When does "global taxation" begin for new green card?

[freelancer 0]

Hi.

Does anyone have any experience on this?

Specifically, I want to know is, when I finally do get AOS and the 2-year probationary green card, does the IRS begin taxing me GLOBALLY on the date I get the green card, or will it ask for the entire 2009 taxation year? Because I am still earning foreign income (I own a company abroad and have some stocks) even though I am not working or running any business in the USA yet, while pending the green card.

Thanks!

[Nich-Nick 3,354]

You file for an entire tax year once you are living in the US. You can be a resident alien or non-resident alien. The first year you can be both. If you marry a USC, you can both "elect" to treat you as a resident alien for tax purposes only, even if you don't have a GC. That would allow you to file married joint if those benefits are helpful. For example, this past year spouses new to the US were able to claim the $600 Recovery Rebate Credit if filing joint. There are income exclusions for money earned out of the US. There's credit for taxes paid in a foreign country.

There's many complicated tax laws and a real tax professional might be needed (not the ones that pop up in Walmart during tax season.) For starters you should read Publication 519 US Tax Guides for Aliens from the IRS. Your income level, business income, and residence status will be so specific to you, that reading what the IRS has to say would be best. Actually I had to read it several times before it started making sense.

And here's some links to IRS discussion topics that might be of interest to you. http://www.irs.gov/businesses/article/0,,id=180259,00.html

[Gary and Alla 3,694]

Hi.

Does anyone have any experience on this?

Specifically, I want to know is, when I finally do get AOS and the 2-year probationary green card, does the IRS begin taxing me GLOBALLY on the date I get the green card, or will it ask for the entire 2009 taxation year? Because I am still earning foreign income (I own a company abroad and have some stocks) even though I am not working or running any business in the USA yet, while pending the green card.

Thanks!

Global taxation started decades ago. You have to claim ALL income, foreign or domestic. Th eIRS begins taxing you the minute you set foot in the USA, they don't need no stinking green card! You are already due to pay taxes to either USA or Canada. You must file a return with the IRS already.

USA and Canada have a unique tax agreement (whic the US has with a few other countries). You MUST claim and file taxes in the USA on money you made at your business in Canada, BUT you are allowed a credit for the taxes you PAID in Canada, so you will likely end up owing no MONEY, but you owe them the forms and calculations.

[payxibka 10,045]

Hi.

Does anyone have any experience on this?

Specifically, I want to know is, when I finally do get AOS and the 2-year probationary green card, does the IRS begin taxing me GLOBALLY on the date I get the green card, or will it ask for the entire 2009 taxation year? Because I am still earning foreign income (I own a company abroad and have some stocks) even though I am not working or running any business in the USA yet, while pending the green card.

Thanks!

Global taxation started decades ago. You have to claim ALL income, foreign or domestic. Th eIRS begins taxing you the minute you set foot in the USA, they don't need no stinking green card! You are already due to pay taxes to either USA or Canada. You must file a return with the IRS already.

USA and Canada have a unique tax agreement (whic the US has with a few other countries). You MUST claim and file taxes in the USA on money you made at your business in Canada, BUT you are allowed a credit for the taxes you PAID in Canada, so you will likely end up owing no MONEY, but you owe them the forms and calculations.

a non-resident alien for tax purposes only has there US based income taxed ... a resident alien and a USC have there worldwide income subject to tax (global taxation)

[Gary and Alla 3,694]

Hi.

Does anyone have any experience on this?

Specifically, I want to know is, when I finally do get AOS and the 2-year probationary green card, does the IRS begin taxing me GLOBALLY on the date I get the green card, or will it ask for the entire 2009 taxation year? Because I am still earning foreign income (I own a company abroad and have some stocks) even though I am not working or running any business in the USA yet, while pending the green card.

Thanks!

Global taxation started decades ago. You have to claim ALL income, foreign or domestic. Th eIRS begins taxing you the minute you set foot in the USA, they don't need no stinking green card! You are already due to pay taxes to either USA or Canada. You must file a return with the IRS already.

USA and Canada have a unique tax agreement (whic the US has with a few other countries). You MUST claim and file taxes in the USA on money you made at your business in Canada, BUT you are allowed a credit for the taxes you PAID in Canada, so you will likely end up owing no MONEY, but you owe them the forms and calculations.

a non-resident alien for tax purposes only has there US based income taxed ... a resident alien and a USC have there worldwide income subject to tax (global taxation)

Thanks for the clarification. I (US citizen) worked in Montreal for a year and had to file taxes in both countries and give copies of my returns to both countries. The tax paid in one is credited against tax owed in the other. But I wasn't aware of the "non-resident alien" stipulation. Thanks

[freelancer 0]

Thanks everyone for your inputs. Very interesting and very complicated ;-)

I already have sought the services of an accountant but needed to check about the taxation commencement period.