Filing 2009 US Taxes

[road417king 7]

Publication 519 (2008), U.S. Tax Guide for Aliens (No 2009 version) http://www.irs.gov/pub/irs-pdf/p519.pdf

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On a complicated side note: If you happen to have alot of investments and capital gains reported on Schedule D, your taxes are figured by a Captial Gains worksheet rather than the tax tables. Foreign spouses income does play a slight role in that so it's not as simple as show foreign income, then subtract it back out if you have lots of dividends and capital gains. Turbo Tax does all the work for you. I had to really dig and analyze how the foreign income played a role, only out of curiousity of how it worked. I still came out ahead filing jointly.

Thanks! This information is very much appreciated and I'm sure it will be quite helpful. I typically use TurboTax Premium because of itemized deductions, mortgage interest and the occasional stock sales so I'm hoping that it will do the right thing for me.

Thanks again!

Mike

[britbird 4]

I agree, give turbo tax a whirl. It should ask you enough prompts to figure out your situation, and also give you the tax differences between filing jointly and filing separately.

[Nich-Nick 3,354]

nick nick...

do you know if we still can file 2555ez online. I will buy turbotax premiere. I would like to e-file so we can get the check faster...instead of mailing it in.

You can just use the 2555 if the EZ is not included in your version. It was just alot of extra pages and questions that didn't apply. I used it's calculations to fill in my EZ. I haven't e-filed my taxes because I tend to always owe taxes rather than get a refund, so in no hurry. I don't know how it works if you need to send in something, ie the signed statement electing to be treated as a resident for tax purposes. And I don't know if ITIN numbers are accepted for e-files. My husband had his SSN by then. Maybe somebody who did it last year will respond on this.

Thanks! This information is very much appreciated and I'm sure it will be quite helpful. I typically use TurboTax Premium because of itemized deductions, mortgage interest and the occasional stock sales so I'm hoping that it will do the right thing for me.

Thanks again!

Mike

Mike, TurboTax Basic handles all of those things. It downloads my brokerage statements /1099s straight into Schedule D. What a time saver. I do think I'll spend a little more this year and buy Deluxe because I think the "It's Deductible" software will be helpful. Normally I don't have enough to itemize, mainly because my house was paid off. However this year we bought a new house and I donated mountains of items to charity shops and I've had $100,000 in medical bills since October. Ouch! My insurance covered all but a few thousand, but I'll still be over the percentage needed to take a medical deduction. Along with the donations and new mortgage stuff I plan to itemize. This year I think the donation values that Deluxe offers will be good. And hopefully I will get a refund this year and TurboTax is offering free e-files, even with Basic this year.

I agree, give turbo tax a whirl. It should ask you enough prompts to figure out your situation, and also give you the tax differences between filing jointly and filing separately.

You should familiarize yourself with Publication 519 so you'll know how to respond to TurboTax prompts. And I found the online free version not as useful as having it installed on your PC. It was hard to figure out where to report the foreign income last year. I totally missed it in the "interview" part. Finally found it under a prompt I didn't think applied to me. I know they change the format every year, but here's where the foreign income was reported in 2008 version and maybe that will help you find it in 2009 version. I haven't bought mine yet to know.

In the top menu bar VIEW > (drop down) INTERVIEW TOPIC > FEDERAL TAXES

Then you get a page that says:

FEDERAL TAXES

1. Wages & Income

2. Deductions & Credits

3. Other Tax Situations

CONTINUE

Click CONTINUE and on the next page choose SELECT SPECIFIC TOPICS

Then a long page comes up with all possible incomes. Scroll way down to the bottom of the list to LESS COMMON INCOME. In that list is FOREIGN EARNED INCOME. You can click "start" if you want to read how it guides you through the topic.

[KandK 0]

I haven't started the AOS process yet as I'm still preparing all the documents and things. is it necessary to get the ITIN number for my spouse? even though she's currently not legal, did not earn any income, and won't be filing her own separate return. I was going through the scenarios on TurboTax and it's giving me the impression that I must have either a SSN or ITIN for her. regardless of if I do MFJ or MFS. could I leave the space blank, perhaps? what are my options in this case? I think I'd have to consider her a resident alien since she's been here for the entire 2009.

[road417king 7]

It downloads my brokerage statements /1099s straight into Schedule D. What a time saver.

The only problem with that is that most of my stock sales are the result of ESPP and that never downloads correctly so I end up having to do manual tweaking regardless.

As for using the premium edition, I typically read what the TurboTax "what this version offers" and go with the one that covers all that I need. Also the deduction finder does help to remind me of donations I've made through the year so I find that useful as well.

Thanks!

Mike

[Nich-Nick 3,354]

I haven't started the AOS process yet as I'm still preparing all the documents and things. is it necessary to get the ITIN number for my spouse? even though she's currently not legal, did not earn any income, and won't be filing her own separate return. I was going through the scenarios on TurboTax and it's giving me the impression that I must have either a SSN or ITIN for her. regardless of if I do MFJ or MFS. could I leave the space blank, perhaps? what are my options in this case? I think I'd have to consider her a resident alien since she's been here for the entire 2009.

You don't have a timeline and it's hard to know what your adjustment of status is based on...a visa, illegal entry??? To file jointly with you, she must have an ITIN or SSN. She doesn't have to have a green card. In illegal immigrant can get an ITIN and file taxes if they are working, even if it's without work authorization. It's weird, I know. But if you don't want to include your wife, then you file Married Filing Separately and she files nothing if she has no income.

