New LPR, how to file taxes

[Ellinora 72]

So husband and I moved to the U.S last October, when I became a LPR through IR-1. We both have foreign earned income from the whole year and husband has income from the U.S as well.

We first moved to one state in October, where neither of us worked and then to Maryland in December, where husband earned income. A couple of questions:

I know my husband has to file taxes, but do I have to since I have not earned anything in the U.S since I moved here? I won't earn anything in the U.S this year either, not that that matters for this filing.

I did, however, get paid in Finland for the whole year. If I do have to file taxes, do I only mention what I've earned in Finland since October or for the whole year? I did earn way more than $3950 during those three months.

Should we file jointly or married filing separately? Husband thinks if we file jointly and then take my foreign earned income into consideration, we'll have to pay more taxes.

Any help is much appreciated! If these have been answered elsewhere, please direct me to the right thread thanks.

[Nich-Nick 3,353]

You had no US income so you are not required to file. Your husband can file married filing separately and report all of his income earned in 2014. That includes US and foreign Income.

You can also file jointly and your husband will probably have less tax obligation, however only working in the US for a month, it is probably not going to be that significant either way. It is a more significan difference when the US person has a high income and gets to take the extra exemption and standard deduction for a spouse.Your foreign income from Jan1 to Dec 31 would have to be reported of you file jointly.

The thing you may not know about is Form 2555 or the easier 2555EZ which allows you the foreign income exclusion. Each of you could do the form to exclude your foreign incomes. Or he could do it on a married filing separately return.

All the worldwide income on a joint return will be on Form 1040's Line 7....his, yours, foreign and US. The foreign exclusion will be on Line 21 as a negative number, and subtracted out before Lime 22 Total Income.

Work the tax returns both ways-- Him married Filimg Separately or both Married Filing Jointly. Go with the one that has less taxes.

Edited March 22, 2015 by Nich-Nick

[Ellinora 72]

You had no US income so you are not required to file. Your husband can file married filing separately and report all of his income earned in 2014. That includes US and foreign Income.

You can also file jointly and your husband will probably have less tax obligation, however only working in the US for a month, it is probably not going to be that significant either way. It is a more significan difference when the US person has a high income and gets to take the extra exemption and standard deduction for a spouse.Your foreign income from Jan1 to Dec 31 would have to be reported of you file jointly.

The thing you may not know about is Form 2555 or the easier 2555EZ which allows you the foreign income exclusion. Each of you could do the form to exclude your foreign incomes. Or he could do it on a married filing separately return.

All the worldwide income on a joint return will be on Form 1040's Line 7....his, yours, foreign and US. The foreign exclusion will be on Line 21 as a negative number, and subtracted out before Lime 22 Total Income.

Work the tax returns both ways-- Him married Filimg Separately or both Married Filing Jointly. Go with the one that has less taxes.

Thank you sooo much for the answer! Do you think I should still file the Finnish foreign earned income with the 2555, if we file separately?

Can we file jointly next year, if we file separately this year? Are there any regulations on that?

[Nich-Nick 3,353]

Thank you sooo much for the answer! Do you think I should still file the Finnish foreign earned income with the 2555, if we file separately?

Can we file jointly next year, if we file separately this year? Are there any regulations on that?

There is really no reason for you to file anything for 2014 unless it it a tax advantage to be added as a joint filer on your husband's return. Normally joint always turns out better, but I am thinking in his situation of only a month of US income for him, his taxable income will probably be zero unless he earned more than the standard deduction of $6200 in that one month. Filing with you and getting a $12,400 standard deduction is still going to be zero taxable income and extra paper work for no tax advantage. You can't go lower than zero. If he had earned $30,000 and you nothing in US income, you can see the advantage of reducing $30,000 income by $12,400 instead of $6,200.

You may file jointly in the future or switch back and forth. There are some regulations about if one files separately, the other has to do similar things. Example, if one itemizes deductions, the other must itemize also instead of taking the standard deduction. But there is no regulation that locks you into a filing status year after year.

[Ellinora 72]

There is really no reason for you to file anything for 2014 unless it it a tax advantage to be added as a joint filer on your husband's return. Normally joint always turns out better, but I am thinking in his situation of only a month of US income for him, his taxable income will probably be zero unless he earned more than the standard deduction of $6200 in that one month. Filing with you and getting a $12,400 standard deduction is still going to be zero taxable income and extra paper work for no tax advantage. You can't go lower than zero. If he had earned $30,000 and you nothing in US income, you can see the advantage of reducing $30,000 income by $12,400 instead of $6,200.

You may file jointly in the future or switch back and forth. There are some regulations about if one files separately, the other has to do similar things. Example, if one itemizes deductions, the other must itemize also instead of taking the standard deduction. But there is no regulation that locks you into a filing status year after year.

Thank you so very much for your help, I really appreciate it!