Will I need my NRA Wife's income for taxes?

[joshuah57 14]

My wife got her CR-1 visa back in October. Due to school, she is first entering the USA on February 27th. We've been married since June of 2014. When I did the taxes for 2014, I just filed "married filing separately" and plan on amending the return when she gets here and gets a SS#. I might do the same with the 2015 return and just amend both taxes after we get her SS#.

My question is this: During this whole time, she has been a full time student in Germany. She did work a part time job for about half of 2014, but has just been doing practical since (she's going to school for nursing). She does make some money from the practical, but it is like 600 to 800 euros a month. I can guarantee she probably made less than 15,000 euros a year for the last two years. Does she need to get some document showing that income? Since her income is so low, should we bother to even claim it? Is there any specific document Germany has for this? Something like our W-2 form?

Thank you for your help in all this.

[Nich-Nick 3,353]

Are you asking about when you amend your taxes to file jointly? Yes you are required to report worldwide income on a joint tax return. Yours and hers, no matter how large or small adds together for Line 7 of the 1040. She will qualify for Form 2555 Foreign Income Exclusion. That will subtract our her income on Line 21 Other Income. (It is entered as a negative number.) So while it is reported, that does not mean it is taxed.

The IRS does not require any document (like a W2) with the tax return proving the foreign income. It is self-reported and you are trusted to be honest. Come up with the best estimate from payslips, bank deposits, or whatever.

Because your wife was a NRA alien in 2014, you are supposed to submit a statement electing for her to be treated as a resident alien for tax purposes so you can file a joint return. Look up Publication 519 on the IRS.GOV website. Page 9 tells about that and tells you how to write the statement.

It is possible that she could get here and get her SSN before the April 18 filing deadline this year. Much easier than amending 2015.

[joshuah57 14]

Thank you so much for your help. I understand much more of what I need to do. I will definitely wait till she is here and has her SSN before I amend 2014's return and then I will take care of 2015's return.

I have thought about having someone do our taxes for us, but I have no confidence in them here. I have asked a little about this at a few places and they all looked at me with blank looks. They really have no idea when it comes to foreign spouse or foreign income. It is surprising since there are many Mexicans and Hmong in my area that I am sure have had similar situations.

[Gitana 11]

All you will need is to fill form 2555 for your wife and it's pretty simple, there are instructions how to do it. And then you just transfer amount to you form 1040 as Nich-Nick sad in previous post. I downloaded a book Expat Guide to Taxes and it's explain with the sample there how to do it

[aaron2020 11,651]

My wife got her CR-1 visa back in October. Due to school, she is first entering the USA on February 27th. We've been married since June of 2014. When I did the taxes for 2014, I just filed "married filing separately" and plan on amending the return when she gets here and gets a SS#. I might do the same with the 2015 return and just amend both taxes after we get her SS#.

My question is this: During this whole time, she has been a full time student in Germany. She did work a part time job for about half of 2014, but has just been doing practical since (she's going to school for nursing). She does make some money from the practical, but it is like 600 to 800 euros a month. I can guarantee she probably made less than 15,000 euros a year for the last two years. Does she need to get some document showing that income? Since her income is so low, should we bother to even claim it? Is there any specific document Germany has for this? Something like our W-2 form?

Thank you for your help in all this.

Your wife was a NRA for 2014 and 2015. If she elects to file US tax returns for 2014 and 2015, then her worldwide income is counted. 600 to 800 Euro is hardly some money; 800 euros/month at the exchange rates back then means $15,000/year. It's unlikely that your tax liability will increase with this income when amending to file jointly.

Thank you so much for your help. I understand much more of what I need to do. I will definitely wait till she is here and has her SSN before I amend 2014's return and then I will take care of 2015's return.

I have thought about having someone do our taxes for us, but I have no confidence in them here. I have asked a little about this at a few places and they all looked at me with blank looks. They really have no idea when it comes to foreign spouse or foreign income. It is surprising since there are many Mexicans and Hmong in my area that I am sure have had similar situations.

You have no confidence in finding a professional, but you can muck your way through this? Don't go to H&R Block or Jackson Hewitt. Go to a real accountant.

Take this from a guy with an advanced tax degree. Don't mess with the IRS. Get a real accountant to do your taxes for those years. It will cost about $500 to $1000 for two tax returns. You will get that back in refunds.