If you live in the United States, it’s important to know that all permanent residents of that country must be subject to the same tax laws. Because of the relevance of these topics, it is important that you identify the most common mistakes that could affect your status as a lawful resident.
For foreigners, there is a document called a green card that authorizes their permanent residency in the United States. This also gives you rights and obligations that you must respect in order to maintain your status as a resident.
If you do not meet the established requirements, you could lose this status and have to return to your country of origin.
So what are the most common mistakes?
The first is to omit the income statement, so this accounts for people receiving cash income.
If the Internal Revenue Service (IRS) finds that your tax return hasn’t been returned, your first action could be penalties and interest. But if you discover that the tax evasion is premeditated, it could be grounds for criminal prosecution and even imprisonment.
Another mistake is to file a resident’s declaration when you don’t yet have a green card. You should know that there are two types of forms to submit your tax return; Residents use 1040 and non-residents use 1040NR.
A status check is carried out with proof of substantial attendance. This consists of calculating the time spent in the United States and determining how to pay taxes.
bank accounts
Hiding foreign bank account information is a mistake you shouldn’t make. Since receiving the green card, the migrant must inform the IRS if they have active bank accounts abroad. This must be done via Form 114 or 8938.
When a job is found, the employer usually provides the employee with a W4 form. This determines the amount of tax to be withheld from the paycheck throughout the year. If there were any errors in completing this form, a tax liability would be declared.
As the head of the household, you should also not submit a tax return without meeting the requirements or claiming your child tax credit. These are the most common mistakes that can harm your legal immigration status.