Filing taxes as married

[CarlosAndSveta 808]

I have been working on my taxes this weekend. If you take time to read the instruction book, it explains very clearly that if you are married to a non-resident alien (your spouse lives outside of the US) then you need to file as single (or head or househols if you have a dependant living with you.)

Thank you! I don't understand why some people would think differently!

If you are a U.S. citizen and your spouse is a non-resident alien then you have three filing status options for preparing your U.S. Income tax return:

Married Filing Jointly – This is your best option since it will probably result in the lowest tax liability. To file as married filing jointly your non-resident alien spouse must have an ITIN or SSN. You can apply for an ITIN at the time you file your return by completing Form W-7 and attaching a copy of your completed joint tax return. The joint tax return must include the election statement that the non-resident alien spouse elects to be treated as a resident alien for tax purposes.

Head of Household – This is the next best option. The tip in the left column of page 13 of the instructions for Form 1040 states that "You may be able to file as head of household if you had a child living with you and you lived apart from your spouse during the last 6 months of 2010. See Married persons who lived apart on this page." This is the only situation where if at the end of a tax year you are still legally married you don't have to file as married.

Married Filing Separately – This is the worst option since it will result in the highest tax liability. If you file married filing separately you will not be able to take certain deductions and credits. See page 13 of the instructions to Form 1040. The only advantage of filing Married Filing Separately is that the non-resident alien spouse doesn't need to file a U.S. tax return and therefore does not need an ITIN or SSN.

If you are married at the end of 2010 then you should not file as Single. That is incorrect and you could subject yourself to penalties from the IRS. Plus if you are trying to bring your spouse to the U.S. it is always better to file joint returns with your spouse for immigration purposes.

Edited January 30, 2011 by CarlosAndSveta

[ceyhunihal 6]

The USC was married in 2010 and should NOT file single. The status will generally be "married filing separately" if he doesn't want to file jointly. Filing jointly will be an advantage tax-wise. You will have to do a couple of extra steps this year.

•You will complete your joint tax return leaving a blank where a SSN or itin would go for your spouse. The 2010 UK income will be converted to US $$ and reported (under less common income on TurboTax). It is self reported as is the conversion rate. Form 2555 or 2555EZ will be filled out for the foreign income exclusion. They want to know worldwide income, but then you get to exclude up to $91k-ish.

•You will write a statement saying you are a US citizen and he/she was a non-resident alien on the last day of 2010 and you both elect for him/her to be treated as a resident alien for tax purposes. That's required for him/her to file jointly with you as he/she is not a resident yet by immigration rules. But for the IRS, the statement will allow him/her to be considered a resident as far as filing taxes goes. Otherwise a non-resident can not file a joint return. You both sign the statement and each list you name, address, and id number (SSN and A-number). Staple it to the end of your return.

•You complete a FORM W-7 ticking reason "e" and giving your name and SSN on the line beside it. You must provide identity with the w-7 and his/her passport will be enough. The IRS says this "If you submit an original valid passport (or a notarized or certified copy of a valid passport) you do not need to submit any other documents. If you do not submit a passport document, you must provide a combination of documents (at least two or more) that are current and that (1) verify your identity (that is, contain your name and a photograph), and (2) support your claim of foreign status."

•Mail you tax return (signed by both), the statement, the W-7 and identity document to

Internal Revenue Service

ITIN Operations

P.O. Box 149342

Austin, TX 78714-9342

NOTE: This a special division and not where you would normally file your return. They will process the itin in Austin and add the itin number to the tax return you sent with it. Then the tax return will be processed. It will take a little longer.

You have the best answer!That is what IRS told me exactly!I don't know where other people getting their wronng info?Married filing separately,easiest way.

Thank you so much,for the best and correct answer.

[Done--Really 331]

Carlos, you are just plain wrong. The default is single when one spouse is a nonresident alien, and you can OPT IN to married filing jointly, but please read IRS document 519 before you post more stuff acting as an expert.

Why is this so hard--the instructions may be full of IRS jargon, but they are pretty simple.

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

[xelance 31]

if my wife did not make any money last year, how do I factor that in? Just use my salary I guess, right?...

[CarlosAndSveta 808]

Carlos, you are just plain wrong. The default is single when one spouse is a nonresident alien, and you can OPT IN to married filing jointly, but please read IRS document 519 before you post more stuff acting as an expert.

Why is this so hard--the instructions may be full of IRS jargon, but they are pretty simple.

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

Where in that link that you posted does it say that a married U.S. citizen with a non-resident alien spouse can file as Single for tax purposes. I think I would be considered an expert since I am in my 32nd year of being an IRS Agent. Nobody is infallible, especially me, but please point out specifically the wording in the link you posted that says that a married U.S. citizen with a non-resident alien spouse is allowed to file as single.

[Nich-Nick 3,354]

Carlos, you are just plain wrong. The default is single when one spouse is a nonresident alien, and you can OPT IN to married filing jointly, but please read IRS document 519 before you post more stuff acting as an expert.

Why is this so hard--the instructions may be full of IRS jargon, but they are pretty simple.

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

I agree with Carlos on this. I only have 3 years experience with an alien, but decades of reading IRS forms and doing my own taxes....back in the olden days with a pencil and paper... BC (before calculators) and BT (before TurboTax.)

