Cross-border tax & immigration
Getting a green card, changing visas, living long-term in both China and the United States, preparing to naturalize or giving up a green card: each step affects your status for U.S. tax purposes. In turn, your tax filing history shows up in immigration filings such as naturalization, the affidavit of support and EB-5 source of funds. Many of these questions are incomplete if you look only at immigration law or only at tax law; they need to be considered together.
Our managing attorney, David Wang, holds an LL.M. in Taxation (DePaul University), and the firm has a tax team. This section explains the principles where immigration status and U.S. federal tax intersect: who is a U.S. tax resident, what must be reported for foreign accounts and assets, the tax consequences of giving up a green card or citizenship, and the role tax records play in immigration filings. The goal is to help you see which situations need attention, not to calculate your tax or decide how you should file.
Our tax team
David Wang
Managing Attorney
Versed in U.S. tax and immigration law. Handles legal questions where immigration and tax meet, gives tax-related legal advice and oversees the team’s cross-border tax work.
Helen Hu
Tax Accountant · Chicago office
Trained in accounting in the United States and Canada, with a focus on tax compliance and planning. Prepares individual and business returns, cross-border filings, bookkeeping and financial statements for international clients. MS in Accountancy (Tax Compliance & Planning), Walsh College.
Linda Xiao
U.S. Certified Public Accountant (Washington) · Toronto
Focuses on business financial reporting, U.S. individual and business tax planning, and cross-border tax compliance, providing practical tax solutions for high-net-worth individuals, businesses and cross-border investors with an emphasis on compliance and risk management. Honours Bachelor of Commerce in Accounting, York University; Ph.D. in Polymer Materials and Engineering, Dalian University of Technology.
Section guides
Immigration status and U.S. tax residency
The green card test and the substantial presence test (IRC 7701(b)), exempt individuals such as F/J holders, dual status in the first and last year, taxation of worldwide income, the U.S.–China tax treaty “tie-breaker” provision, and the immigration consequences when a green card holder claims nonresident status under a treaty.
FBAR and foreign asset reporting
FBAR (FinCEN Form 114), FATCA Form 8938, Form 3520 for foreign gifts and inheritances, Form 5471 for foreign corporations, PFIC issues with Chinese funds and wealth management products, rent from and sale of overseas real estate, and lawful ways to come into compliance after failing to report.
Tax consequences of giving up a green card or citizenship
The definition of “long-term resident,” when residency ends, the three tests for a covered expatriate, the mark-to-market exit tax (IRC 877A), Form 8854, the difference between signing and not signing I-407, and planning principles before giving up status.
The role of tax records in immigration filings
Tax questions on the N-400 and good moral character, IRS transcripts, tax records for the I-864 affidavit of support, joint returns for the I-751, EB-5 source of funds, consistency between H-1B/L-1 wages and tax returns, ITIN and SSN, and tax debts and installment agreements.
Cross-border tax filing and accounting
U.S. individual returns, FBAR and foreign asset reporting, Canadian personal and corporate returns, bookkeeping and financial statements.
My status → what to watch for U.S. tax purposes
The table below sets out general principles for common statuses, to help you identify which questions need further checking. Whether you are a tax resident, and in which year residency begins or ends, depends on your specific days of presence, the date you obtained status, and whether a tax treaty applies.
