KEY TAKEAWAY:

Immigrant obtaining a Green card involves one negative cost – United States taxation. United States green card holders are subject to United States income taxation on their worldwide income. This can expose United States green card holders to double taxation if any of this income is also subject to taxation in their native country or another foreign country.

For many United States citizens, immigration issues may only be the subject of political debate. However, it is very possible that at some point a United States citizen may need to address an immigration issue on a more personal level that directly affects the citizen.

It could be that the United States citizen wants an immigrant to come to the United States as a spouse or child or other family member. It could be that the United States citizen wants an immigrant to come to the United States for certain employment or other business purposes. As our contacts become more international and global, it becomes more likely that the United States citizen will need an immigrant to come to the United States. 

For immigrants seeking to come to the United States, a critical document is a green card. A green card evidences the right of an immigrant to permanently live and work in the United States.

There are certain qualifying family relationships or “employment/business” situations that can enable an immigrant to obtain a green card.

The following family members of a United States citizen can qualify for a green card based on the family relationship:

  • Spouse;
  • Unmarried child under 21 years of age;
  • Parent (if the United States citizen is 21 years of age or older);
  • Unmarried son and daughter (21 years of age or older);
  • Married son and daughter; and
  • Brother and sister (if the United States citizen is 21 years of age or older).

In addition, the following family members of an existing United States green card holder can qualify for a green card based on the family relationship:

  • Spouse;
  • Unmarried child under 21 years of age; and
  • Unmarried son and daughter (21 years of age or older).

The following “employment/business” situations also can enable an immigrant to qualify for a green card:

  • An immigrant can demonstrate extraordinary ability in the sciences, arts, education, business, or athletics through sustained national or international acclaim;
  • An immigrant can demonstrate international recognition for outstanding achievements in a particular academic field (including that such immigrant must have at least three years of experience in teaching or research in such academic area);
  • An immigrant has been employed for at least one year in the prior three years by a foreign entity that has a qualifying relationship with a United States business that has been doing business for at least one year and that wants to employ such immigrant in a managerial or executive capacity;
  • An immigrant is applying for a job that requires an advanced degree and the immigrant must possess such a degree or its foreign equivalent (a baccalaureate or foreign equivalent degree plus five years of post-baccalaureate, progressive work experience in the field);
  • An immigrant can show exceptional ability in the sciences, arts, or business;
  • An immigrant can demonstrate that such immigrant possesses at least two years of job experience, education, or training that meets the job requirements specified on the labor certification and will be performing work for which qualified workers are not available in the United States;
  • An immigrant can demonstrate that such immigrant possesses a United States baccalaureate or foreign equivalent degree, a baccalaureate degree is the normal requirement for entry into the occupation, and such immigrant will be performing work for which qualified workers are not available in the United States;
  • An immigrant can demonstrate the ability to perform unskilled labor (requiring less than two years of training or experience) that is not of a temporary or seasonal nature, and such immigrant will be performing work for which qualified workers are not available in the United States; and
  • An immigrant is investing $1,050,000 (or $800,000 in a targeted employment area or infrastructure project) in a new commercial enterprise that is used to create at least 10 full-time positions for qualifying employees.                                     

These qualifying family relationships or “employment/business” situations must be established on immigrant petitions (generally Form I-130 for family relationships and Form I-140 or Form I-526 for “employment/business” situations) filed with U.S. Citizenship and Immigration Services. Various required documents and other evidence and filing fees must be submitted with the applicable immigrant petition.

Approval of an immigrant petition for a qualifying family relationship or “employment/business” situation is only the first step to obtain a green card. If the immigrant is then outside the United States, the immigrant must go through consular processing before obtaining a green card. If the immigrant is then already inside the United States (such as if the immigrant is here on a non-immigrant visa), the immigrant must go through adjustment of status processing before obtaining a green card. There are various separate requirements that must be met by the immigrant under consular processing or adjustment of status processing, although both generally have the same final requirement – approval of the green card at an interview before an immigration officer.  

If you have a need for any immigrant to obtain a green card, please discuss this subject with your advisers.                

Note – Green Card Holders and United States Taxation

As described above, obtaining a green card can be a huge immigration benefit for a person trying to live and work in the United States. However, it should be noted that it also involves one negative cost – United States taxation. United States green card holders are subject to United States income taxation on their worldwide income. This can expose United States green card holders to double taxation if any of this income is also subject to taxation in their native country or another foreign country. This double taxation may be able to be avoided or at least minimized by United States foreign tax credits or treaties between the United States and the foreign taxing country. It is important that United States green card holders comply with United States tax return and payment requirements or else they can risk losing their green cards. If you have questions concerning issues related to the United States taxation of United States green card holders, please discuss this subject with your advisers.    

If you wish to discuss any of the above, find Pen Pal Gary’s contact info here.

Disclaimer: please note that nothing in this article is intended to be, or should be relied on as, legal advice of any kind. Neither LHBR Consulting, LLC nor Gary Stern provides legal services of any kind.

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