Tax Filing Requirement after Green Card Abandonment

[skhoury 0]

I am a US citizen and married to a non-US citizen. She has a Green Card but we left the US 3 years ago.

We are getting a divorce in 2013 and she has no intention of going back to the US. She will be paid alimony and that is taxable.

Since she fails any kind of physical presence, I am certain she has "abandoned" the green card,

My questions are:

- Does she need to file taxes for 2012? She would have been out of the country for 2 years and has not been back to the US for 3 years

- Is she liable for taxes on alimony to be paid starting at the end of 2013?

- If yes to either question, at what point will she not have file and be not liable for any taxes? WOuld that be upon filing for I-407 at a US Embassy?

Thanks.

[lubnajavid 20]

Here is my understanding:

Any US Citizen or LPR - regardless of where they "live" should be filing taxes each year.

Now if your combined or individual income falls below that limit then you dont HAVE to file taxes (which i would be inclined to think, this doesnt apply to you)

So - summary: US Citizens and LPRs are required to file taxes...each year.

I cant comment on when she would be no longer required to file - i guess the tax year AFTER she is no longer considered a LPR

Edited July 31, 2013 by lubnajavid

[skhoury 0]

Thank you for your reply. Yes I understand that any LPR must file taxes but I am wondering whether she still is a LPR since has been out of the country for a continuous 3 years with no intention of going back. Also, if that does still have to file taxes anyway, what does she need to do to get out of that since she has abandoned the Green Card? Would filing an I-407 be the right way?

Thanks,

[Dave&Roza 748]

I am a US citizen and married to a non-US citizen. She has a Green Card but we left the US 3 years ago.

We are getting a divorce in 2013 and she has no intention of going back to the US. She will be paid alimony and that is taxable.

Since she fails any kind of physical presence, I am certain she has "abandoned" the green card,

My questions are:

- Does she need to file taxes for 2012? She would have been out of the country for 2 years and has not been back to the US for 3 years

- Is she liable for taxes on alimony to be paid starting at the end of 2013?

- If yes to either question, at what point will she not have file and be not liable for any taxes? WOuld that be upon filing for I-407 at a US Embassy?

Thanks.

She basically stopped being a LPR after being outside the US for more than 1 year. Her only ties to teh US were as your spouse. Once that relationship ends, she is not longer a LPR or has anything to do with the US. SHE is not liable for US taxes and SHE is not required to file any income tax return to the US starting in 2012 when she was outside the US for more than 1 year.

Dave

[Noel194 53]

Are you currently living in the USA or do you earn your income from the USA?

If so then her alimony payment are taxable by the US as income. There are certain traeties and exemptions but she cannot earn income in any form from the US (with a few exceptions) that is not subject to US income taxes even after she is not a LPR.

[skhoury 0]

My primary residence is overseas but I do work and earm income in the US.

She is no longer an LPR (givint it up soon with the I-407 I believe) and does not reside in the US nor does she earn any income there...except for the Alimony I suppose. Its strange that she would need to file in the US just for alimony. She does not have any ties to the except for that.

[Noel194 53]

The problem is that the alimony is tax deductible for you because it is taxable for her. It would be no different than if she lived here as a LPR won the lottery or earned a pension and then moved back to her home country and gave up her residency. The lottery winning or pension ares still taxable in the US because that is where they are payed from just like your alimony. If she were allowed to collect the alimony tax free you could divorce, stay together, pay her a huge alimony payment and deduct it from your income therby reducing your tax burden to zero and have your money tax free. See the problem it would be a huge loophpole for tax fraud.

Edited August 6, 2013 by Noel194