How immigrants should pay taxes in the US, and what to do with foreign assets

If you received a green card abroad , then the start date of residence is the first day of physical presence in the United States after receiving the green card.

Generally, when you initially receive a green card, your tax residency start date is the first day of the calendar year in which you moved to the United States as a lawful permanent resident.

Taxation of a US tax resident

If you are a U.S. tax resident or a U.S. citizen, the rules for filing income, estate and gift tax returns and paying estimated taxes are generally the same whether you are in the United States or abroad. Your worldwide income is subject to US income tax, regardless of where you live.

Do not forget about taxation of gifts and inheritances. According to US law, gift tax is imposed not on the recipient of gifts, but on the giver. The same applies to inheritance tax (estate tax) - it is levied on the testator, not the heir.

Detailed tax information

If you earn income in Guam, the Commonwealth of the Northern Mariana Islands (CNMI), American Samoa, the US Virgin Islands, or Puerto Rico, you will likely have to file a tax return with the tax department of one of those territories. It is possible that an individual will have to file two annual tax returns, one with the territory's tax department and one with the IRS. .

Foreign assets

Federal law requires U.S. tax residents and United States citizens to report all worldwide income, including income from foreign trusts and foreign bank and securities accounts.

Which taxpayers need to complete and attach  to their tax return? . Part III Schedule B requests information about the existence of foreign accounts, such as bank accounts and securities accounts, and generally requires a person to report the country in which each of these accounts is located.

In addition, some taxpayers may have to complete and attach to their tax return. Generally, U.S. tax residents, U.S. persons, and certain non-residents are required to report certain foreign financial assets on this form if the aggregate value of those assets exceeds certain thresholds.