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Income Tax Question -- Non-Resident

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Income Tax Question -- Non-Resident

Old 04-09-2012, 08:22 AM
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Default Income Tax Question -- Non-Resident

A friend sent me an email asking a question about income taxes, hopefully someone here will be able to help.

She was a resident alien until June 2010 when she moved by to her native country. She still have a valid green card so she just filed her 2011 income tax return. Her question is about 2012 income taxes. She does not want to live in the US anymore, intends to surrender her green card in Dec 2012. Will she need to file an income tax return for the year 2012 if she is not living in the US and no longer has a green card?
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Old 04-09-2012, 09:05 AM
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Why did she file a 2011 tax return? From your narrative, she did not reside in the US during 2011. Did she receive any 2011 income from US sources? Will she receive any income from US sources in 2012?
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Old 04-09-2012, 09:18 AM
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It is an excellent question, and I thought about it also. I think it is because she is a legal resident of the US, (currently visiting abroad) hence the need to pay income tax/file a 2011 tax return.

That's where the green card comes into it -- she will be giving up her green card this year, 2012, so does she need to pay income taxes for this year?
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Old 04-09-2012, 09:27 AM
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As long as she holds a legitimate green card, she is considered a permanent US resident*. She may not need to file a US tax return if she has no income tax liability in the USA. That will depend on her income, non-US taxes, tax treaties between USA and her home country, among other things that will keep a tax expert busy. If her 2011 and 2012 tax situations are the same and she had to file in 2011, I expect she'd need to also file in 2012. If she has 2012 income reported to the IRS by W-2, 1099, K-1, brokerage transactions, etc, she will want to file, unless the amount reported is inconsequential.

* http://www.irs.gov/businesses/small/...129391,00.html
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Old 04-09-2012, 09:40 AM
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Thank you very much!

The answer is in there, and there is good stuff in that link that she (nor I) even considered ... the need for her to tell the IRS she is no longer a resident.
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Old 04-10-2012, 11:11 AM
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Don't let her send the notification from the country where she is now living.....why give the IRS a heads up on her new address. Have her send you the notification that you can stick in a mailbox in the US.
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Old 04-10-2012, 11:26 AM
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Originally Posted by Tireless View Post
Don't let her send the notification from the country where she is now living.....why give the IRS a heads up on her new address. Have her send you the notification that you can stick in a mailbox in the US.

Yeah, thanks for offering to make me a part of all of this.

She already filed her 2010 return and 2011 return from her native country.
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Old 04-10-2012, 12:19 PM
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Originally Posted by Eyeball View Post
Yeah, thanks for offering to make me a part of all of this.

She already filed her 2010 return and 2011 return from her native country.
I was going to suggest you wear gloves while handling her letter to you. I didn't write that since I figured you already knew how to minimize your exposure.

It's moot anyway.
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