2017 Taxes as K1 in Adjustment

[Elethiomel 85]

So.. I've a fairly simple situation which is that I planned to opt to be a resident for tax purposes for 2017 since I had no foreign income and it's more logical for us to file jointly.

 

I entered on a K1 on August 18, Married October 6 (49 days after entry) and until my marriage was only on UK based travel insurance for those 49 days.. this travel insurance probably isn't ACA compliant.

 

If I'm a resident alien for the whole year for tax purposes does this mean I'm going to incur the individual mandate penalty for all the months before we married? Even though I was outside the US till August?

[karice 29]

It depends. When you got married, did your spouse put you on their insurance, and do you have any coverage now?

 

Im unaware of whether or not they could penalize you prior to your holding a green card, but I was advised at my K1 and AOS interviews to get of American insurance as soon as I was married. 

[GreatDane 366]

44 minutes ago, Elethiomel said:

So.. I've a fairly simple situation which is that I planned to opt to be a resident for tax purposes for 2017 since I had no foreign income and it's more logical for us to file jointly.

 

I entered on a K1 on August 18, Married October 6 (49 days after entry) and until my marriage was only on UK based travel insurance for those 49 days.. this travel insurance probably isn't ACA compliant.

 

If I'm a resident alien for the whole year for tax purposes does this mean I'm going to incur the individual mandate penalty for all the months before we married? Even though I was outside the US till August?

I remember having the same issue and asked the accountant - there wasn't a fine or anything.

 

"All U.S. citizens living in the United States are subject to the individual shared responsibility provision as are all permanent residents and all foreign nationals who are in the United States long enough during a calendar year to qualify as resident aliens for tax purposes. This category includes nonresident aliens who meet certain presence requirements and elect to be treated as resident aliens. For more information see Pub. 519. 

Foreign nationals who live in the United States for a short enough period of time that they do not become resident aliens for federal income tax purposes are exempt from the individual shared responsibility payment even though they may have to file a U.S. income tax return. The IRS has more information available on when a foreign national becomes a resident alien for federal income tax purposes. Individuals who are exempt under this rule include:

• Nonresident aliens;
• Dual-status aliens in their first year of U.S. residency;
• Nonresident aliens or dual-status aliens who elect to file a joint return with a U.S. spouse;
• Individuals who file a Form 1040NR or Form 1040NR-EZ (including a dual-status tax return for their last year of U.S. residency); and
• Individuals who are claimed as a personal exemption on a Form 1040NR or Form 1040NR-EZ."

 

 

[JoannaV 173]

I *think* that for the months before you came to America you would put the exemption code C (which applies to various kinds of citizens living abroad and noncitizens, including dual-status aliens in the first year of residency). Then you had a short gap of coverage which is less than 3 months so comes under exemption code B. (If you had coverage for even one day in October you are considered covered for that month.) I'm assuming you can use the short gap exemption if your previous non-covered months were exempt, but I might be wrong on that. ;-) I'd guess the tax software would know though, in that it'll either let you use B after C or won't!

[Elethiomel 85]

6 hours ago, karice said:

It depends. When you got married, did your spouse put you on their insurance, and do you have any coverage now?

 

Im unaware of whether or not they could penalize you prior to your holding a green card, but I was advised at my K1 and AOS interviews to get of American insurance as soon as I was married. 

I've been on my wife's work based insurance since the wedding day and continue to be.

[karice 29]

2 hours ago, Elethiomel said:

I've been on my wife's work based insurance since the wedding day and continue to be.

Then you should be fine

[Elethiomel 85]

My one issue is I was planning to file as a US Resident by electing to do so. 

 

Myunderstanding is that if we used married filing separately (which we have to do if I chose to be considered a dual status alien) my wife couldn't claim our standard deduction?

 

Exemption C "This exemption doesn't apply if you are a nonresident alien for 2017, but met certain presence 
requirements and elected to be treated as a resident alien. " (From the form filling instructions for tax form 8965 which is where you put instructions)

 

 

[Italian_in_NYC 259]

12 hours ago, Elethiomel said:

So.. I've a fairly simple situation which is that I planned to opt to be a resident for tax purposes for 2017 since I had no foreign income and it's more logical for us to file jointly.

 

I entered on a K1 on August 18, Married October 6 (49 days after entry) and until my marriage was only on UK based travel insurance for those 49 days.. this travel insurance probably isn't ACA compliant.

 

If I'm a resident alien for the whole year for tax purposes does this mean I'm going to incur the individual mandate penalty for all the months before we married? Even though I was outside the US till August?

No, you are fine till you were abroad. Then you have a grace period of (I think) 3 months.

On top of that, do not worry. The IRS de facto does not enforce this and even if they wanted to, they are grossly understaffed.

[Elethiomel 85]

Just one more question (sorry for asking so many!)

 

If I was physically present for the US for around 200 days last year (which I was due to visiting twice for over a month before I got my K1 visa, I did not visit the US in 2016 or 2015) 

 

Since (I think) substantial presence test then classifies me as a resident, could I efile rather than needing to send in a declaration?