Financial Planning for Immigration Status Change (2025)

A change in immigration status, whether you’re planning to become a permanent resident, naturalized citizen, or switching visas, can have a big effect on your finances.

These changes impact all aspects of your tax filing status, including the types of jobs you can hold, as well as your access to credit and benefits. That is exactly why you must understand these changes so you can stay financially secure.

This guide will help you understand the essential steps to take with your finances, including updating your tax and social security information, building credit, managing your health and your family’s health information, and saving money.

Step 1 – Understand the Financial Implications of Your Status Change

If you change your immigration status, it can affect the types of work you can obtain, your tax obligations, and your eligibility for financial assistance. People who live in the country permanently can get personal loans, work for most companies, and claim some tax credits.

Visa holders may not be eligible for all jobs and may not be entitled to all benefits or credits. Everyone is required to file taxes, and you may need a Social Security Number (SSN) or an Individual Taxpayer Identification Number (ITIN).

You can now open additional bank accounts or secure loans with your new position. Permanent residents have more loan options than temporary visa holders.

After obtaining your permanent residency, filing taxes correctly is crucial to maintaining your status. You can also talk to a tax expert to get specific help for your case. They can explain tax filing, credits, and job rules based on your new status.

After changing your immigration status, update all your information with the IRS and Social Security Administration. This ensures that your taxes are filed correctly, with the appropriate deductions and credits.

If you don’t have an SSN, you should apply for one. If you get a new SSN or TIN, tell your employer and banks to update their records.

If you’ve already had an ITIN, give the IRS your new SSN so they can link your old tax records. This prevents tax problems and ensures that all earnings are accounted for. Keeping tax and Social Security records up to date helps you avoid filing issues and ensures your benefits are clear.

Step 3 – Review Your Employment Options and Income Sources

After changing your immigration status, it directly affects your work options, so you can explore job and income source opportunities that are available under your new status. Also, make sure your employer updates your work details.

Suppose you are allowed to start a business or invest in the US. In that case, you should take advantage of this opportunity, as your new status could open up more opportunities for entrepreneurship or investment. A proper understanding of your employment rights helps you avoid legal issues and make the most of your new status.

Step 4 – Build Your Credit and Financial History

Building your credit history is crucial when you’re new to establishing credit, as it enables you to obtain loans, credit cards, or mortgages. Your credit limit is set by the amount of cash you put down on a protected credit card.

It works the same way as any other credit card. Your credit score goes up when you use it wisely and pay your bills on time and in full. It’s a good option if you have some money set aside and want credit quickly. Over time, you might upgrade to an unsecured card.

A credit-builder loan is a small loan that you repay over a period of months. The money that is borrowed stays in a savings account until you pay it off. This loan helps build your credit by showing steady, on-time payments.

It’s useful if you can’t or don’t want to deposit money up front. Both methods report your payment history to credit bureaus, which banks use to calculate your credit score. Monitoring your credit report regularly helps catch errors, especially those tied to your immigration status.

Step 5 – Open US Bank Accounts and Financial Accounts

After you change your immigration status, you should open or change your US bank accounts as soon as your immigration situation changes. Some banks will require proof of your legal status before allowing you to open or maintain an account.

Consider opening different accounts, such as savings, checking, and retirement accounts, which often offer favorable terms for new customers.

Many banks can use an individual taxpayer identification number (ITIN) instead of a Social Security number (SSN) if you don’t have one. Most of the time, you’ll need to show a government-issued photo ID, proof of your US address (such as a rent or utility bill), and possibly an initial deposit of $25 to $100, depending on the bank.

Researching which services provide the best rates and fees for international transfers is a good idea if you intend to send money abroad.

Some accounts are designed to support easy, low-cost cross-border transactions. Since rules vary by bank, call ahead to check what documents they require. Opening a bank account helps you manage your money smoothly in the US after your status change.

Step 6 – Plan for Taxes Based on Your New Status

Your new immigration status in the US may impact how you file and pay your taxes, so ensure you understand the necessary steps.

