Filing I-485 triggers a period of uncertainty. Here's what you can and cannot do financially while waiting for your green card.
Adjustment of Status: Financial Guide for I-485 Applicants
Filing I-485 triggers a period of uncertainty. Here's what you can and cannot do financially while waiting for your green card.
Financial Status: Green Card vs Work Visa
| Financial Area | Work Visa (H-1B, L-1) | Green Card | Citizenship |
|---|---|---|---|
| Tax filing | Form 1040 (resident) | Form 1040 | Form 1040 |
| Worldwide income tax | Yes | Yes | Yes (even abroad) |
| Social Security | Yes | Yes | Yes |
| Medicare | After 10 years | After 10 years | Yes |
| Mortgage access | Good | Excellent | Excellent |
| SBA loans | Limited | Yes | Yes |
| FBAR/FATCA | Yes | Yes | Yes |
| Exit tax on leaving | No | Possibly | Yes (if thresholds met) |
What Changes When You Get a Green Card
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Better Mortgage Terms
Lenders view permanent residents nearly the same as US citizens. You'll qualify for:
- Conventional loans (3-20% down)
- FHA loans (3.5% down)
- VA loans (if military service)
- Better interest rates than work visa holders
Access to More Financial Products
- SBA business loans
- Premium credit cards with higher limits
- Better auto loan rates
- 529 plans for children's education
Full Retirement Account Access
- 401(k): Same contribution limits ($23,500 in 2025)
- Roth IRA: Same income limits and contribution amounts
- HSA: If you have a high-deductible health plan
- 529 Plans: For children's college savings
Tax Obligations as a Permanent Resident
Green card holders pay taxes on worldwide income — including:
- US wages and investments (same as before)
- Foreign rental income
- Foreign dividends and interest
- Capital gains from foreign assets
FBAR (FinCEN 114)
If your foreign bank accounts total more than $10,000 at any point during the year, file an FBAR by April 15.
FATCA (Form 8938)
If foreign financial assets exceed $50,000 (single) or $100,000 (married), file Form 8938 with your tax return.
Long-Term Planning with a Green Card
With permanent residence, you can make financial decisions you couldn't before:
1. Buy a home — you're here to stay (or choose to leave on your terms)
2. Start a business — SBA loans and better credit terms available
3. Maximize retirement accounts — 401(k), Roth IRA, HSA, 529 all available
4. Build generational wealth — real estate, equity investments, and estate planning
Resources
- USCIS Green Card Information
- IRS Green Card Holder Tax Guide
- FinCEN FBAR Filing
- SSA Benefits for Non-Citizens
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