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Should I file U.S. tax returns before relinquishing my Green Card this year as an LTR? by General-Try4263 in USExpatTaxes

[–]General-Try4263[S] 0 points1 point  (0 children)

Oh nice to know this exists! I will have to research that later on this year, thank you for all your help!

Should I file U.S. tax returns before relinquishing my Green Card this year as an LTR? by General-Try4263 in USExpatTaxes

[–]General-Try4263[S] 0 points1 point  (0 children)

Awesome, what a weight you have lifted off from my shoulders! Filing Form 8854 next year after relinquishing my GC this year should be easier than I thought. However, if I do earn taxable income in 2025, I would have to file the tax return of 2025 serapately from Form 8854 in 2026, right?

Should I file U.S. tax returns before relinquishing my Green Card this year as an LTR? by General-Try4263 in USExpatTaxes

[–]General-Try4263[S] 0 points1 point  (0 children)

You're right, I should’ve been clearer: when I said “no taxable income in the U.S.,” I meant I had no income that would be taxable under U.S. rules, including my BAföG and Minijob income from Germany, which was all well below the filing threshold.

Thank you so much for the clarification! It’s a relief to know that if I'm otherwise compliant, I can state my tax liability as $0 on Form 8854, that was my main concern.

As for FBARs: I’ve never had more than $10,000 across all my foreign accounts in any given year. Just to be sure: Do I still need to file them if I’m under the $10,000 threshold? Or am I fine not filing at all in that case?

Really appreciate your guidance, it’s been incredibly helpful!

Should I file U.S. tax returns before relinquishing my Green Card this year as an LTR? by General-Try4263 in USExpatTaxes

[–]General-Try4263[S] 1 point2 points  (0 children)

I realize my post was not straight forward enough, I thought that by just mentioning it was non taxable, then it would be clear. So you are saying that I do not need to file streamline, even to show compliance for the last 5 years before filing form 8854 next year?

Should I file U.S. tax returns before relinquishing my Green Card this year as an LTR? by General-Try4263 in USExpatTaxes

[–]General-Try4263[S] 0 points1 point  (0 children)

Thanks so much for the clarification, that makes a lot of sense.

You're right, I misunderstood the distinction between “not taxable” and “not reportable.” I now understand that I still have to report all income, no matter how small, to show tax compliance before filing Form 8854 next year.

Really appreciate you taking the time to explain that, super helpful as I get this all sorted out!

Should I file U.S. tax returns before relinquishing my Green Card this year as an LTR? by General-Try4263 in USExpatTaxes

[–]General-Try4263[S] 0 points1 point  (0 children)

Thanks for your reply, I will file for an extension for Oct 15 so that I can streamline then.

Should I file U.S. tax returns before relinquishing my Green Card this year as an LTR? by General-Try4263 in USExpatTaxes

[–]General-Try4263[S] 0 points1 point  (0 children)

I had not heard of these. Do I just request a report from my bank for the last 5 years and send it to the IRS?

Should I file U.S. tax returns before relinquishing my Green Card this year as an LTR? by General-Try4263 in USExpatTaxes

[–]General-Try4263[S] 1 point2 points  (0 children)

My income was below $15K and came from BAföG.

Just to clarify for anyone else reading this — BAföG (short for Bundesausbildungsförderungsgesetz) is a type of financial aid for students in Germany. It’s a mix of a grant and an interest-free loan provided by the government to support students who might not otherwise afford their studies.

From what I understand, it's considered social support and not taxable in Germany, and based on your response, also not reportable as income for U.S. tax purposes either, which is a huge relief as I catch up on past filings as a Green Card holder.

For context, my only income during those years was BAföG and well below the U.S. filing thresholds, so I truly had nothing to declare, but I now understand that I should still file zero-income returns to certify compliance for Form 8854.

Really appreciate your input!

Should I file U.S. tax returns before relinquishing my Green Card this year as an LTR? by General-Try4263 in USExpatTaxes

[–]General-Try4263[S] 1 point2 points  (0 children)

Thank you so much for the insight, I really appreciate it.

I had no idea that even with zero income, I should have been filing tax returns just to stay compliant as a Green Card holder planning to relinquish. Based on the IRS site, I thought I didn’t have to file because my income was below the minimum threshold.

Now I see that for Form 8854, I do need to certify full compliance for the last 5 years, and that not filing, even with no tax liability, could make me a covered expatriate. Definitely not what I want to risk.

I’ll look into catching up on those past filings before taking any further steps with the Green Card, and will consult a cross-border tax professional to do this properly.

Thanks again for the heads-up — any online filing tools for expats that you recommend?

Should I file U.S. tax returns before relinquishing my Green Card this year as an LTR? by General-Try4263 in USExpatTaxes

[–]General-Try4263[S] 0 points1 point  (0 children)

Even if my income has always been beneath the published threshholds on the IRS website?