US taxes while in I130/IR1/CR1 proceedings

[AshleyLCBaker 7]

Breathe, you're not in trouble and you're NOT STUPID. You don't need to call anyone. File amended returns for the last three years using 1040-X and any schedules, such as to claim foreign income exclusion because you are and were a bona fide Australia resident. You probably won't have to pay penalties since you probably won't have a tax liability as a result of the amended returns, unless you have enough income that doesn't fall under the exclusion. Use the amended returns for your Affidavit of Support and have hubby take the correct 2012 return to the interview. Breathe again.

Ok, thanks so much! I don't look forward to having to fill out all those forms again, but at least this will be one less thing to worry about!

[Hilario 13]

Hilario, if she has a US Social Security number there's no reason to file a W-7. If the SSS is something other than a typo for Social Security (that is, the US kind), I apologize. The documentation you have sounds like it will be OK. You don't have to send in your passport if you have enough other documentation that you can send as originals or issuing-agency-certified copies.

Of course! As a corporate trainer I know that where one has a question and asks it, ten have the same question and didn't ask.

Yah Speedwell the SSS card is her social security card in the Philippines, she is getting that updated as well as her passport, that's why I am hoping her birth

certificate and voter id will do the trick.

[N-o-l-a 7,168]

Nola, you may also fall under the foreign income exclusion... in fact I've been reading about it and I am almost certain you do. Read about it on the IRS site and decide. It depends on certain foreign residency and income source considerations. There is an extra form you must file but it's just one or two pages and pretty straightforward.

I have a weird situation that I need to do more research on or get my mom's CPA on. The only income I had in 2012 was an annuity I cashed out in America or rather had the financial planners cash out.

[AKSinghSingh79 143]

AK, your situation may be different because your husband has a SSN. My husband did not have to provide documentation of his foreign income because of the amount and because it all fell under the foreign income exclusion (he had to specify a fairly exact amount though and provide the source's contact information, which is a government agency in the UK). I'm pretty sure that your husband may also fall under the foreign income exclusion, which has different documentation requirements. Please have a quick consultation with a CPA experienced with immigrant spouse matters. If one isn't available in your area, call one in a big immigrant city like Houston or LA or New York and ask to have a phone consultation, even if you have to pay a nominal fee.

The limit is $95,000 for income earned abroad right? If that is the case, my husband's income will fall far below that amount. The amount he earns in Indian rupees translates to a low amount in U.S. dollars. I read through the IRS foreign earned income form and it is very confusing to me. I definitely don't trust myself to do this solo. Called around a few places. Finally was able to locate an office in my own city that claimed they had experience with immigrant spouses. So we shall see.

[Roosha 51]

@AKSinghSingh

The IRS still hasn't finished processing my returns so I can't give you first hand information but my brother (also a USC) who lives and works in Dubai has filed his taxes the past two years and he never sent in any pay stubs or any kind of proof of income, it's just what he claimed on the forms, and everything was processed fine. So I really don't think you need that paperwork.

Oh and thanks so much for this thread Speedwell! Hope it'll come up in lots of searches since we see this question so much.

Edited February 21, 2013 by Roosha

[Nich-Nick 3,354]

Speedwell, I am really curious as to how much you paid because the explanation is the same that we post year after year here on VJ. I have no clue what people charge to do taxes, so kinda wondered.

**For those abroad needing an itin, there are some changes this year and some foreign locations where they can be obtained if convenient. Documents are presented abroad and do not have to be mailed to the US.

IRS staff at the US embassy in Beijing, Frankfurt, London, and Paris.

Acceptance Agents Outside of the U.S. In various countries

Belgium Brazil Canada Dominican Republic Germany

Guam Hong Kong Israel Italy Japan

Mexico Netherlands New Zealand Norway Philippines

Portugal Puerto Rico Singapore United Kingdom Venezuela

Link to those addresses found here http://www.irs.gov/Individuals/Acceptance-Agent-Program

**For those who want do their own using TurboTax, here's a VJ thread to help you step by step. TurboTax help for Joint filing- 2012 For newly married in 2012 with foreign income

It will also help those already married and not in the country who want to file jointly do the tax forms. It doesn't go into getting the itin.

Edited February 21, 2013 by Nich-Nick

[speedwell 224]

Speedwell, I am really curious as to how much you paid because the explanation is the same that we post year after year here on VJ. I have no clue what people charge to do taxes, so kinda wondered.

Too much, but I had other issues as well that had nothing to do with immigration.

[johnjurewicz 1]

Folks, I wanted to clear up some confusion about how a USC must file taxes with a non-resident alien spouse. I just paid a CPA a lot of money to do my taxes, and part of the reason he was so expensive was he knew what he was about when it came to immigrant issues. I learned the following things:

0. You may not file married for tax year 2012 if you were unmarried on December 31, 2012, even if you got your final divorce decree the day before.

