Filing taxes while aos is going on?

[Gage 2]

I just got off the phone with the IRS!I got a very nice lady that explained the best plan for filing would be to file her as a resident alien and file married jointly.

Fill out the 2555ez with mine and claim her income and then it would be turned around and taken off cause she made less than 93,000.The only drawback would be i would have to mail it in,instead of electronic,cause you have to attach a written statement saying you wanna treat her as a resident alien.

Well, my situation is a little different than yours since my wife just received her Greencard. In any case we're just filing married-joint, and I have no plans on claiming her previous income this year in Russia. Not only has she not worked since May, but there's no way the IRS is going to know her 2009 Russian income anyway.

[lizandpat 0]

I'll add one more point: Someone who is considered a non-resident alien cannot file a joint return. If the joint return option is off the table, then the USC spouse would then probably be forced to file "married filing separately" ("single" is not an option for a married US Citizen, even one married to a nonresident alien spouse, and "Head of Household" has other requirements that most VJ'ers won't meet. The only other status would be "qualifying widower", which wouldn't apply to someone who was currently in a marriage with a live human being). The "married filing separately" filing status generally has the highest tax rates.

If the alien spouse doesn't meet the green card test or the substantial presence test, you have to decide whether to elect to consider him/her a nonresident alien or a resident alien for tax purposes.

If they choose to consider the spouse to be a resident alien, then the couple can file joint return, and the alien spouse must declare all worldwide income. Some (maybe all) of the alien spouse's income may be excluded from taxation, but it must be declared.

If they don't make the choice, and let the spouse be considered a nonresident alien, then the USC spouse generally must file "married filing separately", and the alien spouse probably has no need to file a return at all.

Which of these scenarios results in less tax being paid depends on the individual financial situation. But if the alien spouse has little income that will be subject to US taxation, then it's common for the advantage of a joint return to be worth the trouble of making that election to treat the nonresident spouse as a resident.

I'd suggest that, whether you're doing your own taxes or hiring them out, the IRS tax guide for aliens, publication 519, is a "must read".

http://www.irs.gov/publications/p519/index.html

Just out of curiosity, where did you get the information that you can't file a joint return if your spouse is considered a non-resident alien?

[payxibka 10,045]

Just out of curiosity, where did you get the information that you can't file a joint return if your spouse is considered a non-resident alien?

If you follow the link to Pub 519 it says:

Married filing jointly. Generally, you can file as married filing jointly only if both you and your spouse were resident aliens for the entire tax year, or if you make one of the choices discussed in chapter 1 to treat your spouse as a resident alien for the entire tax year.

A nonresident alien generally cannot file as married filing jointly. However, a nonresident alien who is married to a U.S. citizen or resident can choose to be treated as a resident and file a joint return on Form 1040, Form 1040A, or Form 1040EZ. For information on these choices, see chapter 1. If you do not make the choice to file jointly, file Form 1040NR or Form 1040NR-EZ and use the Tax Table column or the Tax Computation Worksheet for married individuals filing separately.

[wratran 0]

Nonresident Spouse Treated as a Resident

If, at the end of your tax year, you are married and one spouse is a U.S. citizen or a resident alien and the other spouse is a nonresident alien, you can choose to treat the nonresident spouse as a U.S. resident. This includes situations in which one spouse is a nonresident alien at the beginning of the tax year, but a resident alien at the end of the year, and the other spouse is a nonresident alien at the end of the year.

If you make this choice, you and your spouse are treated for income tax purposes as residents for your entire tax year. Neither you nor your spouse can claim under any tax treaty not to be a U.S. resident. You are both taxed on worldwide income. You must file a joint income tax return for the year you make the choice, but you and your spouse can file joint or separate returns in later years.

If you file a joint return under this provision, the special instructions and restrictions for dual-status taxpayers in chapter 6 do not apply to you.

the above is from 519...This statement give you a choice of filing joint or separate....

Am i missing something?

[payxibka 10,045]

Nonresident Spouse Treated as a Resident

If, at the end of your tax year, you are married and one spouse is a U.S. citizen or a resident alien and the other spouse is a nonresident alien, you can choose to treat the nonresident spouse as a U.S. resident. This includes situations in which one spouse is a nonresident alien at the beginning of the tax year, but a resident alien at the end of the year, and the other spouse is a nonresident alien at the end of the year.

If you make this choice, you and your spouse are treated for income tax purposes as residents for your entire tax year. Neither you nor your spouse can claim under any tax treaty not to be a U.S. resident. You are both taxed on worldwide income. You must file a joint income tax return for the year you make the choice, but you and your spouse can file joint or separate returns in later years.