| Status | General principle for tax status | Points to watch |
|---|---|---|
| Green card holder (including those living long-term in China) | Under the “green card test,” if you are a lawful permanent resident at any time during the year, you are a U.S. tax resident and report worldwide income. Living abroad for a long time does not by itself end tax residency; according to the IRS, status must be surrendered in writing to USCIS, or terminated administratively or judicially. | Wages, rent, interest and investment product income from China must all be reported; if your foreign accounts together exceed $10,000, you usually must file an FBAR. Claiming to be a resident of China under a tax treaty and filing as a nonresident creates immigration risks (see “Where immigration and tax intersect” below). |
| Conditional green card (two-year) | A conditional resident is also a lawful permanent resident under immigration law (INA 216), and the green card test likewise applies for tax purposes. | When removing conditions (I-751), a couple’s joint tax returns are often used as one piece of evidence that the marriage is genuine. Whether to file jointly must be decided on the actual facts; you cannot choose a filing status that does not reflect the facts just for the immigration file. |
| H-1B, L-1 and other work visas | The green card test does not apply; the “substantial presence test” does: if you are in the U.S. at least 31 days in the current year, and all days in the current year, one-third of the days in the prior year and one-sixth of the days in the year before that add up to 183 days, you are a tax resident. Most people working in the U.S. for the full year become tax residents. | The first year in the U.S. is often a dual-status year; once you are a tax resident, your accounts and income in China must also be reported. The wages your employer reports should match the salary in your visa petition. |
| F-1, J-1 students and scholars | Days in the U.S. are not counted toward the substantial presence test for a certain number of years (“exempt individuals”): for F/J students, generally the first 5 calendar years; for J-category teachers and researchers generally lose the exemption if they were exempt in any part of 2 of the prior 6 calendar years. During the exempt period you are usually a nonresident. | Even with no income, exempt individuals usually must file Form 8843; after the exempt period ends you may become a tax resident; status during OPT must be determined separately. |
| First year after getting a green card | You usually become a resident starting on the first day you are present in the U.S. as a permanent resident; the part of the year before that may be nonresident, creating a dual-status year. If you had already met the substantial presence test on a visa, the starting date may be earlier. | Assets acquired before immigrating, and Chinese companies or funds that existed before immigrating, become subject to reporting once you are a tax resident; pre-immigration planning can only be done before you become a resident. |
| Preparing to give up a green card or naturalize in another country | Anyone who held a green card in at least 8 of the last 15 tax years is a “long-term resident” (IRC 877(e)(2)), and the exit tax rules may apply on giving up status. Anyone with net worth of $2 million or more, average annual income tax liability over the past 5 years above the inflation-adjusted threshold, or who cannot certify tax compliance for the past 5 years, is a covered expatriate. | Form 8854 must be filed for the year you give up status; simply leaving the U.S. without signing I-407 does not necessarily end tax residency. Naturalizing in another country does not by itself end a U.S. green card. |
For the statutory sources of each threshold and the exceptions, see Tax residency and Tax consequences of giving up a green card. For inflation-adjusted figures, check the amounts the IRS publishes for the current year.
Common moments where immigration and tax intersect
Applying for naturalization (N-400)
The N-400 asks whether you owe taxes and whether, as a permanent resident, you have ever failed to file because you considered yourself a nonresident or filed as a nonresident. Under 8 CFR 316.5(c)(2), a green card holder who voluntarily claims nonresident status to obtain a tax benefit, or who does not file federal or state tax returns because he or she considers himself or herself a nonresident, raises a rebuttable presumption of having abandoned permanent resident status. Reporting worldwide income accurately and keeping IRS transcripts for recent years are part of preparing to naturalize. See N-400.
I-864 affidavit of support
The sponsor must submit the federal individual income tax return (or IRS transcript) for the most recent tax year, along with W-2s, 1099s and so on; the most recent three years may be submitted if helpful. A sponsor not legally required to file must attach an explanation. See I-864.
EB-5 source of funds
The investment funds must be traceable to a lawful source, and tax records for wages, business income, property sales and other income are often a link in the chain of proof. Remitting funds from China is not itself U.S. taxable income, but earnings after you become a U.S. tax resident must be reported. See EB-5 source of funds.
Long absences
A green card holder living long-term in China risks being found to have abandoned status for immigration purposes, while remaining a U.S. tax resident who must report worldwide income. Whether you continue to file as a resident is also one of the factors considered in deciding whether you have abandoned permanent resident status. See Long absences and the green card travel risk self-check.
Giving up a green card (I-407)
Signing I-407 is a written surrender of permanent resident status, and tax residency usually also ends at that point; long-term residents must also consider the exit tax and Form 8854. Claiming under a tax treaty to be a resident of the other country, without waiving treaty benefits, may also be treated as ending long-term resident status (IRC 7701(b)(6)).
Inheriting or receiving gifts of foreign property
A U.S. tax resident who receives gifts or bequests from foreign individuals totaling more than $100,000 in a year usually must report them on Form 3520 (reporting does not mean paying tax). For overseas estate arrangements, see Cross-border estate planning.
What we can do
- Assess the tax effect of a change in status: Before you get a green card, change visas, spend a long time abroad or give up a green card, we map out when tax residency begins and ends and which filings need attention.
- Coordinate immigration filings with tax records: Before you file an N-400, I-864, I-751 or EB-5 petition, we check that your tax records are consistent with the application and deal with any problems first.
