Taxes - help! help!

[PoohBear72 22]

Hi Everyone,

I am a UK citizen married to a US citizen as of July 2013. My wife and I completed an I-130 petition in August 2013. It's going to take a little while to come around to our turn to be processed and my wife needs to file her US tax return for 2013 in the mean time.

I am currently unemployed with no income since July of 2013 when my job was made redundant. The I-130 is in the Initial Review stage. As a Non-resident Alien who has never earned a US based income do I need to file a tax return for 2013? I don't meet the substantive stay requirements but I have been in the US for greater than 31 days once in 2013.

I am pretty confused at this point but my questions are:

1. As a spouse of a US citizen, do I need to file a US tax return for 2013?

2. Everywhere I look it mentions "Those who need to file a tax return" how do I know I am one of those who needs to?

3. Would my wife be able to file a joint tax return?

4. In the document http://www.irs.gov/pub/irs-pdf/iw7.pdf on page 4, section e it says:

e. Spouse of a U.S. citizen/resident alien. This category includes:

A resident or nonresident alien spouse who is not filing a U.S.

tax return (including a joint return) and who is not eligible to get a

SSN but who, as a spouse, is claimed as an exemption, and

A resident or nonresident alien electing to file a U.S. tax return

jointly with a spouse who is a U.S. citizen or resident alien.

Does the "(Including a joint return)" mean that I need to complete a joint return with my wife? or that I don't have to file a US tax return at all?

Thanks for reading.

Poohbear72

[Nich-Nick 3,353]

You don't live in the US. You were only a visitor. You earned no US income. You have no obligation to file.

Your wife can file her taxes "Married Filimg Separately".

Optional--

She may file a joint tax return with you... "Married Filing Jointly"

Things that must be done to file jointly with you:

1) Each sign a statement electing for you to be treated as a resident alien for tax purposes. Details of that written election are on page 9 or 10 of IRS publication 519.

2) Get an ITIN (Individual Taxpayer Identification Number) for you. No number, then no joint filing. Easiest way is mail your passport to her. She goes to an IRS Taxpayer Assistance Center with the completed tax return (your signature must be on it) and your ITIN application. They verify your identity with the passport and hand it back to her. They forward the tax return and ITIN application on for processing. She mails back your passport to you. Alternatively that can all be done by mail by sending all of the above to an Austin, TX IRS address that does ITIN with tax returns, Problem is your passport is floating around for god knows how long before they mail it back from Austin. There are other ways to prove your identity but not that easy.

3) Include your UK income from Jan 1 until you quit working on the joint return. Worldwide income of both spouses must be included. There is a foreign income exclusion form 2555EZ to include with the tax return that excludes the taxes your income would normally generate.

Believe it or not, usually a joint return is an advantage over Married Filing Separately. She should do it both ways to see if there is indeed a money advantage and if it is enough to warrant jumping through all those hoops to file jointly.

[PoohBear72 22]

Nich-Nick

Thanks for such a full response. Can I ask a couple of questions to clarify my understanding of what you have said?

1. So from what you are saying, even though my wife might file as "Married filing seperately" this very fact doesn't create the obligation upon me to file a tax return myself?

2. My belief that being Married to her meant that I needed to file a US Tax return was incorrect?

Thanks

[Nich-Nick 3,353]

You have no tax obligation until you live and/or work in the US. Even when you move to the US, there is a threshhold amount of US income anybody (even Americans) has to earn before being required to file. As long as you are below that, you wouldn't have file unless you chose to file jointly or if you had a small income but taxes were withheld by the employer. The only way to get that returned is to file.

Married people can choose to file jointly, even if only one has income. Or the wage earner can file Married Filing Separately and the non wage earner can file nothing. Filing Jointly is usually the better "deal" over married separately, but that depends on each family's tax situation.

If she files MFS, your name and Social Security (or ITIN) will be requested on the return for informational purposes. If you are a non-resident and have neither, the form 1040 instructions say to put NRA instead. That stands for non-resident alien.

Instructions under Married Filing Separately

Be sure to enter your spouse's SSN or ITIN on Form 1040. If your spouse does not have and is not required to have an SSN or ITIN, enter NRA.

Edited January 22, 2014 by Nich-Nick

[PoohBear72 22]

Can I ask a slightly different question?

I have sold my home with a profit of less than 10,000 after estate agency and solicitor fees. It is likely that I will become a Conditional Resident this year.

Do I need any paperwork to show that I sold my house and the amount of the proceeds for tax purposes? (Evidence)

For my first tax return if I filed Married filing separately will I need to declare the sale of my house on my tax return as I would If I filed Married Filing Jointly? Or does my tax year begin when my visa is approved?

Thanks.

[teddy k 35]

Hi i just went thru the same problem with my wife whom i married on dec 24th in the philippines, first she have to fill out a W-7 form from the irs then mail it back to you since it takes like 3 months to process now thats its tax time then when you get the ITIN# SEND YOUR TAXES IN, if you owe request an extention, your wife does not have to file since she did not work in the states, make sure she sends you a copy of her passport for ID.

Hi i just went thru the same problem with my wife whom i married on dec 24th in the philippines, first she have to fill out a W-7 form from the irs then mail it back to you since it takes like 3 months to process now thats its tax time then when you get the ITIN# SEND YOUR TAXES IN, if you owe request an extention, your wife does not have to file since she did not work in the states, make sure she sends you a copy of her passport for ID.

file joint return less taxes

[Ontarkie 13,941]

~~Moved to Tax & Finances During US Immigration, from IR-1 / CR-1 Spouse Visa Process & Procedures~~

[ferricide 3]

Hi, just wanted to pop in and say -- this thread (in particular, though among others) has beautifully answered vital questions I've had about the tax process. And, Nich-Nick, you are an invaluable resource to the community. Thank you.

[CarlosAndSveta 808]

Can I ask a slightly different question?

I have sold my home with a profit of less than 10,000 after estate agency and solicitor fees. It is likely that I will become a Conditional Resident this year.

Do I need any paperwork to show that I sold my house and the amount of the proceeds for tax purposes? (Evidence)

For my first tax return if I filed Married filing separately will I need to declare the sale of my house on my tax return as I would If I filed Married Filing Jointly? Or does my tax year begin when my visa is approved?

Thanks.

You don’t need to report the sale of your residence for U. S. tax purposes. You can exclude up to $250,000 of gain on the sale of your residence, $500,000 of gain on a joint return. See IRS Publication 523 – Selling Your Home for a more detailed explanation.