[Dakine10 5,452]

How can the IRS verify your non USC spouse income from oversea...if you decide...not to claim it?

There are no W2 or 1098 in vietnam...like we have here.

The IRS can verify tax information with any country they have a tax treaty with. Canada and the US routinely share tax filing information. I'm not sure for other countries.

[rin and john 71]

You can just use the 2555 if the EZ is not included in your version. It was just alot of extra pages and questions that didn't apply. I used it's calculations to fill in my EZ. I haven't e-filed my taxes because I tend to always owe taxes rather than get a refund, so in no hurry. I don't know how it works if you need to send in something, ie the signed statement electing to be treated as a resident for tax purposes. And I don't know if ITIN numbers are accepted for e-files. My husband had his SSN by then. Maybe somebody who did it last year will respond on this.

To get an ITIN, a W-7 has to be submitted along with the completed return to a different IRS address than the one for mailing returns. It takes 6 - 10 weeks for the IRS to assign an ITIN, then they forward it for processing. So if getting an ITIN, e-file is not an option.

[xd-data-ii 0]

Hi.

Myself and my wife moved to the US in June 2009 after both getting greencards. we both had Irish income up to May 2009. we then have income in ireland from renting our apartment there from june to present.

I have income in the US from end of August until present.

I am trying to figure all this tax return stuff out and am getting very very confused and have to do it for both countries.

So I assume we file married jointly and are considered resident aliens in the US for the whole year. therefore

For determining the employment income from Ireland I have a statement saying what i earned and what tax i paid (p45). for the rent income there is a gross figure but there is allow deductions that can be taken off that will give a taxable income figure. Is it this figure I just need to provide for the US tax return?

Is the best thing to do just to total my employment income plus my wife's plus the rent taxable income to determine the foreign income figure?

And for the tax figure do I just get a total of the tax paid on these three?

So basically I have end up with two figures to enter in relation to Ireland?

And is this irish income figure entered in a substitute W-2 form? Which gives a total income figure of the US W-2 income plus the irish figure.

Now, do I then go through the 2555 form to exclude the irish income figure from the total income which basically leaves the US income?

Does the fact that there is a treaty between the US and Ireland mean that each year we will end up not paying extra tax in the US on any income earned in Ireland (ie. it can be excluded using 2555 form)?

I am worried about having to pay tax in the US on what is i have earned in Ireland. If the above is correct then it seems a matter of just reporting information but not ending up paying more money on it

also regarding the rent income, nobody knows about that other than us and in Ireland we have until the end of October to do the tax return so the tax group there wont know about it until i do the return and pay the tax with the return. Therefore if I do this in October and the US tax returns have to be done by april i will not have reported this income and not have paid the tax so if they were to check with ireland there would be no record of the rental income until october. So would it be best to do my irish tax return as soon as possible too?

Also, is there any sort of credit given to persons renting (ie. a tenant) in the US? I know most countries do this but I cant seem to find any info on it for US tax returns. And if so where is this claimed?

Last thing, i have been reading that foreign bank accounts need to be reported. Does this mean we will pay money in the US or are they just trying to keep track of you? I just have my normal bank accounts back in ireland and make no income of anything from them - no interest or anything. Do I need to report them or are they talking of different types of accounts and only ones with over $10,000 at this time?

I would greatly appreciate any advice you can give me

[road417king 7]

I would greatly appreciate any advice you can give me

Seriously, you need to hire an accountant to do your taxes. Taking any advice other than that would only be asking for trouble.

Oh, and good luck with it!

Mike

[xd-data-ii 0]

In form 2555, when they ask for Employer Information on line 3 and 4 are they asking for the employer for where we worked before moving to the states, or currently in the states now?

That form really just seems to be directed towards a US citizen who went on assignment with a US company abroad for a while. Seems hard for it to account for someone who moved to the states and is discussing prior employment

[BrahmaBull 0]

To get an ITIN, a W-7 has to be submitted along with the completed return to a different IRS address than the one for mailing returns. It takes 6 - 10 weeks for the IRS to assign an ITIN, then they forward it for processing. So if getting an ITIN, e-file is not an option.

the address on the instruction form of the W-7?

[rin and john 71]

the address on the instruction form of the W-7?

Yes, the address is in the W-7 instructions, under "Where to Apply" (send both the W-7 and tax return to Austin, TX).

[Frank and Duyen 0]

Applying for a ITIN wont complicate getting a ssn after the (CR1)alien spouse arrives in the US will it?

I also see at the top of the w-7 it says "Do not submit this form if you have, or are eligible to obtain a US ssn." I assume that at the present she is not eligible because she hasnt gotten her visa yet, correct?

[rin and john 71]

Applying for a ITIN wont complicate getting a ssn after the (CR1)alien spouse arrives in the US will it?

I also see at the top of the w-7 it says "Do not submit this form if you have, or are eligible to obtain a US ssn." I assume that at the present she is not eligible because she hasnt gotten her visa yet, correct?

Correct, she cannot get a SSN until admission into the USA (see link). Getting an ITIN will complicate getting the SSN (issued by separate agencies - IRS issues ITINs, SSA issues SSNs).

http://www.ssa.gov/ssnvisa/

see section on "what you need to do". You will request a SSN when you complete the DS-230 as part of the visa application. DHS notifies SSA upon admission of the immigrant. If more than 3 weeks after admission, then go to SSA office and have the request traced.