2025年9月11日 The First Year for New U.S. Immigrants：A Guide to Worldwide Income Reporting and Tax Residency Determination
Have you already become a U.S. tax resident the moment you arrive?
For individuals who recently obtained a U.S. Green Card through EB-5 investment immigration, entered on an E-2 visa, or hold long-term work visas such as H-1B or L-1, a crucial question arises regarding overseas assets and tax obligations：
When exactly do I become a U.S. tax resident? Do I need to report my worldwide income as soon as I set foot in the United States?
1、What Is a U.S. Tax Resident？Why Identifying the Residency Start Date Matters
The United States follows a worldwide taxation system, requiring all U.S. tax residents to report global income and foreign assets to the Internal Revenue Service (IRS). Tax residency is generally determined under two tests：
1. Green Card Test
If you are issued a U.S. Green Card in a given year, the IRS treats you as a tax resident for the entire year, even if you do not enter the U.S. immediately.
Case Example：
Mr. Wang received his Green Card in October 2025 and entered the U.S. only at year-end. Under IRS rules, he is still considered a U.S. tax resident for all of 2025 and must report his worldwide income for that year.
If you wish to avoid being treated as a full-year tax resident, you may
File for a Residency Starting Date Election, or
Use a Dual-Status Return to report part-year residency.
2. Substantial Presence Test
If you do not hold a Green Card but stay in the U.S. on work visas (such as H-1B or L-1) or business visas, the IRS applies a weighted three-year day-count formula to determine residency：
Formula：
- Current year U.S. days
- 1/3 of prior year’s U.S. days
- 1/6 of the days from two years prior = ≥ 183 days → Tax Resident
Note：You must be physically present in the U.S. at least 31 days in the current year for this test to apply.
Example Calculation
2025: 150 days
2024: 180 days × 1/3 = 60
2023: 90 days × 1/6 = 15
Total = 225 days (≥183) → Tax Resident
2、Obligations of U.S. Tax Residents: Reporting Global Income and Foreign Accounts
Once classified as a U.S. tax resident, you must fulfill the following obligations, regardless of whether income arises from Taiwan, China, Hong Kong, Southeast Asia, or elsewhere：
Report worldwide income to the IRS
File the Foreign Bank Account Report (FBAR)
If asset thresholds are met, submit FATCA Form 8938
Failure to comply may result in
Penalties of tens of thousands of U.S. dollars
Freezing or monitoring of offshore accounts
Complications for Green Card renewal or naturalization
3、Tax Planning for EB-5 Investors and New Immigrants: Strategize Before You Enter
For EB-5 investors or other new immigrants, the period before triggering U.S. tax residency is the most strategic time to adjust asset structures and implement compliant tax planning.
Professional Recommendations：
Begin tax planning at least one year in advance
Build a “tax firewall” through offshore trusts, family companies, or other asset segregation tools
Work with licensed financial advisors and tax attorneys for structuring
Consider tax deferral strategies and maximize non-resident exemptions before residency begins
Use Dual-Status Return in the Green Card year to avoid full-year taxation
4、Filing in the First Year: Key Scenarios for New Immigrants
| Category | Tax Status | Worldwide Income Reporting? | Filing Recommendation |
|---|---|---|---|
| Green Card Holder | Full-year tax resident | Yes | Consider Residency Start Date election or Dual-Status Return |
| EB-5 Investor | Based on entry/residency days | Case-dependent | Consult a tax advisor before filing |
| H-1B / L-1 Visa Holder | Substantial Presence Test | Yes, if 183 days threshold met | Monitor weighted day-count over three years |
5、Conclusion: How Should New Immigrants Begin Their U.S. Tax Planning？
In the U.S., the moment you become a tax resident determines everything.
Instead of waiting until after obtaining a Green Card or work visa to address tax issues, the prudent approach is to undergo a financial review and tax planning session at least one year earlier. This is the cornerstone of risk management and compliance.
At CE Elite Consulting, we partner with experienced tax advisors and legal professionals to guide you through every stage—before, during, and after immigration—ensuring you maintain control over your global assets.
Because in the world of tax and immigration：
The right timing determines whether you stay in control—or lose it.