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USUKTax Accountants

Who we help

Green Card holders

A green card makes you a US tax resident on worldwide income, and keeps doing so after you leave until you formally give it up.

Tower Bridge and the City of London at dusk

The card is an immigration document with a tax obligation attached.

Lawful permanent residents are taxed as US residents on worldwide income from the day the card is issued, wherever they are living.

The part that catches people is the exit. Letting a green card lapse informally does not necessarily end the tax residence, and long-term holders can face the same expatriation rules as citizens.

What we handle

01

While you hold it

Worldwide income reported to the IRS, plus FBAR and FATCA reporting on non-US accounts.

02

If you move abroad

The obligation follows you. Treaty tie-breaker positions exist but have consequences worth understanding before relying on them.

03

Giving it up

Formal abandonment, and Form 8854 where the expatriation rules apply.

04

Long-term residents

Hold the card for long enough and surrendering it can trigger the exit tax, exactly as renouncing citizenship would.

Why us

The exit is the expensive part

Most of the cost we see attached to green cards is created on the way out, by people who assumed an expired card meant an ended obligation.

Plan the exit before you take it, and it is usually manageable.

Frequently asked

My green card expired. Am I still a US taxpayer?

Possibly. Tax residence continues until the status is formally abandoned or administratively revoked. An expired card is not by itself the end of it.

Can I use the treaty to be treated as UK resident?

In some circumstances, but claiming it can be treated as abandoning permanent residence for immigration purposes and may itself trigger expatriation rules. It is not a step to take casually.

Does the substantial presence test apply to me too?

It does not need to. Holding the card makes you a resident for tax from the day it is issued, regardless of how much time you spend in the US.

I moved abroad and kept the card. What now?

You remain a US taxpayer on worldwide income. Many people in this position stop filing on the assumption that leaving ended it, which is the most common way this becomes expensive.

What is the exit tax?

A deemed disposal of worldwide assets on expatriation, applying to those who meet certain net worth, tax liability or compliance tests. It catches long-term green card holders as well as citizens.

How do I formally give up the card?

By filing Form I-407 with USCIS, and Form 8854 where the expatriation rules apply. The tax and immigration steps are separate and both need doing.

Does the card affect my UK tax?

Not directly — UK liability follows UK residence. The interaction shows up in which country gets the first claim on particular income, and in credit relief.

A green card makes you a US tax resident on worldwide income, and keeps doing so after you leave until you formally give it up.

Talk it through

Tell us what you are trying to solve and we will put the right specialist on the call.

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