TAX - WITHDRAW LPR STATUS

[Lisbeth 3]

Hi All,

I have decided to withdraw the LPR status in the US.

I have been living in the UK, working here and paying my taxes here. I think I am eligible for the 2555 Form:

 

"The tax law permits certain U.S. taxpayers to exclude up to $80,000 per year of earnings from taxation if they live and work outside the U.S. for a year or more"

 

Could anyone here tell me if I submit the withdraw form with a letter explaining that I am in re-entry permit period (and I have not declare taxes for the US, only here in the UK) will I be exempt of any tax file process?

 

Thank in advance for your help.

 

Regards,

Lis 

[Boiler 45,940]

I 407 is the form, a good CPA for the tax issue.

[Lisbeth 3]

2 minutes ago, Boiler said:

I 407 is the form, a good CPA for the tax issue.

a good CPA?? even if I am working abroad and earning less than 70K usd?

[Boiler 45,940]

Well you are still a LPR and the UK and the US systems are different, you may not owe anything but I know enough to know it can be horribly complicated. For example tax efficient UK methods may not work as far as the US is concerned.

[Lisbeth 3]

4 minutes ago, Boiler said:

Well you are still a LPR and the UK and the US systems are different, you may not owe anything but I know enough to know it can be horribly complicated. For example tax efficient UK methods may not work as far as the US is concerned.

Many thanks. I have no idea how to deal with this but I will try to find out. Cheers. 

[jan22 3,056]

On 3/2/2020 at 11:20 AM, Lisbeth said:

Hi All,

I have decided to withdraw the LPR status in the US.

I have been living in the UK, working here and paying my taxes here. I think I am eligible for the 2555 Form:

 

"The tax law permits certain U.S. taxpayers to exclude up to $80,000 per year of earnings from taxation if they live and work outside the U.S. for a year or more"

 

Could anyone here tell me if I submit the withdraw form with a letter explaining that I am in re-entry permit period (and I have not declare taxes for the US, only here in the UK) will I be exempt of any tax file process?

 

Thank in advance for your help.

 

Regards,

Lis 

You will have to file a US return.  Doesn't mean you will owe taxes -- likely won't, but you have to file (if you earned more than $10,000).  Whether it is better to use the Foreign Earned Income Exclusion (FEIE) or the Foreign Tax Credit for the taxes you have paid in the UK will depend on your specific situation -- either way, filing a US return is required.

 

You can't be a non-resident alien for tax purposes whIle you have a green card.  Surrendering your green card now has no bearing on 2019 tax requirements -- the surrender is not retroactive to last year.  You're a legal resident for tax purposes until you turn in the green card (with the proper I-407 form).

Edited March 3, 2020 by jan22

[Lisbeth 3]

27 minutes ago, jan22 said:

You will have to file a US return.  Doesn't mean you will owe taxes -- likely won't, but you have to file (if you earned more than $10,000).  Whether it is better to use the Foreign Earned Income Exclusion (FEIE) or the Foreign Tax Credit for the taxes you have paid in the UK will depend on your specific situation -- either way, filing a US return is required.

 

You can't be a non-resident alien for tax purposes whIle you have a green card.  Surrendering your green card now has no bearing on 2019 tax requirements -- the surrender is not retroactive to last year.  You're a legal resident for tax purposes until you turn in the green card (with the proper I-407 form).

Many thanks for your help! 

Is there any help line for advise on taxes for resident alien living  abroad?