Utterly confused about Tax

[LorRenee 6]

So husband arrived on the 5th, and we're planning on filing joint married. I've never really done this before but I know we have to file a paper based return because he's never filed before (a 1040 yes?)

The bit that's confusing me is that he doesn't classify as a resident alien and we've been told that we have to put some kind of declaration with our tax return that states he's a non resident alien but wishes to be treated as resident.

Then there's the issue of what we do about the income he has received while he worked in the UK. I think it was Nich-Nick that said about a form 2555? but we really don't know what to do here.

I'm utterly confused so if anyone could give me a step by step I'd really appreciate it!

[CHarvey80 72]

Per IRS tax code if you had a spouse living abroad during the tax year you May want to file "Married Filing Separately"

http://americansabroad.org/issues/taxation/us-tax-implications-of-a-non-american-spouse/

IRS - http://www.irs.gov/Individuals/International-Taxpayers/U.S.-Citizens-and-Resident-Aliens-Abroad---Nonresident-Alien-Spouse

[LorRenee 6]

Ok, trouble is we want to file jointly to get a bigger tax break. Based on your links we can do that.

I cannot see where and on which form we would declare his forreign income. I assume we cannot use the 1040 EZ, and instead have to use a 1040, or 1040A, then attach the written declaration to say 'please treat as resident' and then include a 2555 or 2555 EZ. Again I assume we cannot use the 2555 EZ because the residency is split.

[Nich-Nick 3,354]

Ok, trouble is we want to file jointly to get a bigger tax break. Based on your links we can do that.

I cannot see where and on which form we would declare his forreign income. I assume we cannot use the 1040 EZ, and instead have to use a 1040, or 1040A, then attach the written declaration to say 'please treat as resident' and then include a 2555 or 2555 EZ. Again I assume we cannot use the 2555 EZ because the residency is split.

I bought my TurboTax but haven't installed it yet to do a step by step. They change their screens every year. They even changed where to report the foreign income so I want to give you 2012 info.

I used 2555EZ. Not a problem. My TurboTax basic version didn't have the EZ form so I let it do the 2555. Then I used the calculations from it to fill out the EZ from the IRS website. The 2555 is more for people who maintained a foreign and US residence...Americans who worked overseas. There's a bunch of stuff about deductions for that and does not apply to your husband.

If you can hold on and let me get 2012 installed and have a look, I will give you a good answer...soon but not in the next few hours. Are you using software? I use the cheapest cd version, not online.

[photomile 101]

We can get software sure but I was under the impression we had to use the paper form since I have never filed before? I will gladly go and get the software though!

[photomile 101]

Also don't even k ow if we are eligible for the 2555. I had a quick look at the EZ and it felt like the "test" would exclude us entirely.

[Nich-Nick 3,354]

Also don't even k ow if we are eligible for the 2555. I had a quick look at the EZ and it felt like the "test" would exclude us entirely.

Yes you are eligible. I use TurboTax. You have the option to print and mail, rather than efile. I prefer the installed version over the online because I can do mine and try different scenarios without starting all over. Just "save as" then start changing things and save to a different file name. And I find installed is easier to navigate. I buy the Basic version and it does everything I need including investment income and owning a small business/self employed. I don't need a State version because Texas doesn't have State Income Tax. $29.99, but I got $10 rebate at Staples.

At Starbucks but will answer your questions when I can.

[The Mean Lady 604]

Yes, his income will be exempt.

No, it won't have to be a paper file since you should have gotten his SSN by now.

Also, it seems you have switched posters in between the thread.

That's slightly confusing.

Edited January 30, 2013 by KDH

[LorRenee 6]

Yes, his income will be exempt.

No, it won't have to be a paper file since you should have gotten his SSN by now.

Also, it seems you have switched posters in between the thread.

That's slightly confusing.

Sorry about that

I again was under the impression we have to be paper filing because I have to make a written declaration in order to be treated as resident for tax purposes?

Also have picked up TurboTax

[The Mean Lady 604]

Sorry about that

I again was under the impression we have to be paper filing because I have to make a written declaration in order to be treated as resident for tax purposes?

Also have picked up TurboTax

If your husband is in the US with a SSN then that doesn't really matter.

You just file the taxes like normal.

The written letter for being treated as a resident for tax purposes is for when you file for an ITIN.

[CarlosAndSveta 808]

If your husband is in the US with a SSN then that doesn't really matter.

You just file the taxes like normal.

The written letter for being treated as a resident for tax purposes is for when you file for an ITIN.

They do need to file a paper return to make the proper election to treat her husband as a Resident Alien for tax purposes for 2012. At a minimum her husband was a Dual Status Alien but more likely a Non-Resident Alien at the end of 2012. In either case they need to make the election to treat her husband as a Resident Alien for tax purposes. This can only be properly done by filing a paper return. See pages 8 through 11 of IRS Publication 519 - U.S. Tax Guide for Aliens. Here is a link to the publication:

IRS Publication 519 - U.S. Tax Guide for Aliens.

Edited January 30, 2013 by CarlosAndSveta

[smashrun 10]

I am confused about how to file our taxes too. Fiance (now husband) worked part of the year in his country, arrived on K-1, and worked part of the year here in the US. From what I can gather, we will have to submit the written statement saying he wants to be treated as a resident for tax purposes (i.e. he is a dual-status alien). We also want to file jointly as it will mean a bigger tax return. I know there is some sort of exemption to ask for regarding his foreign income? Hopefully he wouldn't be taxed twice on that (once there and then here).

Pretty confusing stuff

[LorRenee 6]

Theres also a form 1116 for foreign tax credit to make this even more confusing!

[Nich-Nick 3,354]

If your husband is in the US with a SSN then that doesn't really matter.

You just file the taxes like normal.

The written letter for being treated as a resident for tax purposes is for when you file for an ITIN.

No, that isn't correct. They need the letter. They paper file this first year.

[The Mean Lady 604]

They do need to file a paper return to make the proper election to treat her husband as a Resident Alien for tax purposes for 2012. At a minimum her husband was a Dual Status Alien but more likely a Non-Resident Alien at the end of 2012. In either case they need to make the election to treat her husband as a Resident Alien for tax purposes. This can only be properly done by filing a paper return. See pages 8 through 11 of IRS Publication 519 - U.S. Tax Guide for Aliens. Here is a link to the publication:

IRS Publication 519 - U.S. Tax Guide for Aliens.

If that were the case, then why would ITINs be accepted to efile starting 2012?

It would be a pointless thing because everyone would have to include a letter.