Do foreign nationals need to file US income taxes?

Non-investing personal finance issues including insurance, credit, real estate, taxes, employment and legal issues such as trusts and wills
Post Reply
Topic Author
Tenesmus83
Posts: 83
Joined: Thu Nov 22, 2018 2:32 pm

Do foreign nationals need to file US income taxes?

Post by Tenesmus83 »

Quick question. My in-laws are foreign nationals who have permanent residency status in the US. They come and visit us
and stay in this country for part of year. They do no make any income in the US, but they do make income outside of the US. Do
they need to file income taxes here?
codedude
Posts: 69
Joined: Thu Jan 26, 2017 9:15 pm

Re: Do foreign nationals need to file US income taxes?

Post by codedude »

Tenesmus83,

Yes, if their income exceeds a certain amount. They may also have to file FBAR foreign bank account report if their bank balances are above certain thresholds.
7eight9
Posts: 1435
Joined: Fri May 17, 2019 7:11 pm

Re: Do foreign nationals need to file US income taxes?

Post by 7eight9 »

This year KPMG posted a publication titled U.S. taxation of foreign citizens. It might be useful.
Link - https://tax.kpmg.us/content/dam/tax/en/ ... tizens.pdf
I guess it all could be much worse. | They could be warming up my hearse.
jpsc
Posts: 124
Joined: Sat Feb 10, 2018 11:05 pm

Re: Do foreign nationals need to file US income taxes?

Post by jpsc »

If they don't earn any income in US, why declare ?
7eight9
Posts: 1435
Joined: Fri May 17, 2019 7:11 pm

Re: Do foreign nationals need to file US income taxes?

Post by 7eight9 »

jpsc wrote: Fri Jul 12, 2019 8:51 pm If they don't earn any income in US, why declare ?
Because the United States taxes worldwide income.

If you are a resident alien, the rules for filing income, estate, and gift tax returns and paying estimated tax are generally the same whether you are in the United States or abroad. Your worldwide income is subject to U.S. income tax the same way as an U.S. citizen. You are a resident alien of the United States for tax purposes if you meet either the green card test or the substantial present test for the calendar year.
Link (bold mine) --- https://www.irs.gov/individuals/interna ... ent-aliens
I guess it all could be much worse. | They could be warming up my hearse.
User avatar
emlowe
Posts: 293
Joined: Fri Jun 01, 2018 2:57 pm

Re: Do foreign nationals need to file US income taxes?

Post by emlowe »

This is not a simple subject.

You should start from the position that ALL LPRs must declare and report their worldwide income and file a 1040.

There are cases where you may not have to - but I expect you would need professional advice on this aspect.
Ferri Core 4: 40% Bonds | 6% Reit | 18% Total i18n | 36% Total US
Topic Author
Tenesmus83
Posts: 83
Joined: Thu Nov 22, 2018 2:32 pm

Re: Do foreign nationals need to file US income taxes?

Post by Tenesmus83 »

Can you be more specific about the fbar foreign bank account
123
Posts: 6387
Joined: Fri Oct 12, 2012 3:55 pm

Re: Do foreign nationals need to file US income taxes?

Post by 123 »

Tenesmus83 wrote: Sat Jul 13, 2019 12:08 am Can you be more specific about the fbar foreign bank account
IRS has the requirements at https://www.irs.gov/newsroom/understand ... l-accounts

A green card holder is considered a U.S. person with respect to the requirements.
The closest helping hand is at the end of your own arm.
SQRT
Posts: 1414
Joined: Sat Feb 05, 2011 9:44 am

Re: Do foreign nationals need to file US income taxes?

Post by SQRT »

7eight9 wrote: Fri Jul 12, 2019 8:59 pm
jpsc wrote: Fri Jul 12, 2019 8:51 pm If they don't earn any income in US, why declare ?
Because the United States taxes worldwide income.

If you are a resident alien, the rules for filing income, estate, and gift tax returns and paying estimated tax are generally the same whether you are in the United States or abroad. Your worldwide income is subject to U.S. income tax the same way as an U.S. citizen. You are a resident alien of the United States for tax purposes if you meet either the green card test or the substantial present test for the calendar year.
Link (bold mine) --- https://www.irs.gov/individuals/interna ... ent-aliens
Well said. This is why Canadian snowbirds have to be careful how many days they are in the US each year and file a 8840 form to establish a closer connection with another country (in this case Canada) if appropriate. It’s also why wealthier Canadian snowbirds have to worry about estate taxes and usually put their US homes in a trust. Complex issue.
TedSwippet
Posts: 3159
Joined: Mon Jun 04, 2007 4:19 pm
Location: UK

Re: Do foreign nationals need to file US income taxes?

Post by TedSwippet »

Tenesmus83 wrote: Fri Jul 12, 2019 7:33 pm My in-laws are foreign nationals who have permanent residency status in the US. They come and visit us and stay in this country for part of year.
Additionally to the tax responses above, you might want to worry about immigration issues here. From the sound of things, your in-laws no longer live in the US. That may well mean that USCIS considers their permanent residence abandoned. Worse, although potentially no longer permanent residents for immigration purposes, they can remain 'US taxable persons' until and unless they officially surrender their green cards.

From the sound of things, your in-laws might be swimming in treacherous waters.
User avatar
LiveSimple
Posts: 1764
Joined: Thu Jan 03, 2013 7:55 am

Re: Do foreign nationals need to file US income taxes?

Post by LiveSimple »

Green card, residing in the US not working, no big assets \ passive income elsewhere in the world is no issues.
Same with lots of bank assets \ passive income elsewhere in the world do need to pay the taxes accordingly.

Pay the tax dues for the stay and enjoyment in this country. Simple.
Post Reply