Basic Tax Question (AOS pending)

[keks&me 0]

Hi again,

already posted my question in another area, but only got views and no answers.

Maybe here...any help is appreciated since we basically have no idea how to treat our taxes this year.

I moved over in November 2010 and we got married December 16th, 2010.

So..obviously my husbands status is "married" now on the tax returns. But what next?

if we say: file jointly? Is this possible and what are the consequences (e.g. do i have to report my income for 2010 that i recieved in Germany? Or from any foreign saving accounts?) and: do i qualify for filing jointly since i am AOS pending right now and not a permanent resident yet.

or...filing seperately: Do i file anything then in the USA at all? Since I have never worked here?

Totally confused and hope for help. Thanks!

[keks&me 0]

Also read in another forum -that since i was not a permanent resident in 2010 (and still pending)..that i might not have to file anything at all (even not reporting my foreign income)

Is that true? And if so..does my husband only have to mention he is married but nothing else then?

[Tinkerbell TX 0]

Also read in another forum -that since i was not a permanent resident in 2010 (and still pending)..that i might not have to file anything at all (even not reporting my foreign income)

Is that true? And if so..does my husband only have to mention he is married but nothing else then?

I've got about the same questions!!!

[keks&me 0]

I've got about the same questions!!!

Cant believe nobody had to go through the same situation before...*bumping thread*

[Dave&Roza 748]

You have two basic choices according to the IRS.

1) The non USC can be considered as a non resident alien for the entire tax year.

2) the non USC can be considered a LPR for tax purposes for the entire year

Option two allows you to file jointly with your non USC spouse and get the advantage of the marriage deduction. However the non USC's income is taxable in the US with this option. You must file a statement that you are claiming the non USC as a LPR for tax purposes signed by both taxpayers. If your spouse comes from a country where the income was small--like my wife--the marriage deduction is of great benefit. If the income is approximately the same as your own then the benefit tax wise may not be that great. However consider the next step for removal of condition as this will show evidence of comingling of assets--a jointly filed tax return.

It is up to you as how you want to be treated this first tax return. After the AOS is approved you are a LPR and then must file a US tax return.

Check out the IRS website for non resident aliens and filing taxes here: http://www.irs.gov/b...d=96314,00.html

Hope this helps.

Dave

Edited March 21, 2011 by Dave&Roza

[keks&me 0]

You have two basic choices according to the IRS.

1) The non USC can be considered as a non resident alien for the entire tax year.

2) the non USC can be considered a LPR for tax purposes for the entire year

Option two allows you to file jointly with your non USC spouse and get the advantage of the marriage deduction. However the non USC's income is taxable in the US with this option. You must file a statement that you are claiming the non USC as a LPR for tax purposes signed by both taxpayers. If your spouse comes from a country where the income was small--like my wife--the marriage deduction is of great benefit. If the income is approximately the same as your own then the benefit tax wise may not be that great. However consider the next step for removal of condition as this will show evidence of comingling of assets--a jointly filed tax return.

It is up to you as how you want to be treated this first tax return. After the AOS is approved you are a LPR and then must file a US tax return.

Check out the IRS website for non resident aliens and filing taxes here: http://www.irs.gov/b...d=96314,00.html

Hope this helps.

Dave

Dave, thank you so much for your answer!!

We definatley want to go by the option 1, considering me as a non resident and so not including anything of me in the tax returns of my husband.

Do you also happen to know what we have to check in the tax forms?

My husband has the choice of checking: filing jointly or seperately. Since we dont want to file jointly, we dont check that..but..we are not really filing seperatley either, so..do we leave both blank??

[HappyRs 8]

My husband and I filed the taxes in February and my AOS was pending. We filed jointly with Turbotax. We ticked the box about income earned abroad, but we only had to fill out my husband's income information. Nowhere did they ask for how much I had earned in Romania or anything like that. We got our return in 8-10 days without any problems.

[ChelseaKate 3]

I arrived here in the US Nov. 29, 2010, got married Dec. 18, 2010. When it's time for my husband to file his taxes, we filed jointly since I already have my SSN. Our applicatiion was approved, no problem at all. He listed me as his wife, i didn't have to file separately. I don't work so, in your case, i'm sure you both can file jointly.

Cant believe nobody had to go through the same situation before...*bumping thread*

[ChelseaKate 3]

My husband and I applied jointly for our tax return. I didn't have to report my income from foreign accounts. They only asked for my SSN. It's been approved.

Hi again,

already posted my question in another area, but only got views and no answers.

Maybe here...any help is appreciated since we basically have no idea how to treat our taxes this year.

I moved over in November 2010 and we got married December 16th, 2010.

So..obviously my husbands status is "married" now on the tax returns. But what next?

if we say: file jointly? Is this possible and what are the consequences (e.g. do i have to report my income for 2010 that i recieved in Germany? Or from any foreign saving accounts?) and: do i qualify for filing jointly since i am AOS pending right now and not a permanent resident yet.

or...filing seperately: Do i file anything then in the USA at all? Since I have never worked here?

