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srivatsann · May 7, 2014, 08:21 AM

Hi,

I have been a long time resident of US (11 years) and have returned to my home country India in 2012. In 2014, I am planning to surrender my Green Card in June.

1) For the year 2014, should I file as resident or dual status resident?

2) If I file as dual status resident, would I completely revoke standard deduction or is there a pro-rated deduction that can be taken for the 6 months I had the green card?

3) Will I be able to claim exemptions for my wife and son who will also be surrendering their green cards?

4) Indian Salary/Capital Gains earned post June need NOT be reported to US. Am I correct?

5) Can I file W8-BEN to necessary authorities immediately after surrendering Green Card?

6) Do I need to file 1040-C?

Thanks

AtlantaTaxExpert · May 7, 2014, 08:55 AM

You can file a joint return one last time, but you must claim ALL world-wide income if you do. If you file dual-status, you claim all world-wide income up to the date you formally surrender the green card. You get to claim your wife and child on either the joint or dual-status return, but you get NO standard deduction at all if you file dual status.

The Form 1040-C is technically required, but you will not be stopped at the airport if you fail to submit it. Bring your last pay stub with you so you can show that sufficient taxes were withheld from your pay if asked.

The Form W-8BEN is not needed, but you WILL need to submit a Residency Termination Statement with the final tax return regardless of which one is filed.

If you want professional help filing, please email me at the email address in my profile.

srivatsann · May 7, 2014, 09:31 AM

I guess I will need professional help. I will contact you when time to file 2014 return nears.

My last US pay stub was in 2012. I don't think I have it. Is it OK to have the tax returns of 2012/2013 if I have to travel to the US?

If I don't submit W8-BEN, won't firms like E-trade withhold taxes when I sell US based stock of my company?

Thanks

AtlantaTaxExpert · May 7, 2014, 01:12 PM

The W-8BEN must be sent to those individual companies like eTrade, not the U.S. government.

I mis-read the post. Since you have already left, you need NOT worry about Form 1040-C at all.

I will be on the lookout for your email.

srivatsann · May 18, 2014, 01:04 AM

Hi ATE,

Thanks for the update on 1040-C.

So, once I abandon my permanent residency (Green Card) in June 2014, should I still file 1040 along with Residency Termination Statement for 2014? Or can I file 1040NR with Residency Termination Statement?

Regards

AtlantaTaxExpert · May 18, 2014, 09:25 AM

How you file your last return depends on how much you are earning in India. More than likely, filing Form 1040 is best because you can claim the Foreign Income Exclusion (Form 2555), but you must model it both ways to be sure.