First year filing taxes after K1

[Zoeeeeeee 795]

On 1/31/2020 at 10:43 AM, panamerican said:

We chose to claim her as a resident for all year in 2019 so I could do both standard deductions ($12,200 x 2) against my salary. Otherwise, we would not get that benefit. In order to claim her as a resident for the whole year, all worldwide income needs to be claimed.

Sorry to reopen this one! I've just been discussing this with my husband and he thinks I can't be claimed as a resident for the whole of 2019, as I only arrived in November (we got married in November too)...is this correct?

 

Cc @Wuozopo

[geowrian 22,335]

7 minutes ago, Zoeeeeeee said:

Sorry to reopen this one! I've just been discussing this with my husband and he thinks I can't be claimed as a resident for the whole of 2019, as I only arrived in November (we got married in November too)...is this correct?

 

Cc @Wuozopo

See: https://www.irs.gov/individuals/international-taxpayers/nonresident-alien-spouse

 

Edit: Also, the 1040 instructions: https://www.irs.gov/pub/irs-pdf/i1040gi.pdf

Quote

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 2019, you can elect to be treated as a resident alien and file a joint return. See Pub. 519 for details.

 

Edited February 13, 2020 by geowrian

[panamerican 35]

2 hours ago, geowrian said:

See: https://www.irs.gov/individuals/international-taxpayers/nonresident-alien-spouse

 

Edit: Also, the 1040 instructions: https://www.irs.gov/pub/irs-pdf/i1040gi.pdf

 

This is correct. You will have to send the special election statement as well. It was well worth the extra steps for us. We were married in October 2019.

[Wuozopo 4,285]

5 hours ago, Zoeeeeeee said:

Sorry to reopen this one! I've just been discussing this with my husband and he thinks I can't be claimed as a resident for the whole of 2019, as I only arrived in November (we got married in November too)...is this correct?

 

Cc @Wuozopo

Hey Zoe. I agree with the others. Submit the statement and you are subject to all the resident rules for the entire year. 

[Crazy Cat 39,206]

On 1/31/2020 at 9:31 PM, panamerican said:

This is better than any explanation I can offer. The point is that I can reduce my tax liability by $24,400 as opposed to $12,200 if we filed separate. She has no US income so that second standard deduction of $12,200 would not exist. I say this goes against 'my income' because she did not add anything to the joint income for 2019 therefore I get twice the benefit without any added tax liability. I believe if we filed separate, her income would have been so low that she wouldn't even need to file taxes.

 

Believe me, I learned a lot about taxes this time around. Before this year, I was so used to just tossing a W-2 and some student loan interest form in to H&R Block online and letting it go. It will definitely be worth your time to review this and understand it moving forward.

The standard deduction for joint filing for 2019 tax year is $25,700.  You reduced the taxable income by the amount of the standard deduction, not tax liability...just to be clear.

 

EDIT:  My mistake....That standard deduction is for an old person like me.....

Edited February 13, 2020 by missileman

[Wuozopo 4,285]

15 minutes ago, missileman said:

The standard deduction for joint filing for 2019 tax year is $25,700.  

Only if one of you is age 65+ Or blind.

 

[Crazy Cat 39,206]

5 minutes ago, Wuozopo said:

Only if one of you is age 65+ Or blind.

 

LOL.......Oh, yea.......you are correct..My mistake....I was looking at my return .I should have said MY standard deduction was $25,700.....I am an old codger......Thanks for reminding me......

Edited February 13, 2020 by missileman

[panamerican 35]

58 minutes ago, missileman said:

The standard deduction for joint filing for 2019 tax year is $25,700.  You reduced the taxable income by the amount of the standard deduction, not tax liability...just to be clear.

 

EDIT:  My mistake....That standard deduction is for an old person like me.....

Thanks for correcting my language with tax liability vs taxable income 😬

 

I swear they need to make this a required class in schools. Far too many adults like me that don't know enough about their own taxes.

