Tax Returns on Reentry Permit

[sach_nyc]

Hi Guys,

I have a question regarding filing tax returns while outside US to maintain my permanent resident status. I am told I should not file 1040NR form.

Is that right?

and what about state-level forms?

I was living in NY but I do not maintain a permanent residence in NY as am out of US on reentry permit. Should I file New York Resident IT return or Non Resident?

Thanks for your help on this.

Sal

[rayb]

As a Green Card holder you need to file a Federal income tax return for any income earned, whether in U.S. or in another country. Do not file the NR tax return version and do not file a NY return if you did not earn any income in New York.

--Ray B

Hi Guys,

I have a question regarding filing tax returns while outside US to maintain my permanent resident status. I am told I should not file 1040NR form.

Is that right?

and what about state-level forms?

I was living in NY but I do not maintain a permanent residence in NY as am out of US on reentry permit. Should I file New York Resident IT return or Non Resident?

Thanks for your help on this.

Sal

[akramafraam]

tazes and immigration

Hi Sir,
I got my green card at 23 April 2012 by lottery, and since that time i used to visit USA for 2 weeks every 6 months. But at May 2015, i applied for the re-entry permit and it was issued at 16 June 2015 valid for 2 years (till 17 June 2017) and since May 2015 i did not visit USA till now. As my mother is sick and needs my help and support till now.
I am planning to return USA and stay for 4 years then apply for citizenship.
I filed Federal taxes at 2012, 2013 but I used form 2555EZ by selecting Bona Fide Residence Test.
And in 2014 I used form 1116 as i visited and worked in US for 2 months in 2014
And in 2015 I used again form 2555 EZ by selecting the physical presence test.
I read that “If the legal permanent resident declared himself or herself to be a bona fide resident of a foreign country on IRS Form 2555, that means the alien declared to the IRS that he or she went abroad for an indefinite or extended period. He or she intended to establish permanent quarters outside of the United States and he or she openly declared residence in a foreign country.”
So do you think that will make to me problems like being abandonment at applying for citizenship (cause of taxes or for being away for long time from USA)?
I think that I can modify my taxes till now as I filed years 2012, 2013 & 2014 at April 2015, so can you tell me what is the best thing I can do now?

[sach_nyc]

Thanks

As a Green Card holder you need to file a Federal income tax return for any income earned, whether in U.S. or in another country. Do not file the NR tax return version and do not file a NY return if you did not earn any income in New York.

--Ray B

I do have income in NY for these period. I was in India during that time. Question is what kind of income tax return for NY should I file? Resident or Non Resident? if I file resident return, I have to pay $11000 in extra taxes. I did not maintain any residence in NY during this time. No rental etc. I just have a friends mailing address.

My CPA can file non-resident tax return and actually get me $11000 refund. What do you think I should do?

Thanks
Sal

[rayb]

Sorry, but I can't give you a qualified answer, as I would be risking setting you up for loss of proof of residency, or avoidance of meeting tax return filing requirements.

-Ray B

I do have income in NY for these period. I was in India during that time. Question is what kind of income tax return for NY should I file? Resident or Non Resident? if I file resident return, I have to pay $11000 in extra taxes. I did not maintain any residence in NY during this time. No rental etc. I just have a friends mailing address.

My CPA can file non-resident tax return and actually get me $11000 refund. What do you think I should do?

Thanks
Sal

[sach_nyc]

don't worry

Sorry, but I can't give you a qualified answer, as I would be risking setting you up for loss of proof of residency, or avoidance of meeting tax return filing requirements.

-Ray B

I have asked same question on avvo.com and to my immigration attorney. so, don't worry. your answer, if you know you are right, will only help verifying and aligning facts. I don't just take decisions on the basis of one answer.

[rayb]

Sach,

Although a single answer (to file a resident tax return) might satisfy the most strict IRS and USCIS expectations, the $11,000 difference begs clarification. I'm guessing that the discrepancy is due to your overseas income not generating a U.S. tax liability. Normally, using the form 2555 foreign income reporting option takes advantage of the nontaxability of earned income if you had 330 or more days outside the U.S. during the taxable year. If that's not the case at all, and you are only talking about potential tax liability to New York state, then it's only a question of being prepared to provide proof that you were not maintaing a residence in New York state during the tax year.

--Ray B

I have asked same question on avvo.com and to my immigration attorney. so, don't worry. your answer, if you know you are right, will only help verifying and aligning facts. I don't just take decisions on the basis of one answer.

[sach_nyc]

Sach,

Although a single answer (to file a resident tax return) might satisfy the most strict IRS and USCIS expectations, the $11,000 difference begs clarification. I'm guessing that the discrepancy is due to your overseas income not generating a U.S. tax liability. Normally, using the form 2555 foreign income reporting option takes advantage of the nontaxability of earned income if you had 330 or more days outside the U.S. during the taxable year. If that's not the case at all, and you are only talking about potential tax liability to New York state, then it's only a question of being prepared to provide proof that you were not maintaing a residence in New York state during the tax year.

--Ray B

Thanks for update. I can provide such proof. Point is whether New York non-resident tax return will create a problem for gc or not. I do not qualify as resident of NY as per current definition on NY gov site.

[rayb]

For immigration purposes, State tax returns are not needed. If proof of domicile is later requested, what address will you have on your Federal tax return?

--Ray B

Thanks for update. I can provide such proof. Point is whether New York non-resident tax return will create a problem for gc or not. I do not qualify as resident of NY as per current definition on NY gov site.

[sach_nyc]

For immigration purposes, State tax returns are not needed. If proof of domicile is later requested, what address will you have on your Federal tax return?

--Ray B

Thanks for update. I'll use my mailbox address of NY on federal tax return. Hope that will be fine