Job change and tax implications

[Taxbuddyct]

Hi,

this year I switched my employer on sep 1st as well as I changed my status to permanent residence. How it will impact my tax

jan 1st to aug 31 - emp a with h1

sep 1st - emp b with permanent residence

[NateTheGrEAt · Accepted solution]

Hi taxbuddyct,

Congrats on becoming a permanent resident.

It sounds like you could have been a tax resident of the US already as an H1 visa holder, depending on when you came to the US. Becoming a permanent resident (ie a green card) changes your legal residency status and makes you into a tax resident if you were previously a tax nonresident. However, the rules for tax residency and legal residency are different and unless you came to the US very recently you would likely have already been a tax resident even prior to getting the green card. You can review IRS Pub 519 for details - read the section on the Substantial Presence Test in Chapter 1. 

https://www.irs.gov/pub/irs-pdf/p519.pdf

I hope this helps answer your question!

[Taxbuddyct]

thanks so much for your reply. It helps.