Should I apply for a U.S. green card rather than renew my temporary work visa?

When a non-resident, non-U.S. citizen individual goes to the U.S. to work and live temporarily, after their term is almost up and they are contemplating staying in the U.S., many wonder if they should be applying for a U.S. green card rather than renewing their temporary work visa; however, most of the time they don't realize what it means to apply for and obtain a U.S. green card.

Having a U.S. green card will allow the holder to live and work anywhere in the United States; however, it also subjects that individual to all the U.S. tax laws and regulations that are applicable to other U.S. citizens and permanent residents.

The green card serves as proof that its holder, a lawful permanent resident (LPR), has been officially granted immigration benefits, which include permission to live and work in the United States. The holder must maintain permanent resident status, and can be removed from the United States if certain conditions of this status are not met.

A person may have technically abandoned their status if he or she moves to another country to live there permanently, stays outside the U.S. for more than 365 days (without getting a re-entry permit before leaviing), or does not file an income tax return; however, until you officially surrender your green card, you could still be considered a permanent resident for tax purposes, which means you must still abide by all the U.S. filing requirements. Failure to renew the green card does not result in the loss of status.

Excerpted from Canadians & The IRS. © Knowledge Bureau, Inc. All rights reserved.