Quote:
Originally Posted by morchu
I didn't want to get to the specifics. But since you mentioned it let me explain.
1. H1B guys once left US and live in India (or their home country), are NOT required to file US taxes (after the current tax year). But US citizens are required to file US taxes wherever they live permanently.
I infact wanted to stress the words "wherever he live" in my last post (maybe I was not clear).
2. Tax Credits don't give you enough benefits. Especially if you are moving to a country of lesser tax. To make it simple, lets say one rich guy moves to Bermuda for good, but keeps his US citizenship. He pays 0 tax on his income & capital gains in Bermuda (tax haven), but ends up paying most of US taxes (even after filing as a NON resident). Now on the other hand if he threw his US citizenship away before moving to Bermuda. He pays no taxes in US and in Bermuda for his income and capital gains.
So lets not generalize. For most of us it doesn't matter, since we plan to stay in US permanently. But if one genuinely plan to stay outside of US forever, you might want to look into things like this.
Again tax is just one of many items. I don't want to write an essay. if you have some specific questions on this topic PM me and I will point you to right direction.
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Perhaps you did not notice that I mentioned
most H1-B visa status holders in my post. Since number of H-1B visa holders that go back for good are small, therefore I mentioned most. I think that should explain that.
This is what I wrote in my post
This is true for all green card holders and most H-1B visa status holders as well. As long as one is resident US person for tax purposes, he/she has to report worldwide income.
Also, you, conveniently, left out that green card holder HAS to pay income tax on worldwide income no matter where he/she lives or work. This was main my point that for tax purposes there is no difference between green card holder and us citizen.
Let me repeat one more time, so that you can understand. There is no difference for tax liability between green card holder and US citizen. By not taking citizenship, green card holder is
not going to save on taxes as long as he/she is green card holder.
Without giving you details, there are many legal ways to reduce taxes. BTW, I do have finance (and comp. science) background.
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Not a legal advice.
US citizen of Indian origin
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