# Abandoned Green Card



## Ickebins

Help needed after abandoning green card
Background: German citizen, LPR resident since 2008.
After US-citizen husband passed away in May 2020 I moved back permanently to Germany in September 2020. Voluntarily abandoned LTR status (Form 407) in October 2020.
Until 2019 I have done our tax returns with H&R Block software. Married filing jointly.
Source of income Military Pay, VA Compensation (husband 100% service connected disabled) U.S. and German social security benefits, VA DIC. Last year I transferred money from my U.S. bank account to my German bank account which exceeded the $ 10,000 threshold for the first time.
Never filed FATCA or FBAR. German Bank did not know I was living in the U.S., still had a German address. I did not file German tax returns. Always combined U.S. and German SS benefits on 1040 as well as the very small interest from my German bank account.
My 83 year old brain is spinning from reading and not understanding all those paragraphs and instructions . I know I have to file the 2020 tax return……for the whole year or? Can I still file married filing jointly. What other forms do I have to submit.
I need your help. Thank you in advance.


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## Moulard

OK a lot of things to parse here.

First, assuming that you have not remarried, you can still use married filing jointly with your deceased spouse for the year of death if you choose to do so.

Technically you became a Non-Resident Alien on the day you submitted your I-407, but if you had been living in the US you probably meet the substantial presence test that would allow you to file as a resident for the entire year.

You do have the option to file separately (the executor of your husbands estate would file a final return if you chose to do so), but what with EIP payments and the lack of a standard deduction for NRAs and those filing dual status returns, it is probably beneficial to file jointly as a resident alien this one last last time. This also has the advantage that you can crib off of your previous returns as to what forms you need and how to complete them.


That aside, the only three key things that will differ are..

1) Schedule B - you will need to complete Part III because you have foreign accounts
2) FBAR - which you have already identified. Its filed electronically with FinCen its quite straight forward 1) figure out the maximum balance in any account during the year. 2) use the US treasury rate for 31 December 2020 to convert that into USD

I would download the PDF and then submit that rather than the online version
FBAR Link: Individuals Filing the Report of Foreign Bank and Financial Accounts (FBAR)
Treasury Link https://www.fiscal.treasury.gov/fil...-rates-of-exchange-as-of-december-31-2020.pdf

3) Form 8928 - Given you are now outside the US you would only have to file that if the total value of your foreign financial assets exceeded $400,000 on 31 Dec, or $600,000 at any point of the year.

On the deceased return, the links here may help






Signing the Return | Internal Revenue Service


My spouse passed away last year, and I want to file a joint return. How should I file, how should I sign, and are there any special notations required to indicate my spouse is deceased?




www.irs.gov






EDIT... whoops I knew I missed one - and the biggie at that...

4) Form 8854 - Expatriation Statement
Required for those long term permanent residents (of which you are one) who relinquish their permanent residency.
If your net wealth is over $2million USD then this will be highly problematic - and you may want to forget you ever read this.


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## 255

Ickebins -- Moulard pretty much covered it; but I have no experience with "3) Form 8928 - Given you are now outside the US you would only have to file that if the total value of your foreign financial assets exceeded $400,000 on 31 Dec, or $600,000 at any point of the year."

I do think you may be required to file IRS form 8938: Do I need to file Form 8938, “Statement of Specified Foreign Financial Assets”? | Internal Revenue Service (irs.gov) 

2020 Form 8938 (irs.gov)

Cheers, 255


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## Ickebins

Thank you Moulard and 255 for your reply, very much appreciated
So far I have filled out the 1040 return, married filing jointly. Filled out FBAR and submitted it online.

Now I am working on Form 8854 and not sure what expatriation date I should use
- date I signed form I-407, or
-date USCIS send me Form I-797C, Notice of Action, Notice Type: Confirmation Notice. ???

No, I don’t have to worry about net wealth above $ 2million USD and don’t need to submit IRS form 8938
Thanks again, kind regards
Ickebins


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## 255

Ickebins -- The Instructions to IRS form 8854 give four dates, of which the earliest applies. It appears, from the information you've provided, that the appropriate date for termination of long-term residency is the date you filed form I-407. Cheers, 255


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## Nononymous

This should be your last return, unless you have assets remaining in the US.

I'm guessing Berlin from the user name...


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## Moulard

Ickebins said:


> Now I am working on Form 8854 and not sure what expatriation date I should use
> - date I signed form I-407, or
> -date USCIS send me Form I-797C, Notice of Action, Notice Type: Confirmation Notice. ???


According to the instructions...

*



Date of termination of long-term residency.

Click to expand...

*


> If you were a U.S. long-term resident (LTR), you terminated your lawful permanent residency on the earliest of the following dates.
> 
> The date you voluntarily abandoned your lawful permanent resident status by filing Department of Homeland Security Form I-407 with a U.S. consular or immigration officer.


Given that you were not subject to removal, nor did you claim treaty benefits (which are the other three dates that 255 refer to), the date you signed the I-407.


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## Moulard

Nononymous said:


> This should be your last return, unless you have assets remaining in the US.


You don't need to have US assets to have a US filing requirement, but rather US sourced income.

I would hazard to guess that as the surviving spouse, U.S. social security benefits, VA DIC, VA Compensation etc would all be US sourced and thus taxation would be determined by treaty

If I read the treaty correctly (and I admit I have only skimmed the 2006 amending protocol which changed pension and government service clauses), US Social security benefits would only be taxable by Germany, any Military Pension would be taxable only by the US (unless some of the service was performed in Germany - in which case it could be taxed by Germany too) 

Unless SSA and VA gets its withholding correct, it is entirely possible the 1040-NR will be required to sort it out.


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## Bevdeforges

Moulard said:


> Unless SSA and VA gets its withholding correct, it is entirely possible the 1040-NR will be required to sort it out.


I would make sure that you notify the US consulate FBU (Federal Benefits Unit) if your husband was receiving US benefits (US Social Security or VA benefits). They are normally able to make all the proper notifications and get the withholding fixed - probably more quickly than you can by making the notifications your self.


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## Ickebins

Yes, I am a Berliner  
VA disability compensation and VA DIC are tax exempt and not considered taxable income.
We never declared this income on our tax returns. See
VA.gov | Veterans Affairs.
The only US source income I receive now is US Social Security survivor benefits and VA DIC,
direct deposit into my German bank account. I still have a US bank account.
Hopefully the 2020 tax return is the last one I have to file.


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## Ickebins

VA.gov | Veterans Affairs. This is the correct address


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## Ickebins

sorry system won't let me paste the whole address


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## Nononymous

Ickebins said:


> Yes, I am a Berliner


Na jut. Dit hab' ick jedacht.


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