What American immigrants need to know about taxation.

What American immigrants need to know about taxes.

If it is not paid after being notified by the IRS, the fine will rise to $50 thousand. According to the detailed rules, "all US tax residents and foreign financial institutions must report the account information of their US customers to the IRS. If uncooperative financial institutions have any income from the United States, including investment disposal income and interest and dividend income from American assets, they will be subject to punitive withholding of 30% withholding income tax. " In fact, American investment immigrants don't have to blindly listen to rumors, and American taxes are not terrible. Because the overseas assets that the United States requires to declare are not total assets, but specific financial assets. For example, direct investment income, indirect investment income, business income and property capital income. Real estate is not declared, and China green card holders do not have to worry about the problem that domestic real estate needs to pay taxes to the United States.

When declaring overseas assets, "global income needs to be declared" does not mean "global income needs to be taxed". Overseas assets before immigrating to the United States must be declared, but there is no need to pay taxes. If this part of the assets is later realized by appreciation, it is possible to pay taxes. Therefore, investors are advised to make a series of tax planning before emigration.

In order to regulate the implementation of the Detailed Rules and the taxation of immigrants from China to the United States, the United States and China signed the Agreement on the Avoidance of Double Taxation and the Prevention of Fiscal Evasion on Income. According to the agreement, China citizens who hold green cards have paid taxes in China at the China tax rate, and they can be exempted from the corresponding tax obligation by providing relevant tax payment certificates to the United States. However, due to the different tax systems in the United States and China, green card holders may face the situation that both the United States and China need to file tax returns or even pay income tax at the same time.

Welfare of American immigrants

The sound welfare system in the United States is also an important factor to attract more and more people to immigrate to the United States. American social security system is the representative of self-protection and public assistance. In terms of system design, American social security system attaches great importance to efficiency, and both rights and obligations reflect the efficiency goal of the system.

1. Relief benefits: When an American immigrant applicant, spouse or even child has no job after transferring to a green card, the government will find a job for you free of charge. With a six-month tax record, you can get government relief (the amount ranges from 0 to 00 per month) when you declare unemployment to local authorities in the United States.

2. The government helps to find jobs: The U.S. government has specialized agencies to find jobs for citizens free of charge. As long as green card holders register their skills, specialties and interests in this department, this department will find jobs for people for free. American immigration experts suggest that the department provide free basic skills (such as computer literacy and English). ) give it to people waiting for employment and help them find jobs.

3. Scholarship benefits: For ordinary China people who intend to apply for American university scholarships, they can only compete with outstanding people from all over the world for very limited scholarship places open to foreigners. But for people with green cards, the scope of scholarships is far from what a foreigner can apply for. Many scholarship institutions in the United States limit scholarships to "Americans" (people with permanent residency in the United States).

4. Student tuition: 18 Before going to college, all primary and secondary schools in the United States will implement compulsory education, that is, zero tuition (except private schools). In contrast, at present, China students need more than 20,000 dollars a year to study in the United States. American immigration experts suggest that foreign students pay more than 12000 dollars a year, while local state universities in the United States only pay more than 2000 dollars a year.

5. Medical benefits: most of them are realized by the medical insurance paid by the work unit, and you can enjoy the free medical insurance of the state after entering old age. The American government has established special health services to protect and promote the health of pregnant women and children. In addition, the United States has set up medical subsidies and home care programs for low-income people, which are jointly undertaken by the federal, state and county governments, and provide housework and non-medical care for the elderly, the blind or the disabled over 65, so that the beneficiaries can live at home safely.

6. Old-age welfare: Its system includes three aspects: social basic old-age insurance, enterprise supplementary old-age insurance and personal savings plan, which is often referred to as the "bench". American immigration experts suggest that retirees have basic free medical care provided by the state; In addition, the elderly can also choose private insurance purchase plans in a targeted manner.

Chapter III Scope of US Immigration Tax Declaration

The United States implements global tax returns, so it is necessary to apply for global income, as follows:

(1) Within the United States: it mainly includes salary and bonus income, self-operated income, bank interest income, dividends, stock trading income, housing rental income, EB-5 immigration project income, etc. ;

(2) Outside the United States: it mainly includes salary and bonus income, self-operated income, bank interest income, dividends, stock trading income, house rental income, franchise fee, etc. ;

(3) Specific overseas financial assets outside the United States: cash deposits, funds, stocks, PE, trusts, shares held by companies, cash value of life insurance and other assets that can be realized at any time.

It is worth noting that the global tax policy of the United States is aimed at personal income and specific overseas financial assets on a global scale, excluding personal total assets. In other words, personal salary, bank interest, real estate rent and financial income (such as securities, fund trading income, dividend income, real estate trading income, etc.). ) are all within the scope of taxation.

For American green card holders born in China, their property in China is not included in the tax return. However, if there is relevant rental income after landing, it must be declared.