CR1 VISA and US TAX liability start date

[rah_haf123 0]

Hello,

 

I am planning to enter USA soon as a CR1 Visa holder. My question is, when will I be subject to report  world wide income for US taxation?

 

1. The day I enter the US Airport?

 

or

 

2. The day I receive the green, which I assume will take a moth or two to receive the card after entering the USA

 

Any help will be highly appreciated

 

Thanks

 

[geowrian 22,337]

Depends how you file your taxes. You can either be:

 

1) A dual-status resident.

In this case, you would report worldwide income starting from the moment you became a permanent resident. This occurs at POE with an immigrant visa. You would need to file MFS.

 

2) A US resident for the entire tax year (allowed as the spouse of a USC).

In this case you can file MFJ or MFS. You would need to report worldwide income for the entire tax year. You may be able to exclude taxes for foreign income earned prior to coming to the US via the 2555/2555EZ.

[Lil bear 4,201]

9 minutes ago, rah_haf123 said:

Hello,

 

I am planning to enter USA soon as a CR1 Visa holder. My question is, when will I be subject to report  world wide income for US taxation?

 

1. The day I enter the US Airport?

 

or

 

2. The day I receive the green, which I assume will take a moth or two to receive the card after entering the USA

 

Any help will be highly appreciated

 

Thanks

 

The day you enter the US. You are officially a  lawful permanent resident the moment you enter the US .. the GC is only evidence of that status. When you do get the actual card, it will have your entry date as the “ LPR date since” 

[geowrian 22,337]

* Moved from IR-1/CR-1 P&P to Tax & Finances. *

[rah_haf123 0]

Thank you all for clarifying

[Wuozopo 4,293]

12 hours ago, rah_haf123 said:

I am planning to enter USA soon as a CR1 Visa holder. My question is, when will I be subject to report  world wide income for US taxation?

If you do not earn US income during the tax year, you have no obligation to file, just as any American who earns below the filing threshold. Your spouse would file Married Filing Separately.
 

However, if you choose to file a joint return with your American spouse, then worldwide income of both filers is reported. Your foreign earned income may be eligible for exclusion, meaning the US taxes it would generate can be deducted from the tax calculation of the joint income reported. A joint return usually works out as the better tax scenario if you try it both ways. 

 

 

[US-UK 32]

On 5/3/2020 at 10:48 AM, Wuozopo said:

If you do not earn US income during the tax year, you have no obligation to file,

This is very concerning advice tax as we have zero information about the OP’s tax position based on the question asked.

 

If you have current or continuing foreign income (rents, severance, vesting equity, etc), you may still need to file, even absent US income. Or if you have US unearned income subject to certain rules. You may not owe anything, but you still file. 

 

And for some people, US filing obligations don’t wait to start on green card. You can already have an obligation to file based on time spent in the US in prior years.

 

Not everyone reading this site is in the same employment, travel and financial position, so we need to stick to the question asked or probe for more information when needed. And answers about tax advice should be caveated (eg, most people will not have a filing obligation) or be more precise (eg, no need for a return if you don’t have xyz).
 

And people new to the US tax system, please bite the bullet and hire a tax accountant familiar with your country’s tax treaty.