Interesting information on taxes

[The Mean Lady 604]

Yeah, that's what doesn't make sense to me. I would think once she becomes an LPR and if she continues to work there before moving here to live with me that income could be subject to tax.

As long as she makes less than the amount indicated in my link, she won't pay taxes on it in the US.

/end of story.

Also, if she hasn't moved to the US, then she isn't a LPR yet.

[SAT 9,609]

Yeah, that's what doesn't make sense to me. I would think once she becomes an LPR and if she continues to work there before moving here to live with me that income could be subject to tax.

And even then, she can claim the foreign earned income exclusion...

edited, poor example.

Edited January 28, 2013 by SteveAndTiff

[The Mean Lady 604]

I'm finding this, which I think is what is confusing everyone, yes?

Hmm... now I'm confused!

A U.S. citizen or a U.S. resident alien who is physically present in a foreign country or countries for at least 330 full days during any period of 12 consecutive months.

I assume if she moves, basically anytime before december lol then she couldn't claim exemption according to the website.

Now I agree that sounds ridiculous!

[SAT 9,609]

In any scenario her earned income in Japan will not be taxable by the US.

[Roosha 51]

I'm finding this, which I think is what is confusing everyone, yes?

Hmm... now I'm confused!

I assume if she moves, basically anytime before december lol then she couldn't claim exemption according to the website.

Now I agree that sounds ridiculous!

That's only if you're using the physical presence test. You can also use the bona fide residence test. I used it for 2012 b/c I spent 3 months on vacation in the USA. Let me find the link on IRS for more info.

Here ya go: http://www.irs.gov/publications/p54/ch04.html#en_US_2012_publink100047413 that details how to prove foreign residence using the bona fide residence test. Keep in mind then when you will be doing this your wife will be a LPR, so this will apply.

Edited January 28, 2013 by Roosha

[NikLR 13,227]

No she wouldn't have to pay tax on the income because there is a foreign exclusion up to 92k US dollars.

It sounds silly but it is what it is. I was married in May 2012 and the Canada Revenue Agency (Canadian equivalent to the IRS) required me to send my husband's world income - converted to Canadian dollars - from 2011 so they could calculate my Child Tax Benefits. We were barely dating in 2011! But the CRA wanted his income to decide how much they were going to give me. It's silly because he's a non-resident of Canada and it's not his child either. I called an argued but to no avail. Thankfully they decided I didn't owe them over a grand... Silly buggers.

Essentially they go by year. 2012, 2013... you get the idea. You can't do just half a year. You have to file taxes for an ENTIRE year. But if she works in Japan for most of that year, makes less than the foreign exclusion amount (US dollars) she won't have to pay taxes. She is currently exempt from paying or filing taxes because of the US-Japan tax treaty. Being married has a lot more implications and makes more changes to your life than people realize. It's not just a sheet of paper.

[The Mean Lady 604]

No she wouldn't have to pay tax on the income because there is a foreign exclusion up to 92k US dollars.

It sounds silly but it is what it is. I was married in May 2012 and the Canada Revenue Agency (Canadian equivalent to the IRS) required me to send my husband's world income - converted to Canadian dollars - from 2011 so they could calculate my Child Tax Benefits. We were barely dating in 2011! But the CRA wanted his income to decide how much they were going to give me. It's silly because he's a non-resident of Canada and it's not his child either. I called an argued but to no avail. Thankfully they decided I didn't owe them over a grand... Silly buggers.

Essentially they go by year. 2012, 2013... you get the idea. You can't do just half a year. You have to file taxes for an ENTIRE year. But if she works in Japan for most of that year, makes less than the foreign exclusion amount (US dollars) she won't have to pay taxes. She is currently exempt from paying or filing taxes because of the US-Japan tax treaty. Being married has a lot more implications and makes more changes to your life than people realize. It's not just a sheet of paper.

Filing my husband as married joint on my taxes in the US was a big hassle so we left me out of everything in Canada lol.

I don't even know if there's an ITIN type thing in canada for that?

[Gosia & Tito 199]

Not sure if I'm posting this in the right forum. But since I'm petitioning for a CR-1 I'll throw it up here and see if others know.

