Wait for citizenship or redo GC?

[Henry357 70]

37 minutes ago, SusieQQQ said:

Maybe I’m assuming too much but I’d guess, planning  on 3 children in 5 years, mom is not planning on working, or working much   so tax implications not too relevant, especially given the foreign income exemption 

Tax implications seem to have more impact than simply having to reapply for a green card.  

[SusieQQQ 11,586]

54 minutes ago, Henry357 said:

Tax implications seem to have more impact than simply having to reapply for a green card.  

I spent almost one full tax cycle abroad as a green card holder, so I am pretty well aware of what all the tax implications are because been there done that, and definitely  disagree with you on this one, especially as they seem to be uncertain about even meeting the financial requirements for a new application. If they are worried about meeting that, the chance of them earning much above the foreign income exclusion (currently $107600 and rises with inflation every year) seems low, so it’s just admin really. The admin of filing a simple IRS annual return - which don’t forget the USC husband has to do anyway so it’s actually no extra work - vs refiling an i130, the wait, the visa interview, worrying about finding a job first in US or joint sponsor  etc...  no comparison in my opinion. 

The only real instance in which tax implications would be a problem in this scenario imo would be if OP has significant assets abroad to sell with a big capital gains tax difference vs the US.

Edited May 29, 2020 by SusieQQQ

[Ontarkie 14,221]

~~Moved to General Immigration Discussion, from What Visa Do I Need~~

[Dashinka 24,493]

9 hours ago, SusieQQQ said:

Well... assuming you are still here and he can qualify for state residency on that basis, a community college to state public might be a better approach, and if instate likely to be even lower cost for the associates than wherever home country is. This is thread drift so PM if you want to discuss further, but I have a freshman kid and while she is at a 4-year, this is an increasingly popular option for cost saving, and there is often guaranteed transfer to publics for instate residents. 

I took that route in the late 80’s, it was not as popular then, but it saved me a bunch of money in the end.  

[US2UK 33]

11 hours ago, SusieQQQ said:

I spent almost one full tax cycle abroad as a green card holder, so I am pretty well aware of what all the tax implications are because been there done that, and definitely  disagree with you on this one, especially as they seem to be uncertain about even meeting the financial requirements for a new application. If they are worried about meeting that, the chance of them earning much above the foreign income exclusion (currently $107600 and rises with inflation every year) seems low, so it’s just admin really. The admin of filing a simple IRS annual return - which don’t forget the USC husband has to do anyway so it’s actually no extra work - vs refiling an i130, the wait, the visa interview, worrying about finding a job first in US or joint sponsor  etc...  no comparison in my opinion. 

The only real instance in which tax implications would be a problem in this scenario imo would be if OP has significant assets abroad to sell with a big capital gains tax difference vs the US.

This has been a great thread to read! I also want to go back home (UK) for a few years. I just applied for AOS and wanted to go in about 2/3 years, so I wouldn’t have citizenship yet. So I also wanted to know if it is better to wait it out until citizenship, or start over with GC again. 
 

I know taxes was one thing to consider, and I had a lot of questions about it. So thank you for answering with all this helpful info! 
 

One question - with the double tax treaties etc, do you pay US taxes or the foreign country taxes? Are state income taxes not applicable when you live abroad? 

[Henry357 70]

7 minutes ago, US2UK said:

This has been a great thread to read! I also want to go back home (UK) for a few years. I just applied for AOS and wanted to go in about 2/3 years, so I wouldn’t have citizenship yet. So I also wanted to know if it is better to wait it out until citizenship, or start over with GC again. 
 

I know taxes was one thing to consider, and I had a lot of questions about it. So thank you for answering with all this helpful info! 
 

One question - with the double tax treaties etc, do you pay US taxes or the foreign country taxes? Are state income taxes not applicable when you live abroad? 

You generally pay the income tax at the source first and you get a US tax credit for any tax paid.  If it’s just employment income in the UK you are normally clear because UK has higher income tax.   You don’t pay state tax
 

The issue is normally with capital gains and/or triggering the exit tax.  If you don’t have many assets you have less to worry about.   Also, the US has high short terms capital gains tax that are a major drawback of living here. 
 

 

[Henry357 70]

3 minutes ago, Henry357 said:

You generally pay the income tax at the source first and you get a US tax credit for any tax paid.  If it’s just employment income in the UK you are normally clear because UK has higher income tax.   You don’t pay state tax
 

The issue is normally with capital gains and/or triggering the exit tax.  If you don’t have many assets you have less to worry about.   Also, the US has high short terms capital gains tax that are a major drawback of living here. 
 

 

Also you need to check the tax treaty on the treatment of retirement savings.  A tax exempt account in one country is not exempt in the other unless it called out in the treaty. 

