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Returning Citizen with Green Card

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SG Green
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Returning Citizen with Green Card

Postby SG Green » Wed, 10 Jan 2018 5:45 am

Hi,

I have a green card and is looking to take up a job back in Singapore. I understand that because of the green card, I have to pay US taxes on my Singapore income.

What I am confused about when I read the posts on this forum (and elsewhere) is that for the Bona Fide Resident Test (BFRT), since I am not a US citizen and that Singapore has no income tax treaty with the US, what does that mean for me?

Most of the time, the person posing the question is a US citizen so he/she satisfies the first of the two BFRT.

Does that mean that I cannot claim any exclusions and thus the entire income is taxed again?

thanks
Matt

bgd
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Re: Returning Citizen with Green Card

Postby bgd » Wed, 10 Jan 2018 10:04 am

Your question made be curious. It seems you do unless you surrender your green card. See link below.

https://www.irs.gov/individuals/interna ... ardHolders

It's only income over a certain level that is taxed, SMS will advise, I remember him having a fun night completing his last tax return. :)

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Re: Returning Citizen with Green Card

Postby Strong Eagle » Wed, 10 Jan 2018 10:51 am

SG Green wrote:Hi,

I have a green card and is looking to take up a job back in Singapore. I understand that because of the green card, I have to pay US taxes on my Singapore income.

What I am confused about when I read the posts on this forum (and elsewhere) is that for the Bona Fide Resident Test (BFRT), since I am not a US citizen and that Singapore has no income tax treaty with the US, what does that mean for me?

Most of the time, the person posing the question is a US citizen so he/she satisfies the first of the two BFRT.

Does that mean that I cannot claim any exclusions and thus the entire income is taxed again?

thanks
Matt


I don't think you have an issue. You are clearly a resident alien for tax purposes and while you cannot meet the bonafide residence test, you can certainly meet the physical presence test. While the requirement states that it is 330 days in any 12 month period, you're not penalized for temporary travel to other countries.

You can take this test for yourself, and I would recommend contacting a US tax accountant for professional advice. But, I don't see an issue.

https://www.irs.gov/help/ita/can-i-excl ... gn-country

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Re: Returning Citizen with Green Card

Postby GSM8 » Wed, 10 Jan 2018 11:14 am

bgd wrote:It's only income over a certain level that is taxed, SMS will advise, I remember him having a fun night completing his last tax return. :)

Not sugar coating the reality, I would word it as extra-territorial taxation of a "U.S. person's" entire worldwide income, with a limited exclusion on certain types of income and certain types of taxes paid to the country in which one is living

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Re: Returning Citizen with Green Card

Postby SG Green » Thu, 11 Jan 2018 12:24 am

Thank you for your thoughts.

I did the physical presence test and was happy to learn that I can claim the foreign earned income exclusion. There was a question about 330 days, it doesn't have to be inside Jan 1 - Dec 31 correct?

At the end of the test, it says

"You cannot take a foreign tax credit or deduction for taxes on income you can exclude unless you revoke the exclusion"

I take it that you can still take the credit plus the housing credit on the income after subtracting from the threshold. Is that understanding correct too?

I read that if you don't live in the US 6 months in a year (unless you apply for a special permit), your green card doesn't get canceled but you will not be permitted to enter the US anyway with it. Maybe surrendering the green card to save all these trouble makes more sense.

Thanks


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