My uncle is a retired financial executive and CPA so I have been asking him questions about what to do in regards to taxes when my wife gets her visa and moves here from Japan. He is still looking into this and said he will call the IRS and speak to them...but here's what he found out. The way the IRS law is written, when my wife comes over from Japan, any income she made at her job in Japan during 2013 we will have to claim on our 2013 taxes. He said that this applies specifically to legal permanent residents. I was quite surprised when he told me this...that the government will make us pay taxes on money she earned as a citizen in Japan that she already paid taxes on over there. But he said we might be able to deduct the amount of tax that she already paid in Japan on our 2013 taxes as well.

Has anyone else heard of this or had to do this when their spouse came to the US? Again, he's going to research more to find out for sure. But it looks like this what the IRS requires.

It is like you are saying, but you can now also claim her as a dependent (as it is likely she might not work for some time upon arrival); and more importantly, you need to check about any double taxation treaties US and Japan would have, especially if taxes have been paid. There are a number of rules and exclusions and you need to research. The taxation also depends in the specific income levels and time periods she was in Japan and the US. Off the bat, it is not possible to say if you would end up paying any taxes or not.

Also, remember, you are supposed to file in a way that gets you the lowest possible tax burden.

[Alaska2012 462]

Will the IRS ask for documents stating your income from the foreign country or do you just put down the numbers yourself?

[NikLR 13,227]

Filing my husband as married joint on my taxes in the US was a big hassle so we left me out of everything in Canada lol.

I don't even know if there's an ITIN type thing in canada for that?

As far as I know there isn't. I just had to send them a letter since I'd already done the taxes for last year for the child tax. But I assume this year's taxes will be quite different. I'm hoping they'll be my exit taxes, so I might as well make everything the biggest confusing mess possible, close my bank account that receives auto payments and be done. LOL!!! To be honest I've filed taxes since I was 18, and for 9 years those taxes were common-law. I didn't do anything different than I would otherwise; you don't have more tax taken off for being single or married. If anything it adversely effects married couples vs single parents. Before I was married I was receiving about $288/month for child tax and afterwards they decided I could only receive $99. If anything being married adversely effected me in that regard.

offtopic: right now I'm cursing effect and affect. I never know which one to use when despite looking it up!

[The Mean Lady 604]

As far as I know there isn't. I just had to send them a letter since I'd already done the taxes for last year for the child tax. But I assume this year's taxes will be quite different. I'm hoping they'll be my exit taxes, so I might as well make everything the biggest confusing mess possible, close my bank account that receives auto payments and be done. LOL!!! To be honest I've filed taxes since I was 18, and for 9 years those taxes were common-law. I didn't do anything different than I would otherwise; you don't have more tax taken off for being single or married. If anything it adversely effects married couples vs single parents. Before I was married I was receiving about $288/month for child tax and afterwards they decided I could only receive $99. If anything being married adversely effected me in that regard.

offtopic: right now I'm cursing effect and affect. I never know which one to use when despite looking it up!

I'm pretty well versed with US taxes, but the above post is really how canadian taxes make me feel.

I FREAKED looking at my husband's paycheck once because it looked like no taxes were being taken out.

Still don't know what these things depict.

All I know is he makes like 2k a year and he gets back like 600 throughout the year lmao.

50 bucks a month in these GST refunds.

I like 'em.

[newlyweds2010 208]

When you file your returns, you do so for the entire year, so anything earned during that year (even before becoming an LPR) has to be reported. When we did our first tax returns as married filing jointly, we availed ourselves of the help of a CPA in order to sort out what to do with my non-US income. He confirmed that you report everything, but you do not pay taxes due to certain international tax treaties.

[Alaska2012 462]

When you file your returns, you do so for the entire year, so anything earned during that year (even before becoming an LPR) has to be reported. When we did our first tax returns as married filing jointly, we availed ourselves of the help of a CPA in order to sort out what to do with my non-US income. He confirmed that you report everything, but you do not pay taxes due to certain international tax treaties.

Did you have to send in any documents stating your earnings abroad?

[newlyweds2010 208]

Did you have to send in any documents stating your earnings abroad?

I gave our CPA copies of the invoices I issued back home (I was self employed and therefore had no W-2 equivalent forms). Since my income was well below the threshold, he probably just threw them away, or maybe he used them, I don't know.

[AmyWrites 593]

I don't mean to derail the thread, but my husband works remotely, for a Russian company. How would be go about the taxes?