If you have a permanent resident card (green card) or are a citizen, you generally have to report all of your income from anywhere in the world. However, individuals on work visas may be subject to different rules.

You might be qualified for the Foreign Earned Income Exclusion, which lets you keep some of the money you make abroad out of your US taxes. For 2025, each person can keep up to $130,000 in eligible foreign wages.

You can look to see if the US and your home country have a tax treaty. Sometimes, treaties can help you escape being taxed twice or pay less tax. Rules vary by country, so check what applies to you.

Step 7 – Review and Update Your Health Insurance Coverage

The chances of your health insurance plan changing are high after the legal status change. But this time, you can get coverage through the health insurance marketplace, your job, or government programs like Medicaid or CHIP.

You must also ensure that your family members are covered under the right insurance plans. You should also explore options during open enrollment or special enrollment periods triggered by life events, such as marriage or loss of other coverage.

It is essential to review your coverage options periodically to avoid gaps and ensure that you and your family have the best possible healthcare support.

Step 8 – Establish an Emergency Fund and Start Saving

With your changed financial situation, it’s essential to reassess your savings plan and establish an emergency fund. You can try to save enough to cover your living expenses for 3 to 6 months. Having this money stored in your savings can be easily accessed whenever you need it most.

You can also set up an automated transfer of money from your payment or main account, making it easier for you to save without having to remember. If your employer offers a retirement plan like a 401(k), you can contribute to it, especially if they match your deposits. This helps grow your savings faster over time.

As a permanent resident or citizen of the US, you can contribute to and receive benefits from Social Security. Your eligibility depends on your work history and past earnings.

Review your Social Security statements to see all your past earnings records so you can get your future benefits. These statements show how much you might be receiving in retirement, disability, or survivor benefits.

Along with Social Security, you can save for retirement by contributing to accounts like a 401(k) via your employer or an Individual Retirement Account (IRA). If you’re new to the US tax system, setting up automatic contributions can help you build your retirement savings and take advantage of tax benefits.

Read related blog: Personal Loans for H-1B Visa Holders

Step 10 – Update Your Estate Plan and Legal Documents

With your new immigration status, it is essential to review your estate plans and legal documents. Review your will, healthcare directive, and power of attorney to ensure they comply with U.S. laws and reflect your current situation.

If you have children or dependents, confirm your estate plans clearly and state the guardian and how your assets will be distributed among them. This will help you ease confusion later. Consider hiring an estate planner to provide you with expert advice on protecting your assets and ensuring a smooth transfer to your heirs.

FAQs on Financial Planning for Immigration Status Change

How do I handle my taxes after a change in immigration status?

You must file taxes based on your new status. Permanent residents file taxes on all income worldwide using Form 1040, but visa holders may use different forms. Get a Social Security Number (SSN) or ITIN if you don’t have one and update all records.

What financial benefits am I eligible for after becoming a permanent resident of the United States?

You can get more loan options, work more jobs, and claim tax credits.

Can I open a US bank account with a temporary work visa?

Yes, most banks do accept visa holders, but the rules and documents needed can vary from bank to bank.

How can I establish a strong credit history as a recent immigrant?

You can use secured credit cards or credit-builder loans, pay bills on time, and monitor your credit report to build credit history as a recent immigrant.

How can Beem’s Everdraft™ help me manage financial gaps during my immigration status change?

Beem’s Everdraft offers cash advances to cover costs in emergencies or gaps before paychecks. It also helps you answer basic financial and tax questions after your status change in the US.

Conclusion

Changes in immigration status are indeed exciting transitions, but they can affect your financial life and change how you pay taxes, the jobs you have, and the loans and benefits you can get. To maintain financial security, it’s essential to update your tax status and Social Security information, build your credit, and establish health insurance and savings plans.

Consider options like Beem’s Everdraft, which can help you handle your new financial situation with confidence in the US, building a strong and safe future. Download the app now!