From Publication 519 on page 26 it says a non-resident alien can file as single if his spouse is in another country more than 6 months. That would be like a married foreign student or such in the US with a foreign wife back home. For the purpose of this thread, the question is what is the filing status of the US citizen with a foreign spouse. The US citizen if married on the last day of 2010 is married. If the divorce came through on Dec 30, 2010, then he is single. The exception (and it's not in Pub 519 because it's a general US citizen resident topic) is if the couple is legally separated according to the laws of the state where they live. It's not a "she moved out" thing, but a formal legally filed separation order. I'm probably not using the right legal terms, but it's a legal separation not just physical separate living arrangements. An exception is if one of the spouses qualifies as "head of household" which is normally a single parent with minor children to support. In some cases a not-yet-divorced person may qualify for that status if living apart from the spouse.

So I still interpret a married US citizen/resident does not file as single.

Edited January 30, 2011 by Nich-Nick

[Done--Really 331]

Carlos--I apologize and stand corrected--the link I provided only addressed the nonresident alien side of the question, although I think you would agree that the nonresident alien as well as the USC have to opt in to treat the nonresident alien as a resident alien which would allow them to file jointly.

And as far as filing as single, TurboTax and other tax packages classify the USC as SINGLE if the spouse is a nonresident alien with no US income that does not meet the Green Card test or the Substantial Presence test.

[CarlosAndSveta 808]

Carlos--I apologize and stand corrected--the link I provided only addressed the nonresident alien side of the question, although I think you would agree that the nonresident alien as well as the USC have to opt in to treat the nonresident alien as a resident alien which would allow them to file jointly.

And as far as filing as single, TurboTax and other tax packages classify the USC as SINGLE if the spouse is a nonresident alien with no US income that does not meet the Green Card test or the Substantial Presence test.

No need to apologize. I've been using Turbo Tax for at least ten years but I never came across this situation. When it came time to file my first joint tax return with my wife she was already a resident alien. Somebody needs to point out to Turbo Tax that their software is not correct in this situation.

[Nich-Nick 3,354]

And as far as filing as single, TurboTax and other tax packages classify the USC as SINGLE if the spouse is a nonresident alien with no US income that does not meet the Green Card test or the Substantial Presence test.

Somebody needs to point out to Turbo Tax that their software is not correct in this situation.

TurboTax gets it right for me. Just tried it. I've tried out the scenarios each year since 2008 so when I help people on VJ, I'll know basically how TurboTax is organized for that year. Even TurboTax Basic (the cheap version) works it out. I have the installed version and haven't tried online yet this year.

But you start fresh with a new return without pulling in any old data and it will say "were you married on Dec 31, 2010?" Your answer is YES. From there it knows you aren't single no matter what you put in about the wife. Continue on and it starts asking for wife info. It asks her State. There is an option for Foreign. It later asks if she was foreign all year or part of the year. Anyway.... It establishes you are married with a foreign wife (either all year or part year) and says in the end....Your filing status is Married Filing Jointly.

TurboTax 2010 actually walks you through the worldwide income and foreign exclusion quite well this year over 2008 and 2009 versions. Before it was well hidden and they didn't track together like they do for 2010. You encountered the income exclusion fairly easily but finding where to show the foreign income as income was a couple of layers deep with no indication that topic had anything to do with foreign income from the top menu view. I think they improved it.

[nigel 7]

Simple rule...Married file as married joint...single file as single..Nomatter where the spouse is in the world.

[Shenzhen 34]

Hi all,

Was speaking to the hubby today, and he seems to be under the impression that you cannot file taxes as married unless you have been married for more than 6 months.

He also believes the spouse must have SSN.

I think both of these points are wrong?

Anyone got the definitive answer?!

You will need to file a W-7 for ITIN number along with your documented income earned for 2010 with your tax return.

Edited January 30, 2011 by Shenzhen

[dan_ling 6]

if my wife did not make any money last year, how do I factor that in? Just use my salary I guess, right?...

Yes, you only use your salary if your wife has no income to report.

[mare333 0]

ok guys so is this definitive answer:

easiest was is - Married Filing Separately - Spose will NOT have to sing ANYTHING and no need for her passport or any other docs. No need for W 7 too. ONLY downside is - highest tax liability

Best way for lowest tax liability - Married Filing Jointly - but will need spose passport or other docs + W7 + her signature ..

Am i correct?

Edited January 31, 2011 by dare888

[CarlosAndSveta 808]

ok guys so is this definitive answer:

easiest was is - Married Filing Separately - Spose will NOT have to sing ANYTHING and no need for her passport or any other docs. No need for W 7 too. ONLY downside is - highest tax liability

Best way for lowest tax liability - Married Filing Jointly - but will need spose passport or other docs + W7 + her signature ..

Am i correct?

That is correct for a U.S. Citizen married to a non-resident alien.

Edited January 31, 2011 by CarlosAndSveta

[dan_ling 6]

ok guys so is this definitive answer:

easiest was is - Married Filing Separately - Spose will NOT have to sing ANYTHING and no need for her passport or any other docs. No need for W 7 too. ONLY downside is - highest tax liability

Best way for lowest tax liability - Married Filing Jointly - but will need spose passport or other docs + W7 + her signature ..

Am i correct?

Yes, if you do file Married Filing Seperately once your wife arrives and receives SSN# you can file an amendment to Married Filing Jointly and get the difference as a return.