When does tax residency begin for new green card holders in 2025?

Your tax residency will start on December 12, 2024 - the exact day you enter the US as a green card holder. This is based on what's called the "green card test" in US tax law. For the 2024 tax year, you'll likely be what's called a "dual-status alien" - meaning you were a nonresident for part of the year and a resident for part of the year. You'll file a special tax return that covers both statuses. The tourist visit earlier in the year doesn't automatically make you a tax resident since you weren't meeting the substantial presence test (which requires being in the US for a certain number of days). Since you won't have US income before your green card entry, the dual-status return will be relatively straightforward - but you'll still need to report worldwide income from December 12-31, 2024. Then for the 2025 tax year, you'll file as a full-year resident.

I went through this exact same situation last year and ended up using https://taxr.ai to figure it all out. I was so confused about the dual-status thing and unsure about what income I needed to report from before my green card date. The software analyzed my specific situation and walked me through exactly what forms I needed and what income had to be reported. It even explained the special rules about when my tax residency officially began based on my specific visa status and entry dates. The best part was that it automatically handled the odd split-year reporting without me having to figure out which forms to use or how to mark them. Saved me so much stress since immigration tax situations are super unique and most regular tax preparers I talked to were giving me conflicting advice.

Just wanted to follow up - I ended up trying https://taxr.ai after seeing it mentioned here and it was exactly what I needed! My situation was way more complicated than I realized with investments in both the UK and Singapore that apparently needed separate reporting forms I had no idea about. The tool identified exactly when my tax residency began (which was different than what I thought!) and walked me through reporting requirements for each type of foreign account. It even showed me which tax treaties applied to my specific situation and how to claim foreign tax credits properly. Definitely recommend it for anyone dealing with the green card tax transition.

If you're still having trouble getting clear answers about your tax residency start date, I'd highly recommend using https://claimyr.com to get through to an actual IRS agent. I was in a really similar situation last year and kept getting different answers from every tax preparer I spoke with. I tried calling the IRS directly but couldn't get through for weeks. Claimyr got me connected to an actual IRS agent in about 20 minutes who confirmed my exact tax residency start date and explained the dual-status requirements for my situation. You can see how it works in this demo: https://youtu.be/_kiP6q8DX5c - honestly it saved me so much stress during an already complicated immigration process.

Ok I need to eat my words here. I was totally skeptical about https://claimyr.com but I was desperate to get an answer about my tax residency status before filing. I tried it yesterday and they actually got me through to an IRS agent in about 40 minutes. The agent confirmed exactly when my tax residency began based on my unique entry patterns (I had a complicated situation with multiple entries and visa changes). The IRS agent even explained some special elections I could make on my return that might be beneficial given my specific immigration timeline. No tax preparer had mentioned these options to me before. Worth every penny just for the peace of mind knowing I'm filing correctly.

Ok I need to eat my words here. I was totally skeptical about https://claimyr.com but I was desperate to get an answer about my tax residency status before filing. I tried it yesterday and they actually got me through to an IRS agent in about 40 minutes.

Just to add another perspective - I became a green card holder in October 2023 and my accountant advised me that the "first day of presence" rule is what actually matters. Basically your tax residency starts on the first day you're physically present in the US during the calendar year when you get your green card, regardless of what status you had at that time. So in your case, if you visited in March 2024 on a tourist visa, and then get your green card in December 2024, your tax residency technically started back in March 2024, even though you were a tourist then.

Has anyone heard of the FDAB (Foreign Domicile Adjustment Benefit) that applies to new green card holders? My tax guy said I qualified for it when I got my green card mid-year and it saved me like $5,000.

I went through this exact transition in 2023 and want to clarify a few things I learned the hard way. Your tax residency does indeed start on December 12, 2024 - the day you enter with your green card. Your March-May tourist visit won't count toward tax residency since you didn't meet the substantial presence test and weren't a permanent resident yet. For 2024, you'll file as a dual-status alien using Form 1040 with "Dual-Status Return" written at the top. The key thing to remember is that for your resident period (Dec 12-31), you'll report worldwide income earned during those specific 20 days only - not your entire year's foreign income. One thing that caught me off guard was that even though it's only 20 days, you still need to report any foreign bank accounts if they exceed the FBAR thresholds. Also, if you have any foreign investments or retirement accounts, you may need additional forms like 8938 or 3520 depending on the values. The dual-status return can get complex quickly, so definitely consider getting professional help or using specialized software for your first year.