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sremlif

Wrong advice received from tax preparer regarding filing?

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Hello

 

My spouse (US Citizen) and I (beneficiary currently pending AOS) visited a tax preparer today in NYC regarding filing for 2018 and I feel we may have been given incorrect advice regarding my situation.

 

For reference, I arrived in the USA on July 26, 2018 and understand I am classed as a resident under the IRS substantial presence test for tax purposes. Prior to this I was in full-time employment in the UK, throughout 2018, but resigned once I left to migrate to the US on my K1 visa

 

When meeting with the tax preparer, I brought along my P45 documents from my previous job in the UK. They glanced over it before stating that I would not need to declare any foreign income as only US citizens need to do this. I mentioned the substantial presence test and they said I hadn't earned any income in the US to declare, so wasn't necessary for the purpose of filing my US taxes.

 

At this point I was pretty confused as their advice went against everything I read/heard elsewhere, so I thanked them and left. Is there any truth to what they have said, or should I begin looking for another tax preparer that has experience dealing with K1 immigrants / foreign income?

Edited by sremlif

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You are on point. Your world wide income is subjected to tax in the US.  Kindly send me a direct message for further direction. 

 

https://www.irs.gov/businesses/income-from-abroad-is-taxable

Edited by Ras Ous
To add a website

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Depends on how you are filing.

 

If you file Married Filing Jointly (MFJ), then you must be considered a resident alien (RA) for the entire tax year. Since you are not one for the entire year but are the spouse of a USC, you can elect to be treated as one for the entire year.

Resident Aliens are required to report worldwide income. The FEIE and/or FTC can exclude most to all of this foreign income from being taxed.

 

Edit: It sounds like the advice you received was for a dual status alien. They only need to declare income since becoming a resident alien. However, this does not permit filing MFJ (unless you elect to be treated as an RA...but again then needing to report worldwide income for the entire year).

 

11 minutes ago, The Rock ll said:

They r Right...if u r not US citizen then u only declare your US income...overseas income has nothing to do with IRS ...if u worked here in US and got paid either W-2 or 1099..then u should declare it...

Incorrect. Any "US person" must declare worldwide income.

A US person is any US citizen, legal permanent resident (LPR), or other resident alien.

Edited by geowrian

Timelines:

Spoiler

AOS (I-485 + I-131 + I-765):

9/25/17: sent forms to Chicago

9/27/17: received by USCIS

10/4/17: NOA1 electronic notification received

10/10/17: NOA1 hard copy received. Social Security card being issued in married name (3rd attempt!)

10/14/17: Biometrics appointment notice received

10/25/17: Biometrics

1/2/18: EAD + AP approved (no website update)

1/5/18: EAD + AP mailed

1/8/18: EAD + AP approval notice hardcopies received

1/10/18: EAD + AP received

9/5/18: Interview scheduled notice

10/17/18: Interview

10/24/18: Green card produced notice

10/25/18: Formal approval

10/31/18: Green card received

 

K-1:

Spoiler

I-129F

12/1/17: sent

12/14/17: NOA1 hard copy received

3/10/17: RFE (IMB verification)

3/22/17: RFE response received

3/24/17: Approved!

3/30/17: NOA2 hard copy received

 

NVC

4/6/2017: Received

4/12/2017: Sent to Riyadh embassy

4/16/2017: Case received at Riyadh embassy

4/21/2017: Request case transfer to Manila, approved 4/24/2017

 

K-1

5/1/2017: Case received by Manila (1 week embassy transfer??? Lucky~)

7/13/2017: Interview: APPROVED!!!

7/19/2017: Visa in hand

8/15/2017: POE

 

 

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1040 instructions (https://www.irs.gov/pub/irs-pdf/i1040gi.pdf, page 15):

"Nonresident aliens and dual-status aliens.

Generally, a married couple can't file a joint return if either spouse is a nonresident alien at any time during the year. However, if you were a nonresident alien or a dual-status alien and were married to a U.S. citizen or resident alien at the end of 2018, you can elect to be treated as a resident alien and file a joint return. See Pub. 519 for details."


Timelines:

Spoiler

AOS (I-485 + I-131 + I-765):

9/25/17: sent forms to Chicago

9/27/17: received by USCIS

10/4/17: NOA1 electronic notification received

10/10/17: NOA1 hard copy received. Social Security card being issued in married name (3rd attempt!)

10/14/17: Biometrics appointment notice received

10/25/17: Biometrics

1/2/18: EAD + AP approved (no website update)

1/5/18: EAD + AP mailed

1/8/18: EAD + AP approval notice hardcopies received

1/10/18: EAD + AP received

9/5/18: Interview scheduled notice

10/17/18: Interview

10/24/18: Green card produced notice

10/25/18: Formal approval

10/31/18: Green card received

 

K-1:

Spoiler

I-129F

12/1/17: sent

12/14/17: NOA1 hard copy received

3/10/17: RFE (IMB verification)

3/22/17: RFE response received

3/24/17: Approved!

