Tax Question

[KJ2 230]

Hello!

 

Just had a bad experience at HR Block trying to file taxes.  My husband has a GC valid as of 6/15/19.  He did make some (small) income in his country of residence prior, but they don’t really do taxes there and there is no documentation of anything related to income.

 

HR Block told us we had to claim money he earned before we attended our visa interview, but that seems inaccurate to me because why would we pay US taxes on money earned abroad before he was even a visa holder and permitted to enter the USA?  I don’t see why we’d have to  claim anything that he made unless it was after the date of US entry.

 

Thank you 

[payxibka 10,044]

3 minutes ago, KJ2 said:

Hello!

 

Just had a bad experience at HR Block trying to file taxes.  My husband has a GC valid as of 6/15/19.  He did make some (small) income in his country of residence prior, but they don’t really do taxes there and there is no documentation of anything related to income.

 

HR Block told us we had to claim money he earned before we attended our visa interview, but that seems inaccurate to me because why would we pay US taxes on money earned abroad before he was even a visa holder and permitted to enter the USA?  I don’t see why we’d have to  claim anything that he made unless it was after the date of US entry.

 

Thank you 

There is an entire tax forum which is the best place for these questions 

 

To file MFJ requires inclusion of world wide income 

Edited March 21, 2020 by payxibka

[Crazy Cat 39,227]

10 minutes ago, KJ2 said:

Hello!

 

Just had a bad experience at HR Block trying to file taxes.  My husband has a GC valid as of 6/15/19.  He did make some (small) income in his country of residence prior, but they don’t really do taxes there and there is no documentation of anything related to income.

 

HR Block told us we had to claim money he earned before we attended our visa interview, but that seems inaccurate to me because why would we pay US taxes on money earned abroad before he was even a visa holder and permitted to enter the USA?  I don’t see why we’d have to  claim anything that he made unless it was after the date of US entry.

 

Thank you 

You are incorrect......if filing a joint return, world-wide income for the entire year must be reported.  That is the law.... There are multiple tax strategies for a person entering the US the first year.  It is possible to file separately.  He could then be classified as a dual status alien.......then report only income from US sources.  A competent tax pro will calculate both ways to determine best strategy. 

***Moved to Tax and Finances During US Immigration discussion area***

Edited March 21, 2020 by Lucky Cat

[KJ2 230]

30 minutes ago, Lucky Cat said:

You are incorrect......if filing a joint return, world-wide income for the entire year must be reported.  That is the law.... There are multiple tax strategies for a person entering the US the first year.  It is possible to file separately.  He could then be classified as a dual status alien.......then report only income from US sources.  A competent tax pro will calculate both ways to determine best strategy. 

***Moved to Tax and Finances During US Immigration discussion area***

Then what do we do if the income is not documented? We have no forms or any proof from the foreign country as their pay system is nothing like the USA, nor can we obtain anything from them stating he was paid.  

[payxibka 10,044]

5 minutes ago, KJ2 said:

Then what do we do if the income is not documented? We have no forms or any proof from the foreign country as their pay system is nothing like the USA, nor can we obtain anything from them stating he was paid.  

You don't need "proof"  you file the appropriate form with the information you have 

[Just Paul 4,591]

4 minutes ago, KJ2 said:

Then what do we do if the income is not documented? We have no forms or any proof from the foreign country as their pay system is nothing like the USA, nor can we obtain anything from them stating he was paid.  

What issue are you trying to resolve?

 

The first year offers lots of options.

 

If he has cash income they can list that as foreign income if you are filing MFJ.  If filing MFS the income doesn't really matter.   If he doesn't have any US income then in a MFS situation he doesn't have to file.

 

It is fine to just have one tax return at ROC.

 

[KJ2 230]

9 minutes ago, Paul & Mary said:

What issue are you trying to resolve?

 

The first year offers lots of options.

 

If he has cash income they can list that as foreign income if you are filing MFJ.  If filing MFS the income doesn't really matter.   If he doesn't have any US income then in a MFS situation he doesn't have to file.

 

It is fine to just have one tax return at ROC.

 

He lives here with me now. Before he entered the USA he earned cash in his country, but we have no documented proof of earnings. Wasn’t sure if I needed a W2 or 1099 to claim that income or if I can just write in an estimated amount because there is no official documentation of his foreign earnings before he entered the USA. 

[Just Paul 4,591]

3 minutes ago, KJ2 said:

He lives here with me now. Before he entered the USA he earned cash in his country, but we have no documented proof of earnings. Wasn’t sure if I needed a W2 or 1099 to claim that income or if I can just write in an estimated amount because there is no official documentation of his foreign earnings before he entered the USA. 

Just estimate that amount.  Sounds like you are trying to file Married Filing Jointly.

[Wuozopo 4,285]

33 minutes ago, KJ2 said:

He lives here with me now. Before he entered the USA he earned cash in his country, but we have no documented proof of earnings. Wasn’t sure if I needed a W2 or 1099 to claim that income or if I can just write in an estimated amount because there is no official documentation of his foreign earnings before he entered the USA. 

The IRS does not require paper documentation. The tax form has a place to enter foreign earned income. You could pick something out of the air and the IRS would be none the wiser.  If H&R requires something, then that’s just their personal business rule. Nothing is submitted with the tax return. It’s almost like the honor system to tell the truth. The fact that you report anything sorta indicates you are being honest. 

Edited March 21, 2020 by Wuozopo