I am a US permanent resident planning
to leave US and giving up the green card. I have several questions, mostly related to US and California tax
- Thailand citizen.
- Green card holder for 6 years. (H1 before that)
- Work with a company in California.
- Married. Wife is in Thailand. Our tax return has been married filing jointly
, treating her as resident for tax purpose. Her income is reported but we use Foreign Earned Income Exclusion.
- Plan to move to Thailand around middle of the year and give up permanent residency.
- Assets in US: cash in bank accounts, stocks, mutual funds, 401k, company's stock (RSU, ESPP) and option.
Questions: (for both Federal and California tax)
(1) I would like to confirm the process, just before leaving.
- Submit sailing permit (1040C).
- Inform USCIS about surrendering green card. (Do I need to inform IRS separately?)
- Send form W-8BEN to my brokers/banks/mutual funds/401k to inform the change of status to foreign.
Is this correct? Do I miss anything?
Ideally, I would like all of these to happen near the same time, because I need to have green card until my last day of employment, but I want to have foreign status before starting my new job in Thailand if possible. Can this be done?
(2) Is there any difference in terms of tax if I exercise vested stock options before or after leaving US? What about selling company's stocks or any other stocks? (My company policy is that I need to exercise stock option within 30 days of employment end, but can keep company stocks.)
(3) At the beginning of next year, I will need to file tax return. Is it correct that I can only file as married filing separately? I should include only income before leaving US, right?
(4) After that, do I need to file tax return (tax year 2014 and later)? Assume that I only buy/sell stocks, mutual funds, earn interest/dividend, but do not touch 401k. What if I take out 401k? Is it possible that 401k is taken out in very small portion each year so that I do not need to file tax?
(5) I have contributed to social security for 10 years. Will I be eligible even after becoming foreign status?
(6) Do you have any other suggestion or anything I need to be mindful about?
Thank you very much.