US permanent resident tax question, income from overseas (green card, residents, citizens)
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I'm trying to figure out if a permanent resident, green card holder, has to pay income tax on income they make outside the US. I know US citizens have to pay income tax outside the US, but I can't find if that's true for permanent residents as well. We will be filing taxes, but my wife has some income that I wasn't sure if needs to be reported or not.
I'm trying to figure out if a permanent resident, green card holder, has to pay income tax on income they make outside the US. I know US citizens have to pay income tax outside the US, but I can't find if that's true for permanent residents as well. We will be filing taxes, but my wife has some income that I wasn't sure if needs to be reported or not.
Simple answer .... yes, you have to declare all income no matter where it is earned.
In addition, if you have bank accounts overseas, or if you have power of attorney over any foreign bank accounts (e.g. aging parents) then you have to declare those on your annual FBAR return. You also have to declare any foreign inheritance or gifts even if they are not taxable in the USA.
Simple answer .... yes, you have to declare all income no matter where it is earned.
In addition, if you have bank accounts overseas, or if you have power of attorney over any foreign bank accounts (e.g. aging parents) then you have to declare those on your annual FBAR return. You also have to declare any foreign inheritance or gifts even if they are not taxable in the USA.
Simple answer .... yes, you have to declare all income no matter where it is earned.
In addition, if you have bank accounts overseas, or if you have power of attorney over any foreign bank accounts (e.g. aging parents) then you have to declare those on your annual FBAR return. You also have to declare any foreign inheritance or gifts even if they are not taxable in the USA.
Simple answer .... yes, you have to declare all income no matter where it is earned.
In addition, if you have bank accounts overseas, or if you have power of attorney over any foreign bank accounts (e.g. aging parents) then you have to declare those on your annual FBAR return. You also have to declare any foreign inheritance or gifts even if they are not taxable in the USA.
If your home country has a tax treaty with the U.S., you need to read the treaty to find out how to handle the income. Some countries tax treaties allow for a citizen of that country to decide where to file that income. I'll give an example.
I am a citizen of country A, and a U.S. permanent resident. I have retirement income from country A. My tax treaty states that I can file a country A tax return and claim this income. The U.S. will recognize the filed country A tax return, so I can exclude that income from my U.S. return.
You should only choose this option if there is a tax benefit. Also be prepared to send a copy of your U.S. return to your home country if you claim all of the income on your U.S. return.
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