A new little tidbit on U.S. taxes

[Delicia 1]

I am married to an alien!

I called the IRS today to clarify my options as a USC with a U.S. job/income in 2007. I was living in Canada with no income in 2006 so I didn't file a return and I filed my normal 'head of household' for 2005 which was the year I got married, but I had worked most the year in the U.S. and had a dependent, so its all fine.

So, my question to the IRS was: what is my correct filing status? I have a non resident alien spouse with no U.S. income/residence and no ITIN or SSN. (I really wanted to avoid having a complicated return this year as I need to get my 2007 IRS transcript as soon as possible for the immigration process.)

So, the IRS answer: I must file as married for 2007 because I lived with my spouse for 6+ months out of the year, thus disqualifying me from the head of household status. I can either file jointly with him or as married filing separately. The joint way would require my husband to apply for or have an ITIN, the separate would not. Either way, without a ITIN for hubby, I cannot file electronically because of the missing number. So, quick return filing goes out the window.

Additionally, I inquired about the W-7 and the documentation the IRS requires to get a ITIN for hubby. We already had a certified copy of his passport but it was completed by the Chilean Consulate in Toronto, and they only issue their documents in Spanish. I figured then that we were SOL as far as getting a W-7 with the Spanish document, but the IRS informed me otherwise today. I was advised to use the Spanish certified copy with the W-7 application and I can just attach those to my tax return. He said if the document was in Spanish, it was no problem for them to translate in house but if it were another language, it could be problematic.

[thermophile 0]

Is there any reason that you don't want to file joint? You will be able to exclude all of the out of country income with the 2555. Some people have mentioned that they didn't want to do this, but as little money as I make there's no reason for me not to do it. You won't be able to file electronically anyway when you use the 2555.

[brnidokiegurl 0]

My understanding is u take the W7 form to the person doing the tax and submit it all at one time and can be used as married filing jointly, someone i know also did this and said they barely looked at the evidence papers....another said it did not need be translated,

http://www.irs.gov/individuals/article/0,,id=96287,00.html

Edited January 9, 2008 by brnidokiegurl

[Delicia 1]

I didn't want to file jointly just because the time involved in me completing the forms and then having to send them to my husband in Toronto to sign and mail back. I need to get a 2007 transcript ASAP as I suspect I will be doing the AOS about the time that the IRS is completing processing my return.

[trailmix 77]

I didn't want to file jointly just because the time involved in me completing the forms and then having to send them to my husband in Toronto to sign and mail back. I need to get a 2007 transcript ASAP as I suspect I will be doing the AOS about the time that the IRS is completing processing my return.

What would be the benefit of filing with your Husband this year? Since he has foreign income I assume there is no deduction attached? Or is that what you are referring to thermophile, that because you can use the 2555 to exclude foreign income that Delicia could claim her Husband as a dependant?

Anyway, I'm with you Delicia, I would keep it as simple as possible, unless of course it would mean more money for you

Oh and for reference in terms of time - I mailed mine last year on April 16th (3 years worth) and I believe they were completed some time in June - actually got the transcripts mid July.

Edited January 9, 2008 by trailmix

[thermophile 0]

the first $80k of foreign income can be excluded, so in our case we exclude all of the hubby's income and are taxed as if the two of us live on my income alone. for me (remember very poor grad student) it's the difference between owing a few hundred dollars and getting nearly all the withholding that I paid back. the hubby isn't a dependent-but you file as 2 people living on just one of your income. run the numbers and see what the difference is for your case.

i.e.(I'll assume that your hubbies make less than $80k, cause if they did you'd just go to an accountant to get this done) you can just put in all your info and when you get to the stage where you look up your tax liability, look at what you owe as married filing seperately and married filing jointly. then you can decide whether it's worth filling out 2 more forms or not. The 2555EZ is, well, easy. I don't know how difficult getting an ITTN is cause my hubby already had a ssn, but from what I've read it doesn't sound very involved.

Delicia-a signed copy of your 2007 tax return can also be used as proof of income. A tax transcript is basically the backup if you're like me an can't remember exactly what safe place you put your copy of the return.

Edited January 9, 2008 by thermophile

[trailmix 77]

the first $80k of foreign income can be excluded, so in our case we exclude all of the hubby's income and are taxed as if the two of us live on my income alone. for me (remember very poor grad student) it's the difference between owing a few hundred dollars and getting nearly all the withholding that I paid back. the hubby isn't a dependent-but you file as 2 people living on just one of your income. run the numbers and see what the difference is for your case.

i.e.(I'll assume that your hubbies make less than $80k, cause if they did you'd just go to an accountant to get this done) you can just put in all your info and when you get to the stage where you look up your tax liability, look at what you owe as married filing seperately and married filing jointly.

Delicia-a signed copy of your 2007 tax return can also be used as proof of income. A tax transcript is basically the backup if you're like me an can't remember exactly what safe place you put your copy of the return.

Ahh ok, that is the answer I was looking for, thanks thermophile. We both live in Canada so it doesn't apply for us, but it would for you Delicia...cha ching!

[thermophile 0]

this will matter for you when you move down here-you'll be able to exclude your Canadian income for the portion of the year before you move. you'll be all ready for it.