Foreign Income

[R&OC 371]

Dear all,

 

given that I have 20 years of working experience when immigrating, I have a question pertaining to foreign income.

 

I am currently working on a freelance basis in Europe in addition to be a tenured professor (soon to be on sabbatical). My freelancing pays well. I have to be on site for about three days and can work from home for the rest of the project (about a months, sometimes two). My projects pay me by the day as consultants or guest speaker. Again, this is in the EU.

 

I would love to find similar projects in the US and I believe that I will sooner or later transition well. But I am hesitant to work as an entry marketing manager for, lets say $20.00 per hour and have essentially very little time with our family at home, when I can earn two months of income with a three day trip to the EU (plus time zone adjustment). 

 

I do want to immigrate. And I do want to set up a similar business here but would USCIS/IRS hold it against me if I would report foreign income for the most part during the beginning? I am considering to create a ltd company in the US (with a EU subsidiary) and pay taxes in the US. Would that be enough to show that I am truly immigrating if I keep my presence in the US (minus business travel and occasional family trips) for the most part? I am not sure if I am posting this question right.

 

My entire career has been in international sales and marketing plus academia. I have lived abroad, travel extensively and would like to find ways to integrate my life within the context of a US green card. I feel like I need a lawyer just for that? I love doing my own little project and work independently.

[SusieQQQ 11,587]

I’m not sure if I’m misunderstanding you, but if you get a green card, you are obliged to report all worldwide income to the IRS. You may or may not need to pay tax on it, but you need to file. There’s no need to set up a company just to pay the IRS tax. The tax angle to your immigration intentions is basically that you file with the irs every year regardless of where you earn income.

[databit 328]

Do you have the $1 million (or $500k in an underserved low-income areas of US) to get an investor visa? Can you hire 10 Americans for that new company?

[usmsbow 802]

5 minutes ago, SusieQQQ said:

I’m not sure if I’m misunderstanding you, but if you get a green card, you are obliged to report all worldwide income to the IRS. You may or may not need to pay tax on it, but you need to file. There’s no need to set up a company just to pay the IRS tax. The tax angle to your immigration intentions is basically that you file with the irs every year regardless of where you earn income.

 

I think the poster is more concerned with immigration issues that might stem from a biz based in the EU and having income from outside the US, and trying to a) not appear like s/he is working illegally here b) not running afoul with either the IRS or USCIS and c) making it clear that s/he is truly a resident here even if their financial interests are primarily outside the country.

 

 

I don't think the OP needs to worry about c. Plenty of Americans and permanent residents derive their income from outside the US.  

 

[GreatDane 366]

As long as you report your income and pay taxes, when appropriate, you're golden.

 

If you continue to work abroad, you'll want to try to show other ties to the US later on. Show you're invested by sitting on a board, etc.

[R&OC 371]

4 hours ago, databit said:

Do you have the $1 million (or $500k in an underserved low-income areas of US) to get an investor visa? Can you hire 10 Americans for that new company?

Oh no... I wish... 

 

4 hours ago, usmsbow said:

 

I think the poster is more concerned with immigration issues that might stem from a biz based in the EU and having income from outside the US, and trying to a) not appear like s/he is working illegally here b) not running afoul with either the IRS or USCIS and c) making it clear that s/he is truly a resident here even if their financial interests are primarily outside the country.

 

 

I don't think the OP needs to worry about c. Plenty of Americans and permanent residents derive their income from outside the US.  

 

Yes, exactly. I think or hope, I can continue those projects without jeopardising my residency/GC status and I would like to avoid doing work that I don't particularly enjoy. I just don't want to have an issue coming up when we adjust status and risking a red flag for having a stream of foreign income. Taxation is a given - both in the EU and US.

 

Thank you guys for your feedback.

[SusieQQQ 11,587]

6 hours ago, databit said:

Do you have the $1 million (or $500k in an underserved low-income areas of US) to get an investor visa? Can you hire 10 Americans for that new company?

OP is in line for spouse visa, this isn’t necessary 

 

 

[SusieQQQ 11,587]

2 hours ago, R&OC said:

Oh no... I wish... 

 

Yes, exactly. I think or hope, I can continue those projects without jeopardising my residency/GC status and I would like to avoid doing work that I don't particularly enjoy. I just don't want to have an issue coming up when we adjust status and risking a red flag for having a stream of foreign income. Taxation is a given - both in the EU and US.

 

Thank you guys for your feedback.

Yup, source isn’t an issue

just remember to keep a log of your travel dates out as you’ll need to list them for your eventual naturalization application ....but as long as you are resident in US (home, spouse, bank accounts, license etc and yes of course pay tax here) source of income won’t matter in terms of defining residence.