Resident Alien

A resident alien is a foreign-born person who has all of the legal rights to dwell in the United States permanently. He is also known as a lawful permanent resident. A Permanent Resident Card, also known as a “green card,” will be awarded to these individuals.

If you are a citizen of another country and living in the United States for work then you may be considered a resident alien after satisfying certain requirements. In the United States, there are two ways to become a resident alien.

  1. You pass the Green Card examination.
  2. The substantial presence test was passed by you.

If you are legally living permanently in the United States as an immigrant, you are considered a resident alien for the green card test. If you hold an alien registration card, you have this status (known by you and me as a green card).

Types of Resident Aliens:

There are three sorts of resident aliens, according to the United States Citizenship and Immigration Services (USCIS):

Permanent resident: This is someone who has been granted by the government the legal and lawful authority to reside in the United States.

Conditional resident: This individual is issued a two-year green card, which is typically provided to persons who have sought residency based on marriage or as entrepreneurs. If a person does not request that the criteria be loosened 90 days before their green card expires, their permanent residence status will be cancelled.

Returning resident: Any lawful permanent resident who has been outside the United States and is returning to the nation falls into this category. This person must apply for re-admission if they have been outside the United States for more than 180 days.

There are distinctions among these three categories. For example, a resident immigrant can take advantage of foreign tax benefits, whereas a non-resident alien cannot. Taxes paid by both resident aliens and U.S. citizens are the same, whereas a non-resident alien pays tax only on domestic income earned in the United States, excluding capital gains.

Special considerations:

It is possible to be exempt from resident alien status, which means that a person does not have to prove that they meet the green card or substantial presence tests. There are some exceptions, such as when a person is temporarily in the United States on official business or when a student or instructor is temporarily in the United States.

These exempt aliens can seek an adjustment of status, which permits them to stay in the country and apply to become permanent residents with resident alien status, depending on their circumstances.

Resident Alien taxes in the United States:

All resident aliens in the United States are required to pay taxes. You must declare all income, whether earned in the United States or overseas, just like a U.S. citizen. This includes the following:

  • Interest

  • Dividends

  • Income from rental properties

  • Royalties

  • Other income you receive

If you’re an alien leaving the United States, you’ll need a certificate of conformity to show that you’ve paid your US taxes. If you don’t, you’ll have to file and pay at your departure point.

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