Tax liability of resident alien

I and my spouse have been granted green card recently. I am 80 years of age and my wife is of 75 years of age. We have deposit accounts in foreign country where we worked earlier. My spouse is a state government pensioner. The value of our deposits are more than $100,000. Our income in foreign country is mostly interest income plus pension of my spouse. We have been regularly filing income tax returns in the foreign country separately on individual basis. We have no income in the US. For the current year 2013, we had resided in the foreign country till July 20. I wish to know the following for 2013 tax year in US:

1. Whether the interest and pension received abroad is taxable in US?

2. Is it sufficient if we declare the value of deposits to the treasury.

Answer : 

I and my spouse have been granted green card recently. I am 80 years of age and my wife is of 75 years of age. We have deposit accounts in foreign country where we worked earlier. My spouse is a state government pensioner. The value of our deposits are more than $100,000=======>>>>>>>>> 

As a US resident, you are subject to US taxes on your US source and world wide income.you are required to file an FBAR tdf 90-22.1due June 30 as long as you have a financial interest in or signature authority over at least one financial account located outside of the US; and the aggregate value of all foreign financial account exceeded $10K at any time during the calendar year to be reported.So, if your offshore bank account balances are more than $10K and you do not report FBAR, you can be subject to stiff fines and penalties by the IRS. In fact, penalties can include jail time.

Our income in foreign country is mostly interest income plus pension of my spouse. We have been regularly filing income tax returns in the foreign country separately on individual basis. We have no income in the US. For the current year 2013, we had resided in the foreign country till July 20. I wish to know the following for 2013 tax year in US:

1. Whether the interest and pension received abroad is taxable in US?======>> 

Yes; as said above, as a US person, you need to pay taxes on your US source and world wide income, however, if you paid or accrued foreign taxes to a foreign country on your foreign source income and are subject to U.S. tax on the same income, you may be able to take either a credit , form 1116 or an itemized deduction on sch a of 1040 for those taxes. Taken as a deduction, foreign income taxes reduce your U.S. taxable income. Taken as a credit, foreign income taxes reduce your U.S. tax liability. In most cases, it is to your advantage to take foreign income taxes as a tax credit.

2. Is it sufficient if we declare the value of deposits to the treasury.=====>>>>>>>>> as mentioned above.yo need to file form tdf 90-22.1 with the the Treasury Department. You must report accounts you hold in foreign banks and other financial institutions..Read more..