Green Card vs. US Citizenship

Return to India (R2I) decision becomes a moving target for many folks because of the desire to get a Green card or US Citizenship. I have heard many Indians say "I've stayed so long in this country... I would rather get my Green card before I go back". In the quest to learn more about the benefits of US Citizenship vs. Green Card, I started doing some reading (actually research).  Here is a summary of my findings.

(Also read: Going to US through a consultant on a H1B visa?   When is the right time to go to US? )
   
Green card provides you lawful permanent residency and allows you to live/work in US, on a permanent basis. US Citizenship makes you a citizen of the country, and eligible for almost all the benefits enjoyed by born citizens.

Residency Status Maintenance

When you move to another country, intending to live there permanently, you loose your Green Card privilege. Typically, this happens when you live outside US for more than a year without obtaining a re-entry permit. Government has the "authority" to invalidate your Green Card, for durations of stay less than a year outside the country. You need to file your tax returns when you are outside the country - failing which, your Green Card status may be at risk.

When you have a Green card, you've to keep UCSIS informed about your new address within 10 days of changing your address. (Also read: R2I Checklist for Change of address)

You don't have any of these issues when you have a US Citizenship. You can be living anywhere and for how long so ever. UCSIS recommends US Citizens to "register" with your nearest consulate, so that, they can help you in case of any emergencies.

Starting a business

When you have a Green Card, you can start your own business and corporation, like any other US Citizens. H1B visa holders are authorized to work for a 'specific' employer in US. So, they aren't authorized to start/run their own business.

Employment/Job

When you have a Green Card, you can join a company immediately after you get the offer, like US Citizens. You don't have to go through any hassle like H1B visa holders.

As a Green Card holder, you will have the right to apply for government jobs which do not require security clearance. Jobs that require security clearance are filled with US citizens only. (Also read:  R2I Job Search)

Travel

When you have a Green Card, you still need to obtain visa to travel to countries like Schengen nations in Europe. US Citizens don't require a visa when traveling to Schengen countries.

US Citizens are encouraged to register with the nearest US Consulate when they travel outside US, and be in a country for a long period. It helps UCSIS to reach them, in case of emergencies.  (Also read: Places to see in USA)

Immigration

When you have a Green Card, you don't have a "time limit" to stay within US (like US Citizens and unlike H1B visa holders). When you go through the immigration checkpoints in US, you won't get the funny questions from immigration officer "How long are you going to be here? & What is the nature of your visit".

Tax

With respect to Tax, there is no difference between Green Card holders and US Citizens. Tax laws are for the "residents" of United States. You are considered a resident of United States if you stay in the country for 183 days or longer. You're then qualified to pay tax.  (Also read: Filing tax returns in US after your R2I - Some tips)

Financial Aid / Mortgage

You can get loans from banks irrespective of whether you are a US Citizen or a Green Card holder. have a Financial institutions prefer Green Card Holders & US Citizens when issuing home loans - because of their "permanent residency" status.

Some of the financial aids given by Government are for US Citizens only.  (Also read: How much money is enough to R2I)

Right to Vote / Elections / Politics

Green card holders do not have the right to cast their vote in elections. However, folks with US Citizenship can vote. US Citizenship allows you to contest in elections, except for the post of United States President - a President must be a US born citizen (Yes ! Arnold schwarzenegger isn't qualified to be the President of US). Immigrants are not eligible to run for the office of President, no matter how long they have lived in the country. However, your kid born in US is eligible to contest for the post of United States President :)

Green Card holders & US Citizens can make financial contributions to politics, whereas foreigners/visa holders cannot.  

(Disclaimer: I haven't taken any effort to verify the legal accuracy of this article. Please consult with your attorney for accurate details)

References

Retaining Green Card
Pre-requisites to become a US President
Benefits of Green Card
Tax Topic - Resident & Non-Resident Aliens
Green Card Renewal
Smart Traveler Enrollment Program for US Citizens

When is the right time to go to US?

