US Citizenship vs Greencard

[cafeconleche]

Yup, youre right. I agree with what was said in the link you posted. Unfortunately, I can't fight those nerds. I put money in my IRA, so for that at least I ought to file lest my contribution be called into question :/

 

[Hexa]

The income tax in the U.S. is on the edge of legality but we all agree to file it and pay it for the most part, however, I believe that income tax imposed on persons abroad is illegal. Something worth reading:

http://righteousinvestor.com/2011/11/13/is-the-taxation-of-us-citizens-abroad-constitutional/

I wonder how many US citizens who live abroad and are not compliant with the IRS are being prosecuted? Most of the measures enforced by the IRS are unconstitutional.

Let's leave the dubious tax protester scheme out of this immigration matter. The current law and regulation taxes U.S. citizens abroad; until the Supreme Court decides it's unconstitutional, you can legally be prosecuted for avoiding it.

 

[travelchick747]

4495665 76

REALLY???? This is your main reason? Since you are in a crime ridden state and also a 1099, why not move somewhere safer? Problem solved

I know it sounds crazy. Let me clarify. My contractor does not allow a day off. It is a loss of a week of work plus extra costs (fines) to replace me. This could be very steep if I can't negotiate with them. I believe the law is if they were my employer that they wouldn't have a leg to stand on. But it's a contract that I sign.

Moving to another state is not an option right now.

 

[travelchick747]

As a GC holder you are subject to world wide income taxation in the US, but I am sure you already knew that.

As a GC holder OR a citizen?

 

[Jackolantern]

As a GC holder OR a citizen?

Yes. GC holders and US citizens are both subject to taxation on worldwide income (with exemptions/credits/treaties to reduce or eliminate the double taxation).

But if you left the US permanently without US citizenship, you'd normally surrender your GC and no longer* be subject to US taxation or having to file tax returns. Whereas most US citizens who leave the US permanently keep their citizenship for life, and renunciation of US citizenship doesn't necessarily end the taxation (although it's hard to enforce that if they don't return to the US and don't have assets in the US).


*except for certain high net worth individuals who've had a GC for 8+ years

 

[Dedo]

As a GC holder OR a citizen?

Both!

 

[travelchick747]

The only tax advantage of US citizenship I can think of is that inheritances.

However you don't have to make up your mind right now; you can wait until the interview and tell the interviewer that you want to withdraw, or you if you haven't made up your mind by the interview you can buy more time by asking for an oath date after the end of December.

2 Questions.
1) Can you tell me more about the tax advantages you speak of with inheritances to US Citizens vs GC holders?
Is that cross border inheritances ie: a parent who passes away in Canada or if I pass away before my US spouse?

2) Buying time- how many delays (interview and/or oath) can I do before they withdraw my application?

Still on the fence.

 

[Hannah7]

...
But if you left the US permanently without US citizenship, you'd normally surrender your GC and no longer* be subject to US taxation or having to file tax returns. ...

Even if one moves out of the US "permanently", he had to put a lot of effort into getting the GC at some point of his life; so it makes sense to protect it by getting citizenship which cannot be taken away. Who don't know what the future holds right ...

I know that if I gave up my GC I woudln't have life energy to apply for it again in the future should I ever want to re-immigrate.

 

[Jackolantern]

2 Questions.
1) Can you tell me more about the tax advantages you speak of with inheritances to US Citizens vs GC holders?
Is that cross border inheritances ie: a parent who passes away in Canada or if I pass away before my US spouse?

For inheritances I think the only advantage applies to spouses, not parents or other relatives. If both spouses are US citizens, the inheritance from one to the other is totally tax free regardless of amount. But if one spouse is a noncitizen the amount above the estate tax exemption amount is taxable (however it might be taxable only in the US citizen -> noncitizen direction).

For transfers between living spouses, it's more complicated. Essentially the IRS is concerned about somebody transferring certain taxable assets to a noncitizen spouse to escape taxation, e.g. stocks with unrealized capital gains which are later sold by the noncitizen spouse after they leave the US. So they want to tax the transfer when it happens.

 

[octopus]

For inheritances I think the only advantage applies to spouses, not parents or other relatives. If both spouses are US citizens, the inheritance from one to the other is totally tax free regardless of amount. But if one spouse is a noncitizen the amount above the estate tax exemption amount is taxable (however it might be taxable only in the US citizen -> noncitizen direction).

