Does my wife need to pay taxes after surrendering her green card?

Thanks for the explanation, but I'm still confused about the substantial presence test. My wife is here for like 9 months of the year - does that mean she passes that test and is still considered a resident for tax purposes even without the green card?

Yes, the substantial presence test is important in your situation. If your wife is physically present in the US for at least 31 days in the current year AND 183 days during a three-year period (counting all days in current year, 1/3 of days in prior year, and 1/6 of days in the year before that), she would generally be considered a resident alien for tax purposes. With 9 months (approximately 270 days) in the US during the year, she likely meets this test and would be considered a US tax resident despite surrendering her green card. In this case, you could still file jointly, but remember that means all her worldwide income (including the foreign rental income) would need to be reported on your US tax return.

Thanks for this info. So if I understand correctly, even though she gave up her green card, she might still be considered a tax resident because she's here more than 183 days? In that case, would we still file jointly? And would that mean her foreign rental income needs to be reported?

Yes, that's correct. Based on the substantial presence test (being in the U.S. for 183+ days), she would likely still be considered a U.S. tax resident despite surrendering her green card. This means you could file jointly as you did before. And yes, as a U.S. tax resident (by virtue of the substantial presence test), she would need to report her worldwide income, including the rental income from properties in her home country. You may be eligible for foreign tax credits if she's paying taxes on that rental income in her home country, which could help offset the U.S. tax liability on that income.

Does this tool actually help with international tax situations? I'm in a similar scenario but my spouse has income from three different countries. Would it work for something complicated like that?

I'm pretty skeptical about these tax tools... How does it handle the foreign tax credit situation? My wife has rental income from Japan and we always struggle with calculating the right credit amount on Form 1116.

Yes, it absolutely handles international situations including multiple countries. The system is designed specifically for complex scenarios that most regular tax software doesn't address well. It guided me through reporting income from both Canada and Spain for my husband. For foreign tax credits, it was incredibly helpful. It walks you through Form 1116 step-by-step and explains how to properly categorize different types of foreign income. For your Japanese rental income, it would help determine which income category to use and how to properly calculate the credit to avoid double taxation. It saved us from overpaying by about $3,700 last year.

How does that work exactly? Do real people review your docs or is it just some algorithm? My situation is similar but my wife has income from multiple countries not just rental income.

Sounds interesting but I'm skeptical about sharing sensitive docs online. Is it secure? And do they actually help with the filing process or just tell you what to do?

They use a combination of AI and tax professionals to review your documents. The system does the initial analysis, but there are actual tax experts who verify everything. It works great for complex situations like yours with multiple countries. Their security is bank-level encryption for all documents, which gave me peace of mind. They don't file for you - they provide detailed guidance on how to file correctly. In my case, they explained exactly which forms to use and how to report the foreign income correctly based on the tax treaty with my wife's country.

Wait, how does this actually work? I've tried calling the IRS multiple times and always hang up after being on hold for like 2 hours. Do they just call you when an agent is available?

This sounds like a scam. There's no way to "skip the line" with government agencies. They probably just take your money and you still wait forever. Has anyone actually had this work for them?

It works by using an automated system that calls the IRS and navigates through all the prompts and holds the place in line for you. When it's about to connect to an agent, you get a call so you can take over the conversation. You don't have to be on hold at all. It's definitely not a scam. I understand the skepticism - I felt the same way initially. But it's just a technical solution to a frustrating problem. They don't skip any lines or do anything improper - they just handle the waiting part for you so you don't have to sit by your phone for hours. The IRS has no idea you're using a service; to them it's just a normal call that's transferred to you at the right moment.

How long did you actually have to wait to talk to someone? I've been on hold with the IRS for literally hours before giving up.

This sounds like a scam honestly. The IRS phone system is deliberately understaffed. How could some random service possibly get you through faster than just calling yourself?

I got connected to an IRS rep in about 2 hours. Without Claimyr, I had tried for days and couldn't get through at all - either got a message that call volume was too high or was on hold until the office closed. It's definitely not a scam. They use technology to navigate the IRS phone tree and wait on hold so you don't have to. They basically hold your place in line and call you when they reach a human. I was skeptical too at first, but when I finally got to speak with an actual IRS agent about my wife's status after surrendering her green card, it was worth it. The agent confirmed that because she met the substantial presence test, we had options for how to file.

Oh wow I didn't even think about FBAR! She does have accounts in her home country that definitely exceed $10,000 during the year. Is this something I would need to file even if we end up filing taxes separately? And are there penalties if we haven't filed these in previous years?

Yes, FBAR would still be required even if you file taxes separately. The FBAR requirement is based on her status as a U.S. tax resident (which she likely is due to the substantial presence test), not on how you file your tax returns. Regarding penalties for not filing in previous years, they can be severe, but the IRS has streamlined procedures for taxpayers who weren't aware of the filing requirement. If her failure to file wasn't willful, you could use the Streamlined Filing Compliance Procedures to catch up on previous years without facing the heaviest penalties. I'd recommend addressing this promptly, as the penalties for willful non-compliance can be up to 50% of the account value per year.

Thank you for bringing that up! My wife is from Singapore and I didn't even think about potential tax treaties. Are these treaties pretty straightforward to understand or would I need professional help to figure out how to use them properly?

Tax treaties can be pretty complex, but the IRS has publication 901 "U.S. Tax Treaties" that summarizes the major provisions. For Singapore specifically, rental income is generally only taxable in the country where the property is located, but there are exceptions. I'd recommend at least reading through the treaty basics for Singapore, then determining if you need professional help. Given your situation with the green card surrender, it might be worth consulting with someone who specializes in international taxation for at least the first year under this new status.

This is misleading. You cannot legally maintain US permanent residency (green card) while claiming to be a tax non-resident of the US. The green card is literally proof of permanent residency, and permanent residents must file US taxes as residents. Your wife is potentially committing tax fraud if she has a green card but isn't filing US tax returns reporting worldwide income.

Yes, if your wife had the green card for 8+ years, she might need to file Form 8854. This is super important and often overlooked. If she meets the criteria for a "covered expatriate" there could be significant tax consequences.