Are you one of those folks who dream about going to US, but haven't taken any action towards it? Are you waiting for the 'perfect' time to go to US? Have you been procrastinating your move to US? Are you not sure about when to go to US? I have seen people walking into this dream land during different stages of life. I'll share my perceptions here & hopefully, it helps you in making a decision.  (Also read: Green Card vs. US Citizenship)

Right after your college education - Many folks go to US to do their higher studies. Leading a student life is a bit difficult - not much money at hand; have to maintain multiple credit cards to payoff bills; have to work somewhere in addition to studies etc., But, you'll learn lots of interesting life lessons during this period. Depending upon the university you join, you'll also get good academic knowledge. You can also develop a network of friends during your school. Only thing you'll miss is "luxury", unless your parents have piles of cash under their mattress. You'll complete your higher studies in 2 or 3 years. After that, when you get into a full-time job, your quality of life will improve tremendously. (Note: I haven't seen someone going to US to "work", right after their college. You'll need some work experience in India before going to US to work)

When you are a bachelor - This is the time when you can take more risks. You have everything in the world to GAIN but very little to lose. It will be more fun when you have lots of friends in US (especially, in the same locality where you live). You can do a variety of things with your friends - regular get togethers, lots of driving, visiting new/interesting places, hiking/sports, hangouts during nights, etc., Also, you'll have lots of time to work - you can go above and beyond what is expected out of you at work. This period will help you to 'establish' yourself at work. Even if you don't have a stable or high-paying job, you can take the hit during your bachelor days. Your cost of living will also be very low (because of shared accommodation/expenses). You'll be able to save a lot of money during this period.

Right after your wedding - Spending the first few years of post-marriage life in US is exciting. Your spouse would enjoy getting your total attention (i.e., you won't be disturbed by family/relatives etc.,). You can also visit a lot of places. You may have some challenge with respect to achieving work-life balance. If your spouse cannot work in US & if you are spending more hours at work, your spouse may feel lonely. Some spouses may enjoy loneliness and others may not. I have seen a case where it ended up in divorce, right after a year. If you don't have a stable job or don't have good pay - you may have to lead a conservative life (i.e., you cannot buy a lot of things for your home, you may not be having a car, you cannot dine out frequently etc.,) The single biggest expense during this period will be your house rent. Other expenses are somewhat manageable. If you have a stable job & good pay, you can lead a luxurious life.

After your kid - Going to US during this stage of life will be challenging. You need to have lots of patience & tolerance. You should be able to adapt quickly to the changes/challenges. If you have a stable job & good pay, you can lead a decent life. However, job stability in US is always a big question mark - especially during the first few years of your career in US. Moreover, your starting salary would be typically less. If your kid is too small & if your spouse is also not working, you'll feel the pinch. You may not be able to do justification to your work as well as your family (i.e., establishing work-life balance would be difficult). During the initial days, if the kid gets sick, you may have to depend on someone to take you to hospital & you may need help from your friends to do even shopping. You have to lead a conservative life because the expenses will sky rocket (house rent, groceries, medical bills, commute/travel costs, kids' toys, etc.,). When the kid is above 2 years, you need to put him/her in pre-school. For a kid to go to a day care or a pre-school, you need to pay atleast $500/$600 per month. After 4 years, if you cannot put your kid in public school, you need to pay atleast $1000 per month as private school fees. You have to sit tight on expenses. If your objective is to earn money in US, you may not be able to achieve your goal quickly (especially, if there is only single income).

In Tamil, there is a saying "Thirai kadal oadiyum thiraviyam theadu" which means "Sail across ocean to find wealth". Going to US gives you lots of exposure & can also make you rich. Unless, you have family reasons that force you to stay in India, I would highly recommend you to go to US and work for a few years (especially, if you are in the IT field).

Related posts:

Going to US through a consultant on a H1B Visa?
Stages of Immigrant Life in USA
Green Card vs. US Citizenship

Going to US through a consultant on a H1B visa?

Thinking of going to US through a consultant on a H1B visa ? What are some of the things that you need to look for? Here is the list of guidelines/tips that I normally share with my friends. Hope you find this useful.

