At what point do you officially become a US resident?

[Ewan 28]

I had a family-based Green Card approved by the London embassy in July. For various reasons - including finishing a work contract and selling my home - I am only moving to the US in early November. But I made a short trip to the US in September to talk to banks, property rental agencies etc and to see my son and daughter for the first time in two years.

 

I'm working with my UK accountant on my self-assessment tax return and have this question, which I'm struggling to find the answer to online. I keep seeing different or very vague advice on this. At what point do you become a permanent resident liable for US taxes? Is it:

 

1. The day the Green Card is issued?
2. The first day you set foot in the US with that visa (even if only for a short time)?

3. The day you move permanently to the US?

 

If the answer is 1 or 2, should I still declare my earnings from that date to the UK tax authorities (and pay my taxes) and apply for double taxation relief?

 

Thanks for any advice.

 

[aaron2020 11,651]

You have an immigrant visa which was approved by the US Embassy in London.  You have not gotten an approved green card.  

Once you enter the US on your immigrant visa and it is endorsed by CBP, you become a green card holder.  Once you become a US permanent resident, your worldwide earnings even if nothing is earned in the US is required to be reported to the IRS.  A good tax accountant will apply the foreign tax credit to prevent double taxation.  

Edited October 22, 2021 by aaron2020

[Ewan 28]

4 minutes ago, aaron2020 said:

You have an immigrant visa which was approved by the US Embassy in London.  You have not gotten an approved green card.  

Once you enter the US on your immigrant visa and it is endorsed by CBP, you become a green card holder.  Once you become a US permanent resident, your worldwide earnings even if nothing is earned in the US is required to be reported to the IRS.  A good tax accountant will apply the foreign tax credit to prevent double taxation.  

Thank you for the advice. So, if I'm understanding you correctly, my tax obligations to the US would begin from that moment when my immigrant visa was endorsed by CBP last month? Even though I left after a week and won't move there permanently until November? I just want to be absolutely clear on this. Thank you again.

[Boiler 46,188]

Correct

[SteveInBostonI130 3,489]

9 minutes ago, Ewan said:

Thank you for the advice. So, if I'm understanding you correctly, my tax obligations to the US would begin from that moment when my immigrant visa was endorsed by CBP last month? Even though I left after a week and won't move there permanently until November? I just want to be absolutely clear on this. Thank you again.

Yes.

 

Here is an IRS page that discusses foreign income and how to qualify for exclusions:

 

https://www.irs.gov/individuals/international-taxpayers/foreign-earned-income-exclusion

 

and here:

 

https://www.irs.gov/individuals/international-taxpayers/foreign-earned-income-exclusion-what-is-foreign-earned-income

 

A tax accountant should be able to help you sort through what is US taxable and what is not.

[Ewan 28]

1 hour ago, SteveInBostonI130 said:

Yes.

 

Here is an IRS page that discusses foreign income and how to qualify for exclusions:

 

https://www.irs.gov/individuals/international-taxpayers/foreign-earned-income-exclusion

 

and here:

 

https://www.irs.gov/individuals/international-taxpayers/foreign-earned-income-exclusion-what-is-foreign-earned-income

 

A tax accountant should be able to help you sort through what is US taxable and what is not.

Thank you so much to everyone for their advice. Reading VisaJourney regularly and seeing the kindness, patience and expertise of people on here has been such a help to me.

[JeanneAdil 6,672]

22 hours ago, SteveInBostonI130 said:

Yes.

 

Here is an IRS page that discusses foreign income and how to qualify for exclusions:

 

https://www.irs.gov/individuals/international-taxpayers/foreign-earned-income-exclusion

 

and here:

 

https://www.irs.gov/individuals/international-taxpayers/foreign-earned-income-exclusion-what-is-foreign-earned-income

 

A tax accountant should be able to help you sort through what is US taxable and what is not.

mentioned here is tax accountant which is very different than normal accountant (who may be only versed in working on personal or business accounting in the US )

a good tax accountant (as said by the above poster) or tax attorney is best for this service

[Ewan 28]

4 hours ago, JeanneAdil said:

mentioned here is tax accountant which is very different than normal accountant (who may be only versed in working on personal or business accounting in the US )

a good tax accountant (as said by the above poster) or tax attorney is best for this service

Good advice. Thank you.