[SusieQQQ 11,586]

1 hour ago, US2UK said:

This has been a great thread to read! I also want to go back home (UK) for a few years. I just applied for AOS and wanted to go in about 2/3 years, so I wouldn’t have citizenship yet. So I also wanted to know if it is better to wait it out until citizenship, or start over with GC again. 
 

I know taxes was one thing to consider, and I had a lot of questions about it. So thank you for answering with all this helpful info! 
 

One question - with the double tax treaties etc, do you pay US taxes or the foreign country taxes? Are state income taxes not applicable when you live abroad? 

So ...there are particular issues with some countries and I believe the UK is one of them, where tax treatment of pensions differs - I don’t know all the details but that’s something you need to look into if that could be substantial for you.

 

If you are tax resident in the other country you pay tax there first. Different taxes can mean you’re liable for certain things though - example the country I was in didn’t tax dividend income, US does so I paid in. I would definitely suggest getting a tax preparer for anything other than simple salaried income.

You’re not state resident (or at least I wasn’t) when abroad;  I did get a letter from CA state tax board to confirm this as a reason for not having to have paid state taxes for that year during my LPR period (needed for my naturalization interview). 

 

 

[Elrona 101]

Oh wow! Thank you all for the replies and for the great discussion! Definitely has given me a lot to think about and helps with figuring out whats best to do.  

 

I didn't even consider re-entry permits! I need to look a bit more into it because relying on the answers here, that would seems just... perfect! What I need to check, I'm wondering whether I can be a legal permanent resident in two countries at the same time. I of course have my Estonian citizenship, but currently am a resident of US. But for my husband to get his residency in Estonia, I would need to reestablish my residency in Estonia and I've always been under impression that doing that, I would need to give up my US residency (so, basically abandon GC). 

[SusieQQQ 11,586]

1 hour ago, Elrona said:

Oh wow! Thank you all for the replies and for the great discussion! Definitely has given me a lot to think about and helps with figuring out whats best to do.  

 

I didn't even consider re-entry permits! I need to look a bit more into it because relying on the answers here, that would seems just... perfect! What I need to check, I'm wondering whether I can be a legal permanent resident in two countries at the same time. I of course have my Estonian citizenship, but currently am a resident of US. But for my husband to get his residency in Estonia, I would need to reestablish my residency in Estonia and I've always been under impression that doing that, I would need to give up my US residency (so, basically abandon GC). 

I don’t know the technical answer to that, but generally when people use re-entry permits to stay in their home countries they are resident there (will he using local health services, university, employment, whatever as residents). I mean...if you’re gone for two years it’s logical that you’re physically resident elsewhere anyway. I don’t know if there is any complication introduced by having to formally re-establish residency, but I do know of EU citizens using healthcare as residents etc. 

[Mestis 1]

What I would consider as well is that there is a lot of movement for the immigration system. Who knows what will be in place in 5 years from now....

[Henry357 70]

48 minutes ago, Mestis said:

What I would consider as well is that there is a lot of movement for the immigration system. Who knows what will be in place in 5 years from now....

what is this movement? 
 

There hasn’t been a major change to the immigration categories since since 86.  Nothing proposed by both parties would limit spousal immigration.  Limiting Sibling, parents and DV categories are the only changes proposed by the GOP.  

[Elrona 101]

Hi all!

 

Thank you again for all the replies you have posted! It has been a huge help! I filed for my removal of conditions back in November as soon as I was able to. What I have heard from a lot of people is that it has taken very long time to get the new GC in hand (some people get their citizenship first before they get their 10y GC in hand). If I'd go the re-entry permit route, would that be any cause for an issue that I am in a limbo? My 2y GC has expired, I have filed the proper paperwork but have not received the 10y one due to backlog. 

 

 

[SusieQQQ 11,586]

3 hours ago, Elrona said:

Hi all!

 

Thank you again for all the replies you have posted! It has been a huge help! I filed for my removal of conditions back in November as soon as I was able to. What I have heard from a lot of people is that it has taken very long time to get the new GC in hand (some people get their citizenship first before they get their 10y GC in hand). If I'd go the re-entry permit route, would that be any cause for an issue that I am in a limbo? My 2y GC has expired, I have filed the proper paperwork but have not received the 10y one due to backlog. 

 

 

A re-entry permit cannot be valid longer than your GC. If you don’t have a 10y GC yet it is (in my understanding) constrained by the expiry on your 2 year card, which is already past. 

[Elrona 101]

Just wanted to give an update on this topic in case its helpful for anyone else. I ended up filing my N-400 in late September 2021, had an interview on 25th of January 2022 and was offered to take the oath the same day! Surprisingly fast process and I feel very very lucky with it. Now I am able to move away as soon as I want and then come back in the future.