New US Residents Taxation

Becoming a US resident -- whether through a green card, an employment visa, or a change in immigration status -- triggers a host of new tax obligations that can be overwhelming for those unfamiliar with the American tax system. The United States taxes its residents on worldwide income, which means that your earnings, investments, and financial accounts from around the globe may suddenly be subject to US reporting and taxation. At Lanphier LLP in Denver, we help new US residents understand and fulfill these obligations from the very beginning.

Denver and Colorado have become home to a growing community of international professionals, entrepreneurs, and families. Many arrive with complex financial situations -- foreign investments, retirement accounts, business interests, and trust arrangements that were perfectly straightforward under their home country's tax laws but create new reporting requirements under US law. Our team has deep experience guiding new residents through this transition, helping them avoid common pitfalls and take advantage of planning opportunities that are available only in the early years of US residency.

Key Tax Considerations for New US Residents

Determining Your Tax Residency Status

Your US tax obligations depend on your residency status, which is determined by either the green card test or the substantial presence test. The year in which you become a US resident often involves dual-status filing (part of the year as a nonresident, part as a resident), which requires careful attention to which income is taxable and which elections are available. We help new residents determine their exact status and file accordingly.

Worldwide Income Reporting

Once you become a US tax resident, you are required to report all income from all sources worldwide -- including foreign wages, business income, rental income, investment gains, and interest. Income that may have been tax-free or lightly taxed in your home country may be fully taxable in the US. We prepare your returns to capture all required income while claiming every available deduction, credit, and treaty benefit.

Foreign Financial Account and Asset Reporting

New US residents must disclose their foreign bank accounts (via the FBAR) and specified foreign financial assets (via Form 8938) if they exceed certain thresholds. Many new residents are surprised to learn that failing to report these accounts -- even if no tax is owed on them -- can result in penalties of $10,000 or more per account. We ensure that all disclosure requirements are met from your first year of US residency.

Pre-Immigration Tax Planning

If you have not yet arrived in the US, or if you arrived recently and have not yet filed a US return, there may be valuable planning opportunities available. Certain transactions -- such as stepping up the basis of appreciated assets, restructuring foreign investments, or making elections regarding foreign retirement plans -- are most effective when completed before or immediately upon becoming a US resident. The sooner you engage a knowledgeable advisor, the more options you will have.

Our Denver office welcomes new residents from every corner of the world. Contact us to schedule a consultation and take the first step toward confident, compliant US tax filing.