- Work with your accountant on catching up: If you failed to report foreign accounts or income, we explain the lawful catch-up options the IRS currently offers (for example, the Streamlined Filing Compliance Procedures, the Delinquent International Information Return Submission Procedures, and voluntary disclosure) and divide the work with your accountant; whether an option applies must be assessed case by case.
- Planning before giving up a green card: We determine whether you are a long-term resident and a covered expatriate, and coordinate the immigration side (I-407) with the tax side (Form 8854).
Our attorneys and tax team handle questions where U.S. federal tax and immigration intersect; state tax, Chinese tax and other countries’ tax law must be handled by the appropriate professionals.
Frequently asked questions
I have a green card but have always lived in China and my income is in China. Do I still have to file U.S. taxes?
In principle, yes. A green card holder is a U.S. tax resident and reports worldwide income; where you live does not change this. The U.S.–China tax treaty and rules such as the foreign tax credit may reduce double taxation, but whether they apply and how to file must be handled by a tax professional based on your circumstances. There are also reporting obligations on the China side, for which you should consult a Chinese tax professional.
Can I use the U.S.–China tax treaty to claim I am a Chinese tax resident and file as a nonresident?
The treaty has a provision for deciding where a dual resident is resident, but for a green card holder doing so has significant immigration consequences: at naturalization you may be presumed to have abandoned permanent resident status (8 CFR 316.5(c)(2)), and a long-term resident may as a result be treated as having ended residency and become subject to the exit tax rules (IRC 7701(b)(6)). Before deciding, consult both an immigration attorney and a tax professional. See Tax residency.
Do I have to report my Chinese bank accounts, wealth management products and home?
They need to be considered separately. If your foreign financial accounts together exceed $10,000 at any time during the year, you usually must file an FBAR; some foreign financial assets may also have to be reported on Form 8938; Chinese funds and some wealth management products may involve the PFIC rules. Real estate held directly is generally outside these reporting regimes, but rent and gains on sale must be reported for tax. See FBAR and foreign asset reporting.
I failed to report foreign accounts in the past. What should I do before applying to naturalize?
Do not rush to file the N-400. The IRS still offers lawful catch-up options such as the Streamlined Filing Compliance Procedures, the Delinquent International Information Return Submission Procedures and voluntary disclosure (as of October 2026), each with different eligibility conditions, particularly whether the failure was non-willful. We recommend having an attorney and an accountant assess your situation together first, and preparing for naturalization after the catch-up filings are complete.
When is the FBAR due?
The FBAR is filed through FinCEN’s BSA E-Filing System and is not mailed with your individual income tax return. The statutory due date is April 15 of the following year, with an automatic extension to October 15 that does not need to be requested. Check what FinCEN publishes for the current year.
Starting in 2026, is there a tax on sending money to China?
As of October 2026, the One Big Beautiful Bill Act, enacted in July 2025, added a remittance excise tax (IRC 4475). Starting January 1, 2026, a 1% tax applies to international remittances paid with cash, money orders, cashier’s checks or similar physical instruments, collected by the remittance provider; remittances transferred from an account at a regulated financial institution, or paid with a U.S.-issued debit or credit card, are not covered. The IRS has issued proposed regulations, and the details are subject to the final rules. A remittance is generally not itself income, but for large transfers it is best to be able to explain the source of the funds.
Is David Wang an accountant? Can he prepare my tax return?
David Wang is an attorney who holds an LL.M. in Taxation; he is not a certified public accountant (CPA) or an enrolled agent (EA). We handle the legal questions where immigration and tax intersect and work with your accountant or the firm’s tax team; the actual filing is done by a tax professional.
Official sources
- IRS: U.S. tax residency – Green card test
- IRS: Substantial presence test
- FinCEN: Report Foreign Bank and Financial Accounts (FBAR)
- IRS: Options available for U.S. taxpayers with undisclosed foreign financial assets
- eCFR: 8 CFR 316.5
- USCIS: I-864, Affidavit of Support
Just got a green card, living long-term in both China and the U.S., or preparing to naturalize or give up your green card, and want to know first what to watch for tax purposes? Book an attorney assessment, or call (312) 519-1115 or reach us on WeChat at WangLawpllc. We will look at your immigration status and tax records together, explain the issues to watch, and tell you whom to turn to for next steps. We do not guarantee the outcome of any matter.
This page is general information, not legal or tax advice. Tax rules and IRS-published thresholds may change each year, and individual tax outcomes depend on the specific facts. Consult a tax professional before filing and rely on the official IRS and FinCEN websites. We do not advise on the tax law of China or other countries.