[aditya999]

I wish to relocate to India permanently next month. I am a green card holder. Can I pay taxes for income earned in 2012 before leaving? Will I get W-2 from my company and 1099 from financial institutions before leaving or do I need to wait till Jan 2013? Also, since I don't plan to return to USA, do I need to report my income in India to IRS? Can I receive social security benefits before leaving or do I need to wait till I turn 62? Thanks

[AtlantaTaxExpert]

The W-2 and 1099-INT will be issued in January 2013, and no sooner. If you worked under a W-2, taxes were already withheld from your salary.

You will need to file a tax return in 2013 from India, but that should not be too hard given access to the Internet.

If you want my professional help, double-click on my title above and scroll down to my profile/signature. You will find my email address and websites there if you cannot see it on this page.

[AtlantaTaxExpert]

As for the Social Security benefits, the earliest you can apply for benefits is when you turn 62.

[MukatA]

Even if you relocate to India, you must file U.S. tax return every year. If you are self employed in India, you must also pay Self employment tax.
For 2012 tax return, you must report U.S. income as well as income earned in India till Dec 31, 2012.
Also if you do not intend to return to U.S. why do you need green card. You may surrender this. If you have green card, you can not leave U.S. for a long period.

[aditya999]

The W-2 and 1099-INT will be issued in January 2013, and no sooner. If you worked under a W-2, taxes were already withheld from your salary.

You will need to file a tax return in 2013 from India, but that should not be too hard given access to the Internet.

If you want my professional help, double-click on my title above and scroll down to my profile/signature. You will find my email address and websites there if you cannot see it on this page.

Thank you ! Since I'll be closing the bank accounts and resigning from job, I wasn't sure if my company and banks would agree to either email me or mail me the W2 and 1099 to my address in India. Once I have that info, I should be able to contact you to file it online. Do you know if they will send it to India or do I need to open a P.O box here before leaving and ask a friend to check it?

[aditya999]

As for the Social Security benefits, the earliest you can apply for benefits is when you turn 62.

Thanks ! Does that mean social security number remains active even after green card gets canceled or expires due to extended stay outside USA and I am no longer a US resident? When I turn 62, I just use my SSN and contact a US consulate to get the benefits? I was hoping I could get the benefits before leaving.

[aditya999]

Even if you relocate to India, you must file U.S. tax return every year. If you are self employed in India, you must also pay Self employment tax.
For 2012 tax return, you must report U.S. income as well as income earned in India till Dec 31, 2012.
Also if you do not intend to return to U.S., why do you need green card. You may surrender this. If you have green card, you can not leave U.S. for a long period.

Thanks ! Since green card expires after 1 yr outside US and I'm not a citizen, do I have to pay taxes after 1 yr? If so, is it because SSN remains active even though I'm not a resident anymore? Do you suggest canceling SSN before leaving?

[AtlantaTaxExpert]

The SSN remains active, even after you cancel the green card.

Once the green card is formally surrendered, no tax return is required.

[Unhappy Sally]

My understanding based on reviewing the requirements of forfeiting your green card is that you are likely to fall under the US Exit Tax. The Exit Tax is equivalent to paying death duties on your worldwide assets if you meet ANY ONE of a number of criteria. If you are a green card holder and have been residing in the US for more than 7 years you qualify.

This tax is substantial and depending on the type of assets you have may result in you having to stay in the US particularly if you are at retirement age. You can find a very good explanation of it at "renunciationguide.com", see Guidance for Expatriates Under Section 877A on the "irs.gov" site.

My personal feeling is that anyone coming to the US and intending to take up a Green card or stay in excess of 7 years but intending to return to their original country should have this information explained up front.

[AtlantaTaxExpert]

Sally:

That MAY be true (I have not researched it), but I do know that the OP has has to have SUBSTANTIAL assets to be subject to such taxes. Based on what was posted, I doubt if he meets the threshold.

[aditya999]

I got my green card 2 years ago. If I surrender green card within next 6 years, do I still have to worry about any tax reporting (including exit tax) to IRS after that?
Thank you in advance !

My understanding based on reviewing the requirements of forfeiting your green card is that you are likely to fall under the US Exit Tax. The Exit Tax is equivalent to paying death duties on your worldwide assets if you meet ANY ONE of a number of criteria. If you are a greencard holder and have been residing in the US for more than 7 years you qualify.

This tax is substantial and depending on the type of assets you have may result in you having to stay in the US particularly if you are at retirement age. You can find a very good explanation of it at "renunciationguide.com", see Guidance for Expatriates Under Section 877A on the "irs.gov" site.

My personal feeling is that anyone coming to the US and intending to take up a Green card or stay in excess of 7 years but intending to return to their original country should have this information explained up front.

[AtlantaTaxExpert]

Probably not, no!