I have an (expired) Green Card
I Have an (Expired) Green Card – What Are My U.S. Tax Obligations?
Many Green Card holders assume that once their Green Card expires, they are no longer considered U.S. tax residents. However, this is not necessarily the case. The U.S. tax system has specific rules regarding taxation for Green Card holders—even if they live abroad or no longer use their Green Card. This may put a huge burden on people living abroad. They are faced with a double tax liability with additional costs, considerations, and administrative burdens.
You have to file taxes. The US has a different tax system than most countries in the world. The tax system, CBT (Citizen Based Taxation), is a tax system based on citizenship, not on residentship. Whether filing will result in you paying actual taxes in the US depends on personal circumstances, and double taxation treaties made with the country in which you live and or work. Not filing taxes in the US is a criminal offense.
Am I Still Considered a U.S. Tax Resident if My Green Card Has Expired?
Yes. Under U.S. tax law, holding a Green Card—expired or not—means you are still a U.S. tax resident. This means you are required to file annual U.S. tax returns and report your worldwide income, even if you no longer live in the U.S.
• The IRS considers Green Card holders as U.S. tax residents until their immigration status is officially terminated.
• Simply letting your Green Card expire does not relieve you of your tax obligations.
• To officially end your U.S. tax residency, you must file Form I-407 (Record of Abandonment of Lawful Permanent Resident Status) and submit final tax filings, which may include an Exit Tax.
If your green card expires, you are still required to pay taxes in the United States. This obligation stops when you turn in your Green Card and file your exit tax return with the IRS.
What Are My Tax Obligations as a Green Card Holder Living Abroad?
As a Green Card holder—whether residing in the U.S. or abroad—you must:
1. File an annual U.S. tax return (Form 1040) if your income exceeds the filing threshold.
2. Report all worldwide income (including salaries, investments, rental income, pensions, and foreign accounts).
3. Disclose foreign financial accounts if the total balance exceeds $10,000 at any point in the year (via FBAR, – Foreign Bank Account Report).
4. Report certain foreign assets if their value exceeds IRS thresholds (via Form 8938 – FATCA Reporting).
Does an Expired Green Card Exempt Me from U.S. Tax Obligations?
No. Your U.S. tax obligations continue until you officially abandon your Green Card.
Even if your Green Card is expired, lost, or unused, the IRS still considers you a lawful permanent resident until you formally renounce your status.
If you fail to file a return, FBAR, or pay taxes owed, you may be subject to penalties and interest. Additionally, the IRS may flag your account and initiate collection proceedings.
It is therefore imperative that you remain compliant with your US tax obligations, even if your Green Card has expired.
If you do not officially terminate your tax residency, the IRS may still require you to file and pay U.S. taxes.
What Are the Consequences of Not Filing U.S. Tax Returns as a Green Card Holder?
If you fail to file tax returns or report foreign accounts as a U.S. tax resident, you may face:
• Failure to file penalties – up to 25% of unpaid taxes.
• FBAR penalties – up to $10,000 per missing report or 50% of the account balance for willful violations.
• Possible tax audits – The IRS can investigate unfiled tax returns for up to 6 years.
• Difficulties with immigration status – Unresolved U.S. tax issues can complicate travel, visa renewals, and future U.S. immigration applications.
How Can I Officially End My U.S. Tax Residency as a Green Card Holder?
To legally end your tax obligations in the U.S., you must:
1. File Form I-407 – Submit this form to USCIS to formally relinquish your Green Card.
2. File a final U.S. tax return (Form 1040 or 1040NR) – You must report income until your official residency termination date.
3. Check if the Exit Tax applies – High-net-worth individuals may need to pay an Exit Tax (if net worth exceeds $2 million or tax compliance is missing).
4. Keep documentation – Maintain proof of Green Card abandonment and IRS tax compliance.
Need more information on your (expired) Green Card and your US tax obligation?
We, the founders of Americans Overseas, were born in the Netherlands and obtained our American nationality through our (American) mother. When we heard about this for the first time around 2013, we were in total disbelief (it can’t be true!), anger (how can they do this?), fear (am I going to get fined or pick up other problems?), and panic (what should I do?).
It is (unfortunately) true that there is an additional American tax levy. But there’s no information from the local government, and when approached, the consulate referred us to the IRS, and the IRS was impenetrable.
That’s why we started this initiative to help people from all over the world by providing proper information to avoid unnecessary panic and offering help free of obligation and free of charge. If needed, we have a network of affordable professionals (accountants) who can help you with your tax obligations. If you have more questions about your Green Card and the US tax obligation you can contact us at Americans Overseas.
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Written by Linda Mabelis
General Manager & Partner
Linda Mabelis is the General Manager and Owner at Americans Overseas, dedicated to helping individuals find the right tax attorney for their unique situations. With extensive work experience and a deep understanding of the complexities facing Americans Overseas, Linda is committed to providing personalized and effective solutions.
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