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Mail Bag #4 – Green Card/FBAR In Year Of Expatriation/IRA Withdrawals/Undeclared ISAs/UN Allowances

1. Green Card

I am unsure if I was meant to file a tax return for this tax year.

I was a legal permanent resident of the US, until the beginning of March of this year, at which point the abandonment of my status was approved.

I assumed that this meant I no longer needed to file, but my friends in the US have just advised me that I should confirm whether this is the case with an accountant.

You will be required to file tax return for this year, even if you were a legal permanent resident for one day.

For selection of filing period, you have two options. You may file a resident tax return for the entire year because the default end of U.S. tax residency date is December 31 of the calendar year. Alternatively, you may file a dual status alien return with the end of U.S. residency on March 31. You qualify for the earlier end of U.S. tax residency because you left the United States after that date and maintain a closer connection to your home country.

During the course of tax preparation we will be able to advise which is most advantageous to you.

If you were a permanent resident longer than 8 years, see situation 3 for further detail.

2. Streamlined Help

In the Streamline progam must I report all accounts under 10,000 Dollars?

For any FBAR filing, if your aggregate non-US accounts exceed $10k at any point in the year, you must report all applicable accounts. For example, if you have 4 non-US financial accounts (checking, savings, retirement, and cash value of life insurance) each with $3k highest balance, your aggregate highest balance was $12k and FBAR must be filed, reporting all of these accounts.

Whole Story at TFX.

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