Giving Up Your Green Card? The IRS May Have a Surprise for You
As a Green Card (GC) holder, you have the same tax filing requirements as US citizens. If you choose to give up on the American dream and surrender your Green Card, depending on how long you held your Green Card, there may be additional reporting requirements. Importantly, until those requirements are settled, you will remain a US person for tax purposes, even if you proceed with the actual surrender process with immigration.
If you do meet these additional reporting requirements (more below), there may also be an “Exit Tax”.
How long did you have your GC?
If you give up your Green Card, it is important to know how long you have had the Green Card. There are two terms that must be understood:
– “Lawful Permanent Resident” – The day you received your GC, you became a lawful permanent resident
– “Long Term Resident” – If you held your green card for 8 or more years, then you are considered a long term resident, and are required to file form 8854.
Whole Story at TFX.