When Visa or Green Card Holders Must Pay U.S. Taxes
If the U.S. government considers you a tax resident, you must file a U.S. tax return. Here's how to determine your status.
Even if you are not a U.S. citizen, you may be required to pay taxes in the United States. Whether or not you must file a U.S. tax return depends upon whether the U.S. government considers you a "tax resident." All permanent residents (green card holders) are tax residents, but only some holders of nonimmigrant visas are tax residents (see below). Still, filing a tax return can be a good thing if you've been working for an employer who's been withholding taxes from your paycheck -- you may get a refund!
Tax residents must report their entire worldwide income to the U.S. Internal Revenue Service (IRS). It doesn't matter if a portion or all of that income was earned from investments or business activities carried on outside the United States; a tax resident must report it all. But becoming a tax resident does not necessarily mean that the U.S. government will tax all of your worldwide income. International treaties control whether or not you must pay U.S. taxes on income earned elsewhere.
If You Have a Green Card
Once you get a green card, you automatically become a U.S. tax resident and you must declare your entire income to the U.S. government.
You may have heard that the number of days you spend in the United States each year has some effect on whether or not you are a tax resident. But this is true only for people who have nonimmigrant visas, discussed below. It is not true for green card holders. Even if you remain outside the U.S. for an entire year, you'll still need to report your entire worldwide income.
As a green card holder, you must file U.S. tax return Form 1040 each year by April 15th. Failure to follow U.S. tax laws will hurt your ability to qualify for U.S. citizenship. It may also be considered a crime -- and if you are found guilty, your green card can be revoked and you may be deported. To find out exactly how to follow U.S. tax laws, consult an accountant or a tax attorney, or visit the IRS website at www.irs.gov.
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