Ep 30: What Is English For "Green Card"?
Listen & Subscribe
dark+apple dark+spotify dark+youtube
Yeah, it's not green anymore, but the name has persisted.
Do you know why the Permanent Residency Card is called the Green Card?
We answer this question and provide many more details about this "magic" document, which permits you to live and work permanently in the US if you are foreign-born.
We know quite a bit about it, having previously held this card.
We discuss the tax obligations and financial planning implications of being a green cardholder rather than a US citizen.
It's challenging to get, based on your home country, but once you get it, you must be careful if you want to abandon it to do it right.
Are you a green card holder? What questions do you have?
The speakers' views and opinions discussed in this episode should not be considered financial, tax, or legal advice. Consult your advisor for any legal, cross-border tax, and financial advice.
Be sure to join the conversation by following us on social media:-
-
Speaker 1 (00:06):
Welcome to the International Money Cafe Podcast, the show where we filter out the noise on cross-border taxes, finances, and life in the us. I'm your host, Jen Hams, certified financial planner, founder and owner of Elgon Financial Advisors.
Speaker 2 (00:21):
And I'm your host, man Nadi, enrolled agent, owner and founder of Amman Tax and Business Services. Join us on this journey as we explore the unique challenges faced by inbound outbound families and businesses on taxes, compliance, and financial planning. Let's get to the show
Speaker 1 (00:43):
And we are back with another shorty episode, which is where in 10 minutes or less we take a concept or an idea or a terminology used in the cross-border space and sort of just give it to you in common English.
What is a Green Card
So in today's episode, we are going to talk about the green card, right? So to rec reside permanently in the US, you need one or two things. You need to be a US citizen, meaning you are probably born in the country or you need to be a green cut holder. And so in today's episode, we are just going to talk a little bit about what this is, who can get it, and then we'll obviously touch on a few financial and tax implications of being a green cut holder. Now one thing I do want to say is, or the number of people that can get the green cut is limited based on these two types, family based or employment based. And each country gets a certain allocation, which is the reason why when we talk about work visas and people having to wait for so long to get the green card, it's because the number of people from your country that are eligible keeps going up. And so you could end up being in a very, very long queue because you're waiting for your number waiting to become available. So Manasa, do you want to define or tell us what a green card is or who a green card holder is?
What is a Green Card and Who is a Green Card Holder?
Speaker 2 (02:22):
Yeah, actually green card is something that's common reference to what is a lawful permanent resident or an LPR. And this is a person who is a non-citizen of the US but who has been granted authorization to live and work in the US on a permanent basis. And as proof of that status, a person is given a permanent resident card commonly known as a green card. And this is issued by the US Citizenship and Immigration Services, another acronym U-S-C-I-S, which a lot of people who come into the country are very familiar with. But what's one thing that got Jane and me curious is why the color green? So I believe the green card was first really green, maybe up until 1964 or so, and then it went through some iterations of different colors and then it went back to being green in color from 2010 onward. So that's the reason why it's called a green card. And obviously this is a very important stage or milestone in a foreign born national's life in the US and that's why it is important. So that's what it is. Jane, we'll be back after this important message.
Speaker 1 (03:57):
When we started the show, our goal was just to answer the questions that our community have. But Manas, have you looked at the stats lately?
Speaker 2 (04:06):
Oh, absolutely Jane. We have people listening to us from over 20 countries and that is super cool. So exciting. Thank you dear listener. And if you want to be notified of our episodes as soon as they drop, please subscribe on the I am cafe.com. Thank you so much again. And now back to our regular episode.
Speaker 1 (04:31):
I like that definition and I actually have a bunch of old green cards in my closet, in my safe, whatever. I'm going to take a look after this. I never thought about it to actually see, yeah, which ones are green. But anyway, regardless of the color, and I'm just going to keep calling it the green card, you have certain rights as a permanent resident holder, as the green card holder one obviously, and we are already talking about it, is the green card allows you to stay or reside permanently in the US provided of course you do not commit any actions or any crimes that would make you deportable under immigration law. So this is something you really want to be thinking about. If you're a US citizen and you commit certain crimes, you just be jailed and stay in the country. But as a green card holder, there's always the danger of being deported to your birth country.
