Tax implication for new Green card holder

[m_ash]

Hello everyone,
Could someone clarify the following under consular processing for a green card?
1. What is the difference between the immigrant visa & the green card?
I?m trying to understand at what point a green card applicant will pass the ?green card test? - https://www.irs.gov/individuals/inte...reen-card-test
Will they pass the test as soon as the immigrant visa is issued while they are still in India?
Or will they pass it only once they have travelled to the U.S on the immigrant visa?

2. How soon after one receives their immigrant visa in India, must they travel to the U.S and how long should they remain in the U.S on that 1st visit?

3. In this scenario, for what years does the green card applicant need to fie US tax returns?
2018 - They apply for the green card (submit I-130)
2019 - The immigrant visa is approved (they do not meet the substantial presence test)
2020 - The 1st time they set foot in the US using the immigrant visa.

Are they considered alien residents in 2019? or 2020? And do they need to file US tax returns for 2019?


Thanks in advance for any help!

[newacct]

Hello everyone,
Could someone clarify the following under consular processing for a green card?
1. What is the difference between the immigrant visa & the green card?
I?m trying to understand at what point a green card applicant will pass the ?green card test? - https://www.irs.gov/individuals/inte...reen-card-test
Will they pass the test as soon as the immigrant visa is issued while they are still in India?
Or will they pass it only once they have travelled to the U.S on the immigrant visa?

They become a permanent resident the moment they enter the US with their immigrant visa.

2. How soon after one receives their immigrant visa in India, must they travel to the U.S and how long should they remain in the U.S on that 1st visit?

They can travel to the US for the first time any time before the immigrant visa expires. Immigrant visas usually have a validity of 6 months, but it could be shorter if your passport is close to expiring, in which case the validity is limited to 60 days before your passport expires.

They do not need to remain in the US for any particular amount of time before they take a temporary trip abroad. They can take the next flight out the same day if they want. But they must maintain residence in the US.

3. In this scenario, for what years does the green card applicant need to fie US tax returns?
2018 - They apply for the green card (submit I-130)
2019 - The immigrant visa is approved (they do not meet the substantial presence test)
2020 - The 1st time they set foot in the US using the immigrant visa.

Are they considered alien residents in 2019? or 2020? And do they need to file US tax returns for 2019?

They would be considered resident in 2020 but only for the part of the year starting from the day they entered the US, and nonresident before that. So they would be dual-status for 2020. If they are married, it is possible for them to choose to become resident for all of 2020 and file jointly with their spouse.