feeling that we've become so reliant on tax software, that when one can't do something with the software, they automatically assume that they musn't be allowed to do so by law.
 
atrayapr1 said:
Absolutely true. You are liable for estate taxes on your worldwide assets if you are a permanent resident. That means your children are on the hook for an approx. 50% haircut of all your assets before they see any of it after a deduction. Check out
http://www.thefreelibrary.com/U.S.+estate+tax+exposure+for+foreign+nationals.-a062725164
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Since you mentioned "world wide"... What happens if estate tax was paid in the country where the estate belongs to ? Taxing on it in the US means double taxing. Doesn't it depend on tax treaty rather than blanket 50% rate ?
 
GotPR? said:
Since you mentioned "world wide"... What happens if estate tax was paid in the country where the estate belongs to ? Taxing on it in the US means double taxing. Doesn't it depend on tax treaty rather than blanket 50% rate ?
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Yes, there are treaties and other exemptions that can be used to avoid double taxation.
 
Good topic guys!

I have zero income as a student, so I don't have to file tax returns for 2008, right?

But I have long absences from the United States, would it help to file tax return even with zero income and use it as a proof of permanent residency?

And another question, how to file the taxes with zero? Any manual?
 
File 1040EZ, and put zeroes in the appropriate places.

However, you should also be aware that the interest on all bank accounts worldwide (except tax-sheltered accounts like IRA etc.) is taxable income, so if you have gained even a few dollars in interest, your income is not zero.
 
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