Totally confused and hope for help. Thanks!

[Nich-Nick 3,353]

I answered this in January so copy/pasting here. It was to a UK couple, but you'll get the idea. If you have a SSN, then use it and ignore to part about getting an itin number. Mail the return to your regular filing location for your place of residence unless you need an itin.

-------------

The USC was married in 2010 and should NOT file single. The status will generally be "married filing separately" if he doesn't want to file jointly. Filing jointly will be an advantage tax-wise. You will have to do a couple of extra steps this year.

•You will complete your joint tax return leaving a blank where a SSN or itin would go for your spouse. The 2010 UK income will be converted to US $$ and reported (under less common income on TurboTax). It is self reported as is the conversion rate. Form 2555 or 2555EZ will be filled out for the foreign income exclusion. They want to know worldwide income, but then you get to exclude up to $91k-ish.

•You will write a statement saying you are a US citizen and he/she was a non-resident alien on the last day of 2010 and you both elect for him/her to be treated as a resident alien for tax purposes. That's required for him/her to file jointly with you as he/she is not a resident yet by immigration rules. But for the IRS, the statement will allow him/her to be considered a resident as far as filing taxes goes. Otherwise a non-resident can not file a joint return. You both sign the statement and each list you name, address, and id number (SSN and A-number). Staple it to the end of your return.

•You complete a FORM W-7 ticking reason "e" and giving your name and SSN on the line beside it. You must provide identity with the w-7 and his/her passport will be enough. The IRS says this "If you submit an original valid passport (or a notarized or certified copy of a valid passport) you do not need to submit any other documents. If you do not submit a passport document, you must provide a combination of documents (at least two or more) that are current and that (1) verify your identity (that is, contain your name and a photograph), and (2) support your claim of foreign status."

•Mail you tax return (signed by both), the statement, the W-7 and identity document to

Internal Revenue Service

ITIN Operations

P.O. Box 149342

Austin, TX 78714-9342

NOTE: This a special division and not where you would normally file your return. They will process the itin in Austin and add the itin number to the tax return you sent with it. Then the tax return will be processed. It will take a little longer.

-------

Back to this thread. If you were married in 2010 you've got two choices---

1. USC files Married Filing Jointly (follow steps above for writing the required statement)and reports the worldwide income (but gets to exclude it). IT IS NOT TAXED.

2. USC files Married Filing Separately and foreign spouse files nothing.

Work it out both ways and see which is best for you. It's almost always better filing jointly. Remember a spouse gets an extra $9350 taken off your taxable income. If you qualify for "Making Work Pay Credit" an individual gets $400. A couple gets $800. Married filing separately is taxed higher than Married Filing Joint.

Some of you filed jointly without claiming the worldwide income or writing the statement. That is not allowed according to IRS publication 519, but you probably won't get caught unless they decide to audit your return at a later date.

[Hellzbelz 0]

Hi,

I've read many posts and haven't been able to find the specific thing we need to do for our 2010 return. My wife was a NR Alien at the end of 2010 (she arrived on June 24, 2010 and we married in July); our I485 was still pending as of 12-31-2010 (we were approved in January) :-) I know we need to attach the statement asking that my wife be seen as a resident of the US for the entire year. However, she has NO INCOME for the entire year of 2010; including Russia and here in the US. I want to be sure that I am not missing some other form to file. The 2555 does not seem to apply to our situation. Is there anything else we need to include with our return??!! Anyone's advice is greatly appreciated!!! :-)

Jim

[Nich-Nick 3,353]

Hi,

I've read many posts and haven't been able to find the specific thing we need to do for our 2010 return. My wife was a NR Alien at the end of 2010 (she arrived on June 24, 2010 and we married in July); our I485 was still pending as of 12-31-2010 (we were approved in January) :-) I know we need to attach the statement asking that my wife be seen as a resident of the US for the entire year. However, she has NO INCOME for the entire year of 2010; including Russia and here in the US. I want to be sure that I am not missing some other form to file. The 2555 does not seem to apply to our situation. Is there anything else we need to include with our return??!! Anyone's advice is greatly appreciated!!! :-)

Jim

If she had no income then there is nothing to report so no Form 2555 to exclude it. Just complete the statement and both sign it. Do the ITIN thing explained above if she didn't get her SSN. Nothing much different for your return except married filing joint status and a better refund.

[Hellzbelz 0]

If she had no income then there is nothing to report so no Form 2555 to exclude it. Just complete the statement and both sign it. Do the ITIN thing explained above if she didn't get her SSN. Nothing much different for your return except married filing joint status and a better refund.

Thanks for this info! Now that she is a PR, next year's return will be much easier :-)

Jim