(Also read: Green Card vs. US Citizenship)

1) Money to sponsor H1B visa - Consultants shouldn't be charging you money to sponsor H1B visa. It is definitely illegal. If you are paying your consultant, then you are taking a risk.

2) Employment Bond/Contract - The consultant may insist you to sign a bond (i.e., He/She may ask you to stay with them for a finite period). An employer cannot legally force you to be in the same company for a specific period. When you violate the terms in the bond, the cost of fighting with you legally is also very high. The consultant has to pay a lawyer to take this to court. The money that he may get back from you will be very very less than what he paid for the lawyer. So, even if you signed a bond, you don't have to worry much. You can move away from the consultant at any time.

3) Salary - The salary structure varies drastically. Some consultants offer a fixed salary and some may offer a % of the pay that they get from the clients. It is always recommended to negotiate a fixed pay. However, you don't have to be hung up on fixed pay. Consultants normally charge their clients hefty amount per hour. So, % of the pay is also a good deal. Normally, folks stay with a consultant for a very short period (3 - 6 months). So, the actual salary doesn't really matter.

4) Medical Insurance - Check who should take care of the medical insurance. Typically, the consultant should take care of this. However, the consultants may insist that you take care of it. You should pay more attention to the medical insurance if you are going there with your family or if you have some existing medical conditions. Medical insurance cost is normally high in US.

5) Who gets you the job? - Consultants who have good contacts in the industry can get you placed fast. People working in the 'hot' technology areas/domains typically find jobs/clients on their own because there are ample opportunities. Consultants need not be relied upon. If the consultant has already placed people in reputed firms, he/she can leverage that relationship. (Note: You will need a confirmed offer letter from a client for visa interview. So, it is better if the consultant can get you a job before your visa interview. U.S embassy verifies the authenticity of the offer letter by contacting the client directly. So, don't try to cheat. You may end up in jail :))

6) Flight tickets - Flight tickets should also be legally paid by the consultant. However, the consultant may ask you to pay for it and get it reimbursed after you reach USA. It is absolutely fine if you have a written commitment.

7) Pay during the bench period - This is a tricky thing. Many consultants don't pay their employees in bench (i.e., when they are looking for a job/client). However, they are legally supposed to take care of ALL your expenses (or pay you) during your stay. Some consultants take care of your accommodation and give you a fixed pay for your expenses. You need to negotiate this in advance.

8) Premium Visa Processing - Check if the consultant would do a 'premium processing' of visa. Premium visa application processing will be over in just 2 weeks. So, if you want to speed-en up things, you can ask for this. (Note: Normally consultants don't do premium visa processing because it costs them more. They'll do it only if their clients insist on it).

9) Consultant's Office Location - Choose a consultant closer to your job location. For ex., silicon valley has lots of job opportunities in 'hot' domains. So, if you are working in such domains, you've to choose a consultant in silicon valley. Normally, consultants prefer you to work in their office during the bench period. (Note: Companies hiring contractors would not pay for flight tickets if you've to travel for interviews. Normally, companies hire local candidates for contracting positions. So, it is recommended if your consultant is closer to your job location)

10) Consultant's Professionalism - Check if the consultant is professional enough with all the dealings. This is very important. There are very few good stories that I've heard about consultants. They typically tend to be greedy (The reason being ... you stay with them only for a very short time & hence, they want to get maximum out of you).

(Treat these as just guidelines. I'm not responsible for the outcome of any decision that you may take based on this ;-))

Related post:

When is the right time to go to US?
Green Card vs. US Citizenship

Stages of Immigrant Life in USA

I got a weird idea today to document the different phases of an immigrant's life in USA. I gave it a shot with MS Powerpoint 2007. I definitely enjoyed doing this exercise. I hope you enjoy it, too.



Disclaimer: The information posted in this blog is purely based on what I saw, heard and experienced. Your individual outcome/situation may vary :)

Also read:

Guidelines to consider when getting a H1B visa through a consultant
When is the right time to go to US? 
Subway experience - How much can you change?
Green card vs. US Citizenship