Tax filing status/witholding question for newlyweds

[pushbrk 13,066]

How I should handle the W-4 at my workplace?

I just had open enrollment and I used this opportunity to add my wife to my medical/dental/vision coverages and added some more head room to my FSA for anticipated added costs once she is here later this year (by April 2008 I hope). For those wondering, I did this now even though marriage usually allows for these changes anytime because the evidence for it would get a bit complicated as the marriage was technically in March 2007.

Anyways, should I change my W-4 now? As I definitely am taking on more deductions now with a dependent (my wife) added to my medical/dental/vision.

Or should I just allow the Tax Filing handle this? Eventually I should change my W-4 though correct? When is the question... now or later. Perhaps others have their thoughts on this. Thanks a bunch.

Any thoughts on my W-4 related question?

I see this as purely a personal choice. My philosophy is I'd rather pay a little than get a lot back. If you don't adjust the W4, you'll be letting the IRS use more of your money than if you do.

[JenAlex 0]

US Residents for tax purposes are still allowed to exempt foreign income from US taxes up to the exclusion amount. This amount can vary by tax year, for 2007, that amount is $85,700. You claim that exclusion by filing form 2555 along with the 1040. So again, the decision to declare a spouse a US resident for tax purposes for tax year 2007 is an individual decision based on individual circumstances of income of both spouses.

This may be a dumb question but I really do need the answer. Is the $85,700 our combined income or just his foreign income?

[pushbrk 13,066]

US Residents for tax purposes are still allowed to exempt foreign income from US taxes up to the exclusion amount. This amount can vary by tax year, for 2007, that amount is $85,700. You claim that exclusion by filing form 2555 along with the 1040. So again, the decision to declare a spouse a US resident for tax purposes for tax year 2007 is an individual decision based on individual circumstances of income of both spouses.

This may be a dumb question but I really do need the answer. Is the $85,700 our combined income or just his foreign income?

$85,700 of foreign income is exempt from US income tax. Additional foreign income is taxed. Domestic income is taxed.

[JenAlex 0]

Thank you!

[bleowheels 0]

It sounds really simple until you start thinking about how you are going to include a US Notary's signature attesting to the fact that the passport copy is a true one.

Per the instructions to the W7:

U.S. notaries public are available at U.S. embassies and consulates worldwide. Foreign notaries are acceptable as outlined by the Hague Convention.

I don't know about how one would utilize a foreign notary but at least in China, the services of a US notary in an Embassy or Consulate are only available to US Citizens. So, it's not like my wife could have walked in and gotten it done. The distance was too great anyway.

There are also IRS offices in some countries. The passport can be authenticated there as well.

For some, the available options will be practical. For others, not so much. I'm just saying it sounds simple until you start dealing with the passport copy issue.

We went through a week and many dollars to do this while wife was still in China..We had to take her passport to a Chinese Notary to have a booklet made in Chinese and English, then (I) had to take all this to the GZ consulate to have a page added and another US notary added their stamp to the booklet..True she can't have an american consulate put a notary seal..Maybe it's different in other countries but in China thats how we had to do it..Hes right it's simple until you deal with it..Even with all that done proper and legal the IRS would not accept it for the year 2006..They simply said you need to call us beforehand..Rules change all the time they told us, don't take printed pages as religion not even on their website..So says IRS..

I have a few questions that are related as well. My wife is a Canadian citizen. She is originally Chinese but has been a Canadian citizen for just over 1 year. We filed our case in November 2007. I sent in our I-130 and we are still waiting for our receipt. As it is getting close to tax time, I am getting nervous. My W-4 status is married. My wife has not worked in a year and a half. Currently, she is China. Our son was born three weeks ago. I just returned last week. However, my wife will not return to Canada for several months. My first question is,

Can the two of us go to the Beijing consulate or embassy and get her Canadian passport certified or notarized (as I am an American Citizen) for the purpose of obtaining the ITIN?

Secondly, could I currently file my taxes as Married filing Single or does she need a SSN or ITIN for this as well? and lastly,

I know the Married filing Joint tax return with the ITIN needs to be mailed. But, what about the Married filing Single? Could this be done without mailing?

I am just so confused by this. I will not see her again before mid-may and therefore we have no way to get the passport certified or notarized and obviously then it will be past the tax deadline. Any and all help that any of you could provide would be greatly appreciated. Thanks.