Building a comfortable financial future is a big task at the best of times. Doing it while coming from another country can be doubly so.
That's because the current era of anti-immigrant sentiment has a real impact on financial security. About half of immigrants of all statuses report having trouble paying for housing, food and healthcare, according to the KFF/New York Times Survey of Immigrants.
Of course, some portions of the immigrant population have specialized and in-demand skills, and can earn large salaries. But that too can be complicated, because when it comes to issues like taxes and estate planning, you could have two nations that are keenly interested in your growing assets, not one.
Nevertheless, the American Dream is a powerful one, continuing to lure people from all over the world. Consider holders of H1B visas, for specialized talent: Around 400,000 such visas were issued in 2024, according to Pew Research Center. There are also around 12.8 million Green Card holders, or lawful permanent residents. Then there are naturalized citizens, about 26 million residing in the U.S. as of 2024.
First-generation Americans might wonder about financial questions like:
What is the typical tax treatment of immigrants?
In broad terms, income earned in the U.S. is treated and taxed just as any other resident. But particular issues you might have to contend with include the reporting of foreign bank accounts, if you still hold assets in your country of origin. The U.S. has tax treaties with over 60 countries, to help avoid issues like double taxation. The IRS has compiled tax FAQs for new immigrants here.
How could immigration status affect my career?
Some types of visas, such as the H1B, are tied to a particular job. So, if you lose that employment, your status is endangered and you could have to leave the country. Green cards, in comparison, are not attached to specific jobs. But they are not indefinite and occasionally must be renewed. Depending on personal circumstances, that renewal could be rejected and put your status in the country at risk.
Keep in mind that the current administration has been applying harsher visa standards—such as with the H1B and its new $100,000 fee, which recently ran into trouble in the courts. A more restrictive process will likely result in fewer approvals, and fewer companies wanting to go through the application process in the first place.
With all temporary visas, this is obviously an era of increased scrutiny, and immigrants do not enjoy as many legal protections as fully naturalized citizens. For unexpected changes in your immigration status, which could interrupt career progress or even force you to leave the country altogether, having a large emergency fund would be wise to help navigate turbulent times.
How should I arrange estate planning?
This should be an area of particular attention because of the many complexities involved. As a first-generation immigrant you may very well have family members abroad, and perhaps financial accounts or even real estate. If anything were to happen to you, multiple jurisdictions would be interested in those assets and how they are distributed.
Best to seek out professional advice, preferably from those with some cross-border experience; the Financial Planning Association and the National Association of Estate Planners and Councils have searchable directories. Different systems of laws and inheritance taxes could be competing for primacy, especially if you don't have proper documentation in place. But careful advance planning could ensure the success of your American Dream is passed down through generations.