Obtaining a visa, green card, or U.S. citizenship is a dream come true for many people. But without proper planning this dream can quickly turn in to a tax nightmare. It is also possible to inadvertently become a U.S. tax resident by virtue of the substantial presence test. Simply stated, under the substantial presence test you can become a tax resident of the U.S. by spending too much time in the U.S. If this happens you could be subject to tax in the U.S. on your worldwide income as well disclosure to the U.S. of certain foreign assets.
Immigration is confusing and you may enter the country unaware of how and when to start reporting and paying tax—not just on money earned here, but from your home country and anywhere else in the world where you may have income or assets. You will also have to start disclosing certain foreign financial assets to the U.S.; like foreign bank accounts, brokerage accounts, and ownership in foreign entities.
Esquire Group will consult with you before your planned immigration. We will help you understand what your tax obligations will be if you become a U.S. tax resident so you can avoid unpleasant surprises. We will also work with you to keep you in compliance once the immigration process is complete.