[Crazy Cat 39,206]

2 minutes ago, panamerican said:

Thanks for correcting my language with tax liability vs taxable income 😬

 

I swear they need to make this a required class in schools. Far too many adults like me that don't know enough about their own taxes.

Then, when you add all the variables with first year immigrants, it can get very complex.........good thing, there are some experts here like @Wuozopo and @geowrian who are good teachers......

[Zoeeeeeee 795]

10 hours ago, geowrian said:

See: https://www.irs.gov/individuals/international-taxpayers/nonresident-alien-spouse

 

Edit: Also, the 1040 instructions: https://www.irs.gov/pub/irs-pdf/i1040gi.pdf

 

 

7 hours ago, panamerican said:

This is correct. You will have to send the special election statement as well. It was well worth the extra steps for us. We were married in October 2019.

 

5 hours ago, Wuozopo said:

Hey Zoe. I agree with the others. Submit the statement and you are subject to all the resident rules for the entire year. 

Fab, thank you gentlemen! I've sent him the IRS page to look at. I think his concern was that if an extra $12,200 is deducted from his tax, he'd end up being owed money from the tax office, rather than owing them money (personally, I'd be delighted to be in that predicament, but I'm from the UK, where our employers work out our tax for us and we don't have to worry about making mistakes!). 

 

He buys some fairly expensive equipment that he uses in his job, so claims for these, hence why he'd end up not owing...

[Wuozopo 4,285]

1 hour ago, Zoeeeeeee said:

 

 

Fab, thank you gentlemen! I've sent him the IRS page to look at. I think his concern was that if an extra $12,200 is deducted from his tax, he'd end up being owed money from the tax office, rather than owing them money (personally, I'd be delighted to be in that predicament, but I'm from the UK, where our employers work out our tax for us and we don't have to worry about making mistakes!). 

 

He buys some fairly expensive equipment that he uses in his job, so claims for these, hence why he'd end up not owing...

When you read the tax forms, there’s always the “Enter the lower number, but not less than zero” bits which means you can’t owe -$2000. They stop you at zero. And the standard deduction comes off his income, not the actual tax. 

[K + M 47]

Update about our taxes:  Got all of our tax paperwork submitted with our tax guy, decided to go with a CPA in the city near us.  Told him all about our situation, fairly straightforward, should be done in a couple weeks for us to have the MFJ tax return to take with us to the interview, just have to get him the written statement that the wife wants to be treated as RA not NRA for tax year 2019 because married to USC at end 2019.  Made 100% sure he knew he can't e-file since we have to mail in that statement attached to the 1040.  Figured out with foreign income using HMRC site by adding the last years tax income portion Jan-April, and this years tax income portion April - May (she came to USA May 2019), and got her income for the 2555.   - next step Green Card Interview on March 10th!

 

Little bit of a fun fact - the CPA was really surprised when I said my wife has her SSN lol, having the great community of VJ for guidance is amazing.

Edited February 13, 2020 by Kerri and Myles

[panamerican 35]

On 2/13/2020 at 6:31 PM, Kerri and Myles said:

Update about our taxes:  Got all of our tax paperwork submitted with our tax guy, decided to go with a CPA in the city near us.  Told him all about our situation, fairly straightforward, should be done in a couple weeks for us to have the MFJ tax return to take with us to the interview, just have to get him the written statement that the wife wants to be treated as RA not NRA for tax year 2019 because married to USC at end 2019.  Made 100% sure he knew he can't e-file since we have to mail in that statement attached to the 1040.  Figured out with foreign income using HMRC site by adding the last years tax income portion Jan-April, and this years tax income portion April - May (she came to USA May 2019), and got her income for the 2555.   - next step Green Card Interview on March 10th!

 

Little bit of a fun fact - the CPA was really surprised when I said my wife has her SSN lol, having the great community of VJ for guidance is amazing.

When we had our meeting, she was surprised as well that we didn't need to get an ITIN. I agree, nice that we have such a solid resource here. I would have been screwed without it.

[Zoeeeeeee 795]

@Meg101