Permanent Residency and Tax Obligations

Immigration is a very complex part of United States law. There are many aspects of it which are commonly known, and there are aspects of it which remain mysterious to anyone not trained in it.

There are also areas which are common knowledge, but are commonly forgotten. One such area is the area of tax obligation. Permanent residency, which is obtained through receiving a green card, means that an individual is responsible for their tax obligations.

Naturally, that means that all holders of green cards are required to file income tax returns, reporting all of their income, just like any other citizen would.

The rules for non-resident aliens are quite different, but for permanent residents, income tax returns have to be filed on the standard Federal Form 1040. While this is not necessarily common, it should be noted that it is possible for some permanent residents to not have to pay any income tax, should all of their income be from sources outside of the country. Those individuals will still have to file tax forms, but will be responsible for paying the actual taxes in the country where the income originated.

Thanks to the non-discrimination article, there are a large number of tax treaties in effect with the United States government which allow foreign-based businesses some tax exclusions.

If you have any questions on filing for taxes as a permanent resident or a non-resident alien, do not hesitate to contact an immigration attorney today.

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