If you file a joint return under this provision, the special instructions and restrictions for dual-status taxpayers in chapter 6 do not apply to you.

the above is from 519...This statement give you a choice of filing joint or separate....

Am i missing something?

the joint filing option is available ONLY if you CHOOSE for the otherwise non-resident alien spouse to be treated as a resident alien....

If the alien passes one of the residency tests (substantial presence or greencard) then by default the are a resident alien for tax purposes. The choice to be treated as a resident alien is for those aliens spouses who "fail" both of the residency tests

Edited January 7, 2010 by payxibka

[klester 0]

I'm in this special situation. I studied up on it, and this is what I'm going to do.

1: Claim my wife as a resident for tax purposes (any USC can do this for their significant other) by attaching a statement to the end of my tax return, as has been previously mentioned.

2: File "Married filing Jointly". This is by far and away the best way to get tax-breaks.

3: Declare my wife's overseas income for 2009, which was about 25,000 USD.

4: Get a waiver for the 25,000 USD earned overseas (no need to pay tax on this). You can write off most overseas income, unless they made a lot (something like 75k+).

5: File using Turbotax online (I've already tested and it seems to work), but at the end, elect to file by mail, print the whole thing out, and attach the statement previously mentioned.

Seems to cover all the bases.

[lizandpat 0]

Great! Thank you all for the information!!!

I've been in contact with a tax preparer who has experience with this particular situation and have an appointment to see her this weekend!

[wratran 0]

I'm in this special situation. I studied up on it, and this is what I'm going to do.

1: Claim my wife as a resident for tax purposes (any USC can do this for their significant other) by attaching a statement to the end of my tax return, as has been previously mentioned.

2: File "Married filing Jointly". This is by far and away the best way to get tax-breaks.

3: Declare my wife's overseas income for 2009, which was about 25,000 USD.

4: Get a waiver for the 25,000 USD earned overseas (no need to pay tax on this). You can write off most overseas income, unless they made a lot (something like 75k+).

5: File using Turbotax online (I've already tested and it seems to work), but at the end, elect to file by mail, print the whole thing out, and attach the statement previously mentioned.

Seems to cover all the bases.

Is the declaration statement a IRS form...or just a handwritten letter?

[NatPatBen 3]

Klester, you have the right idea.

I just did a lot of research and found this:

Choosing Resident Alien Status

Nonresident Spouse Treated as a Resident

Well, that wasn't entirely conclusive, so I called the IRS International Tax Law hotline (215-516-2000) to ask. Joseph told me that

If I file a joint return: (so I know I can file one)

1. He'd be considered a resident alien for tax purposes
   
2. He needs to report world-wide income, converted to USD
   
3. We need to attach a statement signed by both of us containing two things: a declaration that he chooses to be treated as a US resident for the entire tax year and our contact/ID information. The details are in that second link, or on page 10 of Publication 519.
   

Edited January 7, 2010 by NatPatBen

[payxibka 10,045]

Is the declaration statement a IRS form...or just a handwritten letter?

no official form

[Nich-Nick 3,354]

My statement from last year based on what of Publication 519 says should be included:

Statement: Nonresident Spouse Treated as a Resident

We declare that on the last day of tax year 2008:

• Jane Q. Doe is a U.S. citizen

• John P. Smith is a nonresident alien

• Jane Q. Doe and John P. Smith are married. (Note: I didn't take his last name. Your surnames will probably be the same.)

We choose to be treated as U.S. residents for the entire tax year.

__________________________________ 2/4/2009 (USC signature line)

Jane Q. Doe xxx-xxxx-xxx (SSN)

Address

__________________________________ 2/4/2009 ( non USC signature line)

John P. Smith xxx-xxxx-xxx (SSN)

Address

[osen74 4]

hi!.. i was just curious about this topic.. it got me and hubby thinking..

we got married in May 2009.. as of to date, we are in the CR1 process (waiting for case complete at NVC).. hubby is about to file his tax return for 2009, are we required to file "married filing jointly" though i am not yet in the US, no SSN and no ITIN yet?.. if yes, how do we do that?..

[BrahmaBull 0]

Hello All, great info in here.

I am filing with a W-7 (app for ITIN) What do I do on my declaration letter for her SSN? Just put a note that ITIN is applied for with attached W-7?

Also filing a 2555EZ which requires a SSN/ITIN that I dont have.

After reading the W-7 stuff it says the IRS will assign her an ITIN and add it to my 1040. Will they also add it to my 2555EZ and declaration letter? Should I include a note to do so?