Do I need to pay US income tax on foreign earnings?

The immigration and adaptability process in a new country involves several obligations, including tax matters. Many immigrants, when obtaining visas such as the EB-3, have questions about taxation in the United States, especially regarding the reporting and payment of taxes on income earned abroad.

In the United States, tax residents – that is, those who hold a green card or meet the substantial presence test – are taxed based on their worldwide income. This means that, regardless of where the income is generated, including those originating abroad, they must be reported on the annual income tax return (IRS). Thus, if you become a US tax resident through the EB-3 visa, income received outside the country must be reported and may be subject to taxation.

However, it is important to mention that there are mechanisms, such as tax credits to avoid double taxation or, in some cases, specific exclusions – like the Foreign Earned Income Exclusion – that can mitigate the impact of paying tax twice on the same income. Each situation is unique, and the application of such benefits will depend on various factors, such as the length of stay abroad, the nature of the income, and tax treaties the US has with other countries.

I recommend that, when faced with doubts about tax obligations, you seek guidance from professionals specialized in international taxation and who are up to date with US legislation. Correctly following immigration and tax laws is essential to avoid complications that can, in addition to imposing financial burdens, affect regularization and stay processes in the country. Also be cautious of miraculous service offers or promises of quick results, as these often are part of marketing campaigns with inaccurate information.

In summary, if you are considered a tax resident in the United States, the reporting and payment of taxes will include your foreign income – but there are many nuances and possible benefits that may apply to your case. Staying informed and seeking appropriate support is the best way to comply with all legal requirements and avoid future problems.

Victoria Harper

Editor-in-Chief

Meet the author

Leading journalism and editorial content at Visto n’ Visa, Victoria helps make immigration topics clear, trustworthy, and easy to understand. Her focus is on delivering useful, human, and relevant content for people exploring new paths abroad.