Individuals who enter the U.S. on temporary or permanent visas need to be aware of their income tax reporting requirements. This is especially true of those who hold green cards. If you have a green card and are not sure of your legal responsibilities for filing, consult with a Woburn immigration law firm.
While the requirements for reporting income earned by non-residents who are in the U.S. temporarily vary, with green card holders the matter is clear: you must report your income. In fact, it is necessary that you report all the income you earned worldwide during the given tax year. Failing to file an IRS form 1040 by April 15 is a crime, and is punishable with fines, revocation of your green card, and even potentially a term in federal prison. If you have not filed or are unsure of what to do, speak with an attorney at a Woburn immigration law firm.
Reporting Does Not Mean You Have to Pay
It is vital that you report all the income you made anywhere in the world for the tax year; whether you actually have to pay U.S. income tax on the entire amount is another matter. Not only are you allowed all the deductions U.S. taxpayers are, you can also claim foreign tax credits if you paid taxes on a portion of your income elsewhere.
The length of time you stayed in the U.S. during the tax year is irrelevant to whether you must file. As a green card holder you are considered a permanent resident. This means that even if you spent the entire year outside the country you still must report your income.
For Information and Legal Assistance
If you are unsure about your tax status or need assistance with another immigration matter, speak with an attorney at a Woburn immigration law firm. Call Ionson Law today at (781) 674-2562.