3/30/17: NOA2 hard copy received

 

NVC

4/6/2017: Received

4/12/2017: Sent to Riyadh embassy

4/16/2017: Case received at Riyadh embassy

4/21/2017: Request case transfer to Manila, approved 4/24/2017

 

K-1

5/1/2017: Case received by Manila (1 week embassy transfer??? Lucky~)

7/13/2017: Interview: APPROVED!!!

7/19/2017: Visa in hand

8/15/2017: POE

 

 

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29 minutes ago, The Rock ll said:

They r Right...if u r not US citizen then u only declare your US income...overseas income has nothing to do with IRS ...if u worked here in US and got paid either W-2 or 1099..then u should declare it...

Nope....That is not accurate at all.  


"Experience can be a tough teacher to those who fail to heed good advice"- Missileman, 12/6/18

"Only a fool would fail to heed the advice of someone who has walked in his shoes"- Missileman, 2/8/19

"What I am to be, I am NOW becoming"- Benjamin Franklin

First career- 20 year Retired E-8, USAF Missileer,

Second career-Retired Registered Nurse, experience in Labor& Delivery, Home Health, Adolescent & Adult Psych

Third career-Retired IT Developer & Database Administrator for surgical services dept.

 

Immigration Journey:

  • Texas Service Center after transfer from Nebraska
  • Consulate :Taipei, Taiwan
  • Marriage: 7/30/2015
  • I-130 NOA1 : 4/27/2016
  • I-130 Approved :9/8/2016
  • Case received at NVC: 10/11/2016                               
  • Case # and IIN#: 10/24/2016
  • AOS Fee Invoiced:10/24/2016  
  • AOS Fee Paid:10/25/2016
  • IV Fee Invoiced:10/24/2016  
  • IV Fee Paid:10/25/2016
  • DS-260 Completed: 10/28/16
  • Scan Date:11/9/2016
  • Supervisor review: 12/21/16 
  • Checklist: 1/13/17 
  • Case Complete: 4/10/17
  • Interview Date: 5/8/17 
  • Visa  "ISSUED": 5/10/17
  • Visa and Passport in hand/Flight to USA Booked!!!: 5/12/17  
  • POE Dallas DFW on June 22, 2017
  • SS Card received : 7/3/2017
  • 2-year Green Card received in mail: 7/15/17
 

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33 minutes ago, geowrian said:

It sounds like the advice you received was for a dual status alien. They only need to declare income since becoming a resident alien. However, this does not permit filing MFJ (unless you elect to be treated as an RA...but again then needing to report worldwide income for the entire year).

BINGO!!!!   That was exactly my wife's situation when she arrived in 2017.  Our excellent accountant advised her to report only what foreign income she produced after her arrival via a CR-1.........My wife was a dual status resident for tax year 2017. ...and we filed MFS.    However, for tax year 2018, we are reporting her income for the entire year, and we are filing joint............. (Thank goodness for the increased standard deductions allowance for 2018...LOL).

 

Note:  My accountant is accepting new clients for tax preparation....

Edited by missileman

"Experience can be a tough teacher to those who fail to heed good advice"- Missileman, 12/6/18

"Only a fool would fail to heed the advice of someone who has walked in his shoes"- Missileman, 2/8/19

"What I am to be, I am NOW becoming"- Benjamin Franklin

First career- 20 year Retired E-8, USAF Missileer,

Second career-Retired Registered Nurse, experience in Labor& Delivery, Home Health, Adolescent & Adult Psych

Third career-Retired IT Developer & Database Administrator for surgical services dept.

 

Immigration Journey:

  • Texas Service Center after transfer from Nebraska
  • Consulate :Taipei, Taiwan
  • Marriage: 7/30/2015
  • I-130 NOA1 : 4/27/2016
  • I-130 Approved :9/8/2016
  • Case received at NVC: 10/11/2016                               
  • Case # and IIN#: 10/24/2016
  • AOS Fee Invoiced:10/24/2016  
  • AOS Fee Paid:10/25/2016
  • IV Fee Invoiced:10/24/2016  
  • IV Fee Paid:10/25/2016
  • DS-260 Completed: 10/28/16
  • Scan Date:11/9/2016
  • Supervisor review: 12/21/16 
  • Checklist: 1/13/17 
  • Case Complete: 4/10/17
  • Interview Date: 5/8/17 
  • Visa  "ISSUED": 5/10/17
  • Visa and Passport in hand/Flight to USA Booked!!!: 5/12/17  
  • POE Dallas DFW on June 22, 2017
  • SS Card received : 7/3/2017
  • 2-year Green Card received in mail: 7/15/17
 

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