Interesting information on taxes

[Darnell 8,479]

Not sure if I'm posting this in the right forum. But since I'm petitioning for a CR-1 I'll throw it up here and see if others know.

My uncle is a retired financial executive and CPA so I have been asking him questions about what to do in regards to taxes when my wife gets her visa and moves here from Japan. He is still looking into this and said he will call the IRS and speak to them...but here's what he found out. The way the IRS law is written, when my wife comes over from Japan, any income she made at her job in Japan during 2013 we will have to claim on our 2013 taxes. He said that this applies specifically to legal permanent residents. I was quite surprised when he told me this...that the government will make us pay taxes on money she earned as a citizen in Japan that she already paid taxes on over there. But he said we might be able to deduct the amount of tax that she already paid in Japan on our 2013 taxes as well.

Has anyone else heard of this or had to do this when their spouse came to the US? Again, he's going to research more to find out for sure. But it looks like this what the IRS requires.

The last bit of research that will be useful -

is the resident alien filing the F2555 form with the tax return.

BOOM - lots of income waived, not to be taxed twice.

[Roosha 51]

Will the IRS ask for documents stating your income from the foreign country or do you just put down the numbers yourself?

Just put them yourself, you're not required to submit anything as proof.

I don't mean to derail the thread, but my husband works remotely, for a Russian company. How would be go about the taxes?

What do you mean remotely? Please start your own thread (so you can get more views on your question) and also provide more information, most importantly, where he considers his residence is, in the US or abroad?

[Darnell 8,479]

Yeah, that's what doesn't make sense to me. I would think once she becomes an LPR and if she continues to work there before moving here to live with me that income could be subject to tax.

Your uncle needs to do more research.

Also - you two want to file MFJ this year, for TY 2012? Yer allowed, you know..

[Jughead 3]

Your uncle needs to do more research.

Also - you two want to file MFJ this year, for TY 2012? Yer allowed, you know..

Yes. He's going to do more and get back to me.

We got married Jan 4, 2013. Since I wasn't married in 2012 I figured I can only file as single.

[christeen 966]

I concur with other posts... When hubby became LPR it was in November, we put his income (below the 92k threshold) on the tax return, and filed the form 2555 which basically minuses his foreign income.... So although you file the income, you will subtract it and thus not pay taxes unless the amount is over the 92k threshold.

[Darnell 8,479]

Yup, that's how it works !

[The Mean Lady 604]

Yes. He's going to do more and get back to me.

We got married Jan 4, 2013. Since I wasn't married in 2012 I figured I can only file as single.

yah youre single for 2012

[Grant PDX 183]

When you file taxes you look at your status on December 31 of the year and you use that as if it were the whole year. That's why people get married on December 31, so they can claim Married Filing Jointly for the whole year. If a baby is born on December 31, you claim the exemption the whole year. Since you are a US citizen, if you get married during the year to a foreign national, then yes you would claim the total family income, although the foreign income would likley be exempted.

By the same token, if you're married to a foreign national who has no income, and you do it before year end, even if they're not yet in the US yet, you get to claim them for the whole year and likely save money in taxes. It does go both ways.

[YpsiFella 20]

I actually went through this in 2006 and it was mostly as depicted here by others. When we moved I had a considerable income in Canada and I don't believe there was any threshold at the time. I would have exceeded the 92K by a fair amount. I had to claim world income for the US and because of the reciprocity agreement on taxes there was more tax paid in Canada than would have been in the US so it was a no-brainer - no tax payable.

EXCEPT - I did not have the same experience with the state. They made the claim that THEY had no such agreements with Canada regarding taxes and I was on the hook for $10,000 in state taxes. I had to appeal it before I got someone who agreed that although there is no reciprocity agreement between Canada and the state, that the state did not have any right to tax world income. I got my money back.

[Darnell 8,479]

Shenanigans.

I declare Shenanigans - as the OP got married in 2013 and won't be filing tax returns till 2014.

He's engaged his uncle during current tax season for nothing, to waste his time.

Shenanigans !!!!!

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Look - this is a non-critical issue at the moment - best to ask your Uncle again when it's NOT tax season.

[The Mean Lady 604]

Shenanigans.

I declare Shenanigans - as the OP got married in 2013 and won't be filing tax returns till 2014.

He's engaged his uncle during current tax season for nothing, to waste his time.

Shenanigans !!!!!

----

Look - this is a non-critical issue at the moment - best to ask your Uncle again when it's NOT tax season.

he stated in the initial post that it was in regards to 2013...

[ca1bear 7]

If it deals with the IRS, the immediate term of "OUCH" applies...

Anyways, if I read the information correctly, it applies to income earned while you are a U.S. Citizen or Legal Resident unless you file for an ITIN with the IRS and declare your income taxable by the U.S. and exempt from your host country. Of course, I am not a tax attorney and I am only speaking from second hand information, but this was the case for several foreign spouses married to military members I had known when I was serving in Europe (over 12 years).

Be careful though, Obama may have found a way to levy Social Security taxes against them and circumvent the entire IRS and Tax Return process anyways

[RicknKeiko 0]

I hope this helps... I just recieved a letter from the IRS on a correction to my tax return for 2012. I had originally filed Married filing joint, but my wife Is not here from Japan yet. If your spouse has not yet recieved a ss# or taxpayer ID # then she does not exsist as the IRS sees it. You will not be permitted an exemption for her, and you will be filing as single. So if she has an income it is irrelevant to the IRS unless she or he has a ss# OR TAXPAYER ID.

My tax man didnt even know this, as I claimed her on my taxes for 2012 and declared her income, to no avail.

Hope my trials with the IRS helps someone.....

[NikLR 13,234]

Yep claim married, filing separately then amend after your wife arrives and has an SSN.