Hi, I need help with my mom's taxes. She's a permanent resident that's been doing her taxes for a couple years as a resident alien (she was self-employed).
Last year she started receiving her Polish pension and also ceased to work completely in the US, but still lives there (and not planning to change that). long story short, her accountant said since it's a Polish pension, she doesn't have to file any taxes, but she still filed it for 2025 as self-employed. Not what we asked for and I'm already telling her to ask for an extension on taxes, but that's where the confusion starts.
I started reading about it, and it looks that if she claims tax exemption under US-Poland treaty, she would become a non-resident alien? How would that affect her green card? How would that affect her Medicaid application (in NJ)? At the same time, https://www.irs.gov/individuals/international-taxpayers/claiming-tax-treaty-benefits under Exceptions, IRS states:
The payee does not have to file Form 8833 for any of the following situations:
The payee can claim a treaty exemption that reduces or modifies the taxation of income from dependent personal services, pensions
So... she doesn't have to report it? At all? Or os there a different form she needs? But again, would that mean giving up her resident alien tax status and potentially jeopardizing her green card extension in the future?
Yes, I'm doing her accountant's job now...
I'd really appreciate your help here! I'm from Poland, living in the UK, our taxes are mostly automated, so this is A LOT 😭
THANK YOU!