Green Card Tax Guide

Holding a Green Card while living outside the US creates significant tax obligations — worldwide income reporting, FBAR filing, potential exit tax on abandonment, and the risk of losing your Green Card for extended absences.

Your situation

Green Card status

Years you have held the Green Card

Months outside the US in the last 12 months

Do you have a re-entry permit?

Annual worldwide income

Net worth (for exit tax assessment)

Green Card tax analysis

Tax filing obligation

Form 1040

FBAR threshold

$10,000

Exit tax risk

Low

GC abandonment risk

Low

Your tax obligations as a GC holder abroad

📋 Annual Form 1040 — worldwide income

As a Green Card holder (lawful permanent resident), you are a US "resident alien" for tax purposes and must report all worldwide income on Form 1040 — just like a US citizen. This includes foreign salary, investment income, rental income, and pension income.

🏦 FBAR & Form 8938

If foreign financial accounts exceed $10,000 aggregate at any point in the year, you must file FinCEN 114 (FBAR). FATCA Form 8938 thresholds apply as for US citizens.

🌍 FEIE & Foreign Tax Credit

Green Card holders living abroad can use the Foreign Earned Income Exclusion (Form 2555) or Foreign Tax Credit (Form 1116), same as US citizens. The FEIE excludes up to $130,000 (2025) of foreign earned income.