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asinghal · Jan 11, 2013, 03:06 PM

Hello,

I am Anurag, a US green card holder. I cam in US in Sept 2012, started job in Nov 2012 and now I am planning to move back to India because of personal reasons. I will be quitting my job in Feb 2013 and will move to India in March 2013, permanently.
So, for year 2012 I will be receiving W-2 and I will file taxes in Feb as I am here in US till March. But the problem arises that how will I file taxes for this year(2013) as I will migrate to India ? Please help me out to cope up with this situation as I am getting sick thinking of this problem. Also tell me the consequences if I file tax for 2012 and not for 2013. Do I need to file taxes in US for rest of my life (even after migrating)? I don't want be trapped even after going back.

AtlantaTaxExpert · Jan 11, 2013, 08:57 PM

Anurag:

As long as you hold the green card, you are required to file a normal U.S. tax return. Due to the Foreign Earned Income Exclusion and the Foreign Tax Credit, you will probably pay no taxes, but you WILL be required to file the tax returns.

Further, if you have over $10,000 in foreign bank accounts, you have to submit the FBAR annually.

The way to avoid this is to surrender your green card, something you can do at the U.S. embassy in Mumbai, India.

asinghal · Jan 11, 2013, 09:34 PM

Thank you for help, but as I am new in US and new to taxing procedures, I exactly didn't get the solution. Ok lets say, if I go back in March and surrender my green card then will I have to file taxes for this year 2013(will be working for 2 months) ?

AtlantaTaxExpert · Jan 11, 2013, 09:37 PM

Yes, you will have to file for 2013, but after that, you will be DONE!

asinghal · Jan 13, 2013, 10:40 AM

I came to know that its not necessary for all to file taxes if their gross income is below a certain level. Like I researched a lot and found one tabular data that shows who has to file taxes depending on age and filing status.
Like I am 23, single and just earned around $3500 in 2012 and $160 has been deducted from my income as federal tax. Now do I have to file taxes ?

AtlantaTaxExpert · Jan 13, 2013, 10:58 AM

With an income that low, you do NOT have to file.

However, in order to get the $160 in withheld federal income tax BACK as a refund, you DO have to file to get the refund.

asinghal · Jan 13, 2013, 01:56 PM

Thank you very much, I was too worried and almost sick thinking what will happen if I fail to file even with such a low income as I thought I will commit a crime not filing... even I will get the refund instead...

AtlantaTaxExpert · Jan 13, 2013, 02:03 PM

Glad to help!