Should we formally abandon permanent residence (green card)?

[canrun]

Hey folks,

 

My wife and I decided to return to China permanently several years ago. We had been going back to the States every 6-8 months, but last year were blessed with the birth of our son in China. We decided to remain here for the time being to raise him. It's now been over two years since we've been home, well over the one year window.

 

My question is this: I currently have the paperwork in-hand to abandon my wife's permanent residence (green card.) We will file again for PR status again some time down the road. Before I send the paperwork in, is there ANY reason I should NOT do this? I know it's a big step, so is there anything I am missing? Basically, is it a given that she will not be allowed into the country after being away for (two plus) years at this point?

 

We're ok with abandonment, but just want to make sure it's the right thing to do before I send in the paperwork. Thanks everyone! I ALWAYS recommend CFL to anyone that ever needs any China-US immigration visa questions answered. Great group!

 

Cheers,

Aaron

[Randy W]

It's not clear what happened to the good old, tried-and-true, file the I-407 along with your application for a new visa. But now they tell you to mail it to an address in the U.S. and it will be processed within 60 days.

 

I'm not seeing any upside or downside to abandoning her green card other than to simplify a return visit to the U.S. In fact, she could show up at a POE, refuse to abandon the green card, get a date in immigrations court, and possibly be awarded a new one (NOT recommended).

 

If you are unable to maintain your status because you reside permanently – or for long periods of time - outside the United States, you may wish to voluntarily abandon your LPR status and card. Voluntarily abandoning your LPR status may help avoid complications and delays at the U.S. port of entry when arriving as a non-immigrant visa holder.

 

 

 

There's also this to contend with (the I-407 is needed to "voluntarily record abandonment of their lawful permanent resident (LPR) status" before applying for another visa). The visa application is now online - the ustraveldocs.com web site tells you to submit the I-407 by mail.

USCIS Will No Longer Accept I-407 at International Field Offices

Quote

Beginning July 1, USCIS will no longer accept Form I-407, Record of Abandonment of Lawful Permanent Resident Status at international field offices by mail or in person.

Individuals who wish to voluntarily record abandonment of their lawful permanent resident (LPR) status must submit Form I-407 via mail to:

USCIS Eastern Forms Center
Attn: I-407 unit
124 Leroy Road
PO Box 567
Williston, VT 05495

We anticipate that processing times at the Eastern Forms Center, from receipt to completion, will be within 60 days, which does not include mailing time to or from outside of the United States.

In very rare circumstances, a U.S. embassy, U.S. consulate, or USCIS international field office may accept a Form I-407 in person if an individual needs immediate proof that they have abandoned LPR status.

 

 

I would think the Guangzhou USCIS office would still accept these, but you would need to ask.

[canrun]

Thank you, Randy! I think I'll file the paperwork tomorrow. We'll be here until at least 2023 anyhow. Thanks for the reply!

 

...and we're just right up the highway in Liuzhou. Let me know if you're ever in the area!

 

Best,

Aaron

[Randy W]

Yes, that is in the area, but the last time we were there was in 2013. For now, we aren't taking any overnight trips until my legs recover from 20 years of beta blockers (blood pressure medication) - they tend to fall asleep on their own schedule, often at very inopportune times

 

 

Trip to Liuzhou

[canrun]

Then my next trip to Yulin might to be to protest, uh, a certain festival!

[Randy W]

Then my next trip to Yulin might to be to protest, uh, a certain festival!

 

 

Good luck with that - they have cops stationed looking for people like you. This was the scene on June 21

 

 

 

They seemed lonely. Maybe they'll be happy to see you. Let us know if you decide to come

 

 

Dog Days in Yulin

[canrun]

The paperwork has been submitted, so I have a follow-up question: am I correct that my wife will keep her SSN and will continue to be a co-owner of our banks accounts, investments, etc? I believe that she will. If so, should we continue to file taxes jointly? I know (think?) her tax status does change somewhat. I don't know why we would not file jointly, but appreciate any insight or suggestions. I know this is likely not a typical situation here, as others are going the other way. GETTING the green card. Ha!

 

Thanks, all.

 

Cheers,

Aaron

[Randy W]

The lack of a green card changes NOTHING as long as you are in China, except that she can now apply for a visa.

 

When returning to the US, of course, she's under the usual restrictions for her visa type.

Edited October 18, 2019 by Randy W (see edit history)

[Randy W]

If she has spent 5 years in the U.S. while married to you, she is eligible for your SS benefits, including survivor benefits.

[canrun]

Thank you for the reply, Randy. I always appreciate your insight. We (I) have lived mainly in China for the past twenty years...never in the US for more than two. So there will be no SS benefits, unfortunately. We will continue to live in China for the time being. However, we have joint checking accounts, investments, etc. in the US in both of our names. As I understand it, by giving up the green card she no longer has US tax obligations. But I may be wrong (and anyone please let me know if I am!) I do know she keeps her SS card (tax ID). So, I'm wondering how I should file next year- I'm assuming joint, but I'm an English teacher, not an accountant, so I'm really not sure. Hope someone can steer me in the right direction. Thanks!

[Randy W]

Thank you for the reply, Randy. I always appreciate your insight. We (I) have lived mainly in China for the past twenty years...never in the US for more than two. So there will be no SS benefits, unfortunately. We will continue to live in China for the time being. However, we have joint checking accounts, investments, etc. in the US in both of our names. As I understand it, by giving up the green card she no longer has US tax obligations. But I may be wrong (and anyone please let me know if I am!) I do know she keeps her SS card (tax ID). So, I'm wondering how I should file next year- I'm assuming joint, but I'm an English teacher, not an accountant, so I'm really not sure. Hope someone can steer me in the right direction. Thanks!

 

 

The lack of a green card changes nothing - ALL U.S. income is taxable, even for an NRA (non-resident alien) - although you may find that her SEPARATE income doesn't rise to a taxable level.

 

You would most likely file the same way you did last year, although it sounds like you could stand to have that reviewed by a tax professional. HINT: Turbo Tax is a MAJOR stress and headache reducer. . . . and it may be FREE, depending on, well, everything. One approach is to file through TurboTax this year - and print out the returns to see exactly what they did.

 

The Foreign Earned Income Exclusion would apply to both of your earned incomes. But realize that the word "Exclusion" is a misnomer - you report and potentially pay taxes on ALL income (this is figured using the Foreign Earned Income Exclusion Worksheet, which is in the 1040 instructions).

 

Her China-based income may or may not be taxable, depending on whether you file jointly, and whether you follow community property or separate property rules, and also subject to the Foreign Earned Income "Exclusion".

[canrun]

Thanks. We do use Turbotax. Good product.

[Randy W]

Your wife is known as a "U.S. person" in IRS lingo - she is a non-resident alien, married to a US citizen, and has financial accounts in U.S. institutions.

 

It's up to you whether to file (married, filing jointly), or (married, filing separately) - (no separate return is required if she falls below the filing minimum)

 

But my guess is that it's going to be in your best interests to file married, filing jointly and reporting all income, whether China or US.

[canrun]

Thank you for the advice, Randy. Since we have joint accounts in the US, and we are planning on re-filing for her GC in the next 3-4 years, I think we will proceed as if nothing has changed and file jointly. Thanks again.

 

Cheers,

Aaron

[canrun]

This was a useful link I came across today. https://www.taxesforexpats.com/expat-tax-advice/foreign-spouse.html