Ask Experts Questions for FREE Help !
Ask
    hdo_zorrilla's Avatar
    hdo_zorrilla Posts: 1, Reputation: 1
    New Member
    		  
    #1

    Feb 10, 2009, 02:57 PM
    US tax return for a green card holder living in Canada
    My family (wife & 2 kids: 20 and 22) and I are Canadian citizens living in Canada. We received our US green cards (Permanent Residence Status) two years ago.

    Because of our employment and schooling situation we haven't move to US yet and, have no income from there. We have kept our green cards by entering regularly to US twice a year.

    In this scenario:

    1- How important is for us to file a US tax return?
    2- What could happen if we don't do that for, let's say, 3 more years?
    3- If after 3 years from now we effectively move to US, what are the implications of not having a tax return for the previous years?
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #2

    Feb 25, 2009, 10:58 AM
    Green card holders are required by law to file annual U.S. tax returns until they formally renounce their green card status.

    If you fail to do so, and you OWE taxes, it could result in some nasty late filing penalties, plus the accrued interest.
    mhscga's Avatar
    mhscga Posts: 1, Reputation: 1
    New Member
    		  
    #3

    Aug 30, 2009, 07:45 PM
    Hi,

    Responding to your scenerios:
    In this scenario:

    Q 1- How important is for us to file a US tax return?
    A As a Green card holder you are required by US law to file

    Q 2- What could happen if we don't do that for, let's say, 3 more years?
    A Penalties and interest at the least... possible cancellation of your Green Card status worst case

    Q 3- If after 3 years from now we effectively move to US, what are the implications of not having a tax return for the previous years?
    A Cancellation of your Green Card status and denial of reinstatement of status

    Why risk the losing your Green Card status when complying with the filing rules is easy.

    I'm a Certified General Accountant in Toronto that handles similar client situations at a reasonable cost and painless method... most times avoiding any payment of US taxes.

    M H Storoszko, CGA
    Www.storoszko.net
    MukatA's Avatar
    MukatA Posts: 7,110, Reputation: 176
    Tax Expert
    		  
    #4

    Aug 30, 2009, 11:42 PM

    If your total worldwide income exceeds the filing requirement, you must file your U.S. tax return. On your return, you must report your world wide income. If you paid taxes in the foreign country, you will claim credit for taxes paid in the foreign country by filing Form 1116 or can file form 2555 Foreign Earned Income Exclusion..
    Even if you have a filing requirement, the chances are you will not pay any U.S. tax or pay very little U.S. tax. Read: Your U.S. Tax Return: U.S. Citizen or Resident with Foreign Income
Not your question? Ask your question View similar questions
 

Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.


Check out some similar questions!

Green card holder [ 2 Answers ]

Can a green card holder travel to Europe for vacation & if so, what are the requirements?:confused:

Green card holder [ 1 Answers ]

A Green Card Holder Since 2006 , He Will Apply For Citizenship In 2011 , But He Ask If He Can Bring His Wife From His Country Of Origine To Usa Before He Apply For Citizenship ? Both Have Italian Passport . Thank You

Is H1 married to Green Card Holder elligible to apply for Green Card? [ 1 Answers ]

Hi I am on my H1B visa in USA since Jan 2006.I got married to a Permanent resident in US while I am on my h1B. 1) I would like to know if I could start my green card processing through my husband? 2) How long can I stay on my H1B and when should I get my extension of H1B? Thanks Much!...

Green Card Holder living in the US and working in Mexico [ 2 Answers ]

n-a

Green card holder travelling [ 1 Answers ]

I am an Australian living in USA. I am also a green card holder. I want to travel to Vietnam by the end of this year. Should I use my Australian Passport or I have to use my green card with re-entry permit ? Thank you for your answer.

View more questions Search