For transfers between living spouses, it's more complicated. Essentially the IRS is concerned about somebody transferring certain taxable assets to a noncitizen spouse to escape taxation, e.g. stocks with unrealized capital gains which are later sold by the noncitizen spouse after they leave the US. So they want to tax the transfer when it happens.

Inheritance from a close relative non-citizen -> US citizen is tax free also?

 

[Jackolantern]

Inheritance from a close relative non-citizen -> US citizen is tax free also?

No. Only spouses can get an unlimited tax free inheritance. For every other type of relationship the inheritance is taxable if the estate exceeds the exemption limit ($5 million or thereabouts).

 

[Shalu]

Hi All,

Appreciate your time and patience in advance.

Myself:
Recently got married few months back. I am on my 2nd year of H1B Visa and my employer filed PERM in Aug 2014 in EB3 category.
I am waiting for Priority Date to come in March -2015 or April-2015 and then planning to do Premium for
I-140 approval and if I get promoted then planning to do the porting from EB3 to Eb2. And currently travelling to Canada once in a month.


My husband:
He lives in Canada and got his PR approved and still waiting for my Canada PR and expecting it to come sometime in
Febraury.
Also, he is expecting to get his Canada Passport with in the next 3 years from now.
After he gets his Canadian Passport can he come to US on TN visa or H1B visa. Which is more appropriate? Any other suggestions?
Eventually, we are planning to settle in USA, but not sure what to do at this point of time so we can stay together
with out any break in career or in the status for both if us?


Any ssuggestions are highly appreciated.



Thanks,
Shalini

 

[Jackolantern]

Hi All,

Appreciate your time and patience in advance.

Myself:
Recently got married few months back. I am on my 2nd year of H1B Visa and my employer filed PERM in Aug 2014 in EB3 category.
I am waiting for Priority Date to come in March -2015 or April-2015 and then planning to do Premium for
I-140 approval and if I get promoted then planning to do the porting from EB3 to Eb2. And currently travelling to Canada once in a month.


My husband:
He lives in Canada and got his PR approved and still waiting for my Canada PR and expecting it to come sometime in
Febraury.
Also, he is expecting to get his Canada Passport with in the next 3 years from now.
After he gets his Canadian Passport can he come to US on TN visa or H1B visa. Which is more appropriate? Any other suggestions?
Eventually, we are planning to settle in USA, but not sure what to do at this point of time so we can stay together
with out any break in career or in the status for both if us?


Any ssuggestions are highly appreciated.



Thanks,
Shalini

Please start your own thread in the Family Based Green Cards section. You are not in a situation where you are choosing between keeping your green card or obtaining US citizenship, as neither of you even have a green card yet.

 

[FriscoDude]

I became a US citizenship mostly because I always suspected there would come a time when I 'd want to live outside of the US, even temporarily, and I just didn't want to deal with re-entry permit or having to stress about coming back to the US every 6 or 12 months in order not to lose my residency. I wanted the freedom to come and go as I pleased, and at the same time, not burn any bridges.

I am glad I did as after 10 years in the US, I am now seriously thinking about leaving the US and going back to Europe, and will try to do so next year. Having a US passport provides me with the freedom to come back whenever I want (if I decide to). I'd say that's probably the main reason I became a US citizen.

In terms of benefits, I like to have the right to vote , but I would have never become a US citizen just for that benefit. I also always knew I'd have no interest in sitting on a jury or work for a federal agency, and I have another passport from a European country so traveling the world visa-free was never an issue, and it's obviously not an issue for you either, travelchick.

In any case, Travelchick, your reasons for being on the fence are valid. Personally, having US citizenship provides me a certain peace of mind , and I also think it's good to have options.

Edit: Just realized that the thread is a year-old, would want to know if the OP went through with the application.

 

[Hannah7]

FriscoDude:

I am completely with you! Being also from Europe I want to have a piece of mind traveling outside the U.S. Isn't it nice that we can just go live to old Europe and 20 years from now, should we want to come back to America, we are free to do so ?

Maybe one disadvantage is the world-wide tax imposed on U.S. citizens. But unless you actually owe some money to the government here, I doubt they will go after you even if you forget to file. My 2 cents on this matter.