You Have Permanent Residency in the US
Speaker 1 (05:34):
So you want to be careful about that. Obviously. It also means you do not abandon your residency by moving to another country with the intention of living there permanently. So the thing Manai and I are always talking about is it's permanent resident, right? Which means you are expected to live in the US permanently, but because we know life happens, if there's a reason why you need to be outside the US for an extended period of time, usually 12 months plus actually I think maybe six to 12 months or something like that, you really want to make sure you notify immigration and your immigration lawyer can work with you on this to get some forms that show the reason for your trip, how long you plan to be absent from the us, any other circumstances of your absence and events that may prolong your absence. So you want to make sure you have all this because if you come back to the US after being overseas for more than 12 months and you don't have that form, they actually have the right to refuse you entry and you really, really don't want to have to deal with that.
You can Work Legally in the US
Speaker 1 (06:51):
Of course, it also means you can work in the US at any legal job of your qualification and choosing, but some jobs are limited to US citizens mainly for security reasons. So this is another difference between the green card and when you think about non immigrant work visas, with those visas, you are limited to a very specific job and a very specific employer and you kind of have to stay in that lane. But with a green card, you are allowed to work pretty much any job that you qualify for except like I said, somewhere you do need some specific security appear. And then of course you are really protected by all laws of the us, your state of residents or local jurisdiction. Obviously this means you are going to obey the laws. The one thing I do like to point out is you really can't vote, and I think that's all I'm going to say when it comes to the voting part of it. So manasa, when I think about being a green card holder, what are the financial and tax mainly obligations of this?
Financial and Tax Obligations of a Green Card
Speaker 2 (08:01):
I know? Well, obviously when you have certain rights, the rights come with responsibilities always. So being a green card holder or a lawful permanent resident comes with responsibilities, which Jane already briefly touched upon this. You have to file your income tax returns and when you file your income tax returns, you have to report your US income and your worldwide income as well as all of your worldwide financial assets to the Internal Revenue Service and file your FBARs and FATCA information and all that good stuff, as well as do this with the state where you live in, if that's one of the states where you have to file taxes. And this is applicable to you even if you are a green card holder who is living abroad. It's the same responsibilities of filing income tax returns and other compliance stuff. And basically this is something that we kind of seek from time to time that if you are a green card holder and you're living abroad, there are certain treaty benefits like a tax treaty benefits which are available to you between the country of your residents and the United States.
Speaker 2 (09:34):
And you may be able to take advantage of some of these treaty benefits on your taxes. It does come with consequences. So please be careful when claiming benefits under a tax treaty 3D. And of course, financially you are treated as a US citizen for investing purposes in the US and also declaring your worldwide income. Again, regardless of where you live.
Does the Green Card Provide a Path to US Citizenship?
Now, where we talked about the rights and the responsibilities of being a green card holder, the next thing that people like to think about is does the green card or a permanent residency give you a path to the US citizenship? So yes, it does, provided you have taken necessary steps towards becoming a naturalized US citizen. And in order to take these steps, you have to meet certain eligibility criteria like continuous residents and physical presence of five years to be able to apply for naturalization.
Speaker 2 (10:51):
And another thing to remember on this path to US citizenship, and if you do become a US citizen, if the country of which you currently have a citizenship, does it allow you to be a dual citizen of both that country and the United States? And certain examples that quickly come to my mind are the UK and Australia, et cetera, where you could hold dual citizenships with both countries. So that was our shorty episode on green card or lawful permanent resident. So it is important for you to understand and of course fulfill all your legal obligations to maintain your status and take advantage of this path to full citizenship if that's what you desire. And as always, thank you so much for listening, and we encourage you to go to our website, the i am cafe.com and subscribe so that you get notification of all our future episodes. Thanks for listening. Bye.
Speaker 3 (11:57):
Thank you for listening to the International Money Cafe podcast. The content is for informational and educational purposes only and should not be used as a substitute for professional advice. Seek the advice of your qualified service provider with any questions you may have regarding your cross order finances and tax needs.