1. You MUST file married if you are married on December 31, 2012. Don't believe H&R Block! There is ONE exception, according to the IRS: if the NRA (non-resident alien) has not lived or made income in the US for the tax year, AND the USC (citizen/permanent resident/resident alien) has dependents (children, parents, others they will claim on their tax forms), the USC is permitted to file as Head of Household, even though it is technically a single status. If you think this applies to you, go to the IRS site and do your research and make sure you qualify. Filing as Single without Head of Household will not apply to anyone who is married.

2. Married filing joint will usually reduce your tax burden or get you a bigger refund. If you do this, and your NRA spouse does not have a tax ID number (SSN or ITIN), then you must submit a W-7 with appropriate documentation on paper along with your paper tax filing to the special Austin address for ITIN filings. The NRA will be treated as a resident for tax purposes and write a letter to that effect to attach to the tax filing (PM me if you want the wording my CPA used). Their income will fall under a Foreign Income Exclusion of 95K USD for year 2012, meaning that they will be taxed on all income over that amount they made overseas, as well as on all their US income. Documentation for the W-7 must be ORIGINAL or a copy CERTIFIED BY THE ISSUING AGENCY, not certified by a notary public. UK residents may legally hold two passports at the same time, so it may be worth getting one and sending the other. Dual citizens may send the passport that they aren't using for Immigration. Others should examine the instructions for the W-7 to see what documentation is acceptable.

3. Use married filing separately if you don't qualify for single head of household and you don't want to bother with an ITIN, or if other circumstances make it necessary for you to file separately. This is the easiest. Put your own information as if you were filing taxes by yourself. You must do two things: add your spouse's name in the appropriate field, and write NRA in the field for the SSN/ITIN. Be careful because there are many circumstances that may make it necessary for the NRA to also file a US tax return in their own right: substantial presence in the US, work or doing business in the US, investment or other income in the US, providing more than half the support for a US dependent, and so forth. The NRA will still need to file taxes in their home country if required.

I'm not a CPA or your lawyer.

WOW! Thanks again from a junior member! This is literally worth it's weight in GOLD!

Question: I am USC self-employed and married Chinese Citizen Nov. 2011. My wife has never been to USA and did not have any employment in China or USA since we were married. We are still in CR1 proceedings (package left NVC and headed to Guangzhou Feb 7 2013).

Can I still file as Single head of household if a have a 9 y/o dependent son living with me full-time?

From the excellent write-up - it seems Single Head of Household is correct for me?

[speedwell 224]

WOW! Thanks again from a junior member! This is literally worth it's weight in GOLD!

Question: I am USC self-employed and married Chinese Citizen Nov. 2011. My wife has never been to USA and did not have any employment in China or USA since we were married. We are still in CR1 proceedings (package left NVC and headed to Guangzhou Feb 7 2013).

Can I still file as Single head of household if a have a 9 y/o dependent son living with me full-time?

From the excellent write-up - it seems Single Head of Household is correct for me?

That'll be ten thousand electrons worth of gold

I am pretty sure you qualify, but look at the IRS site too before you decide!

[pascanda 13]

Great post. Now, my husband and I got married July 2012. He didn't earn any foreign income, has never been to the US. How do I file without getting him an ITIN? He can't send his passport as they only issue one, he's mailing me his national ID card but other than that, I don't have anything else.

Your help is much appreciated.

[CarlosAndSveta 808]

WOW! Thanks again from a junior member! This is literally worth it's weight in GOLD!

Question: I am USC self-employed and married Chinese Citizen Nov. 2011. My wife has never been to USA and did not have any employment in China or USA since we were married. We are still in CR1 proceedings (package left NVC and headed to Guangzhou Feb 7 2013).

Can I still file as Single head of household if a have a 9 y/o dependent son living with me full-time?

From the excellent write-up - it seems Single Head of Household is correct for me?

Here is a link to a tool on the IRS website that helps you determine your filing status:

What is My Filing Status?

[johnjurewicz 1]

Here is a link to a tool on the IRS website that helps you determine your filing status:

What is My Filing Status?

Wow - you guys are so cool - thank you!

I ran the questionnaire and I will file as head of household!

[speedwell 224]

Great post. Now, my husband and I got married July 2012. He didn't earn any foreign income, has never been to the US. How do I file without getting him an ITIN? He can't send his passport as they only issue one, he's mailing me his national ID card but other than that, I don't have anything else.

Your help is much appreciated.

pascanda, without enough documentation to support a W-7, you will have to file separately unless you have dependents, then you might qualify to file as head of household.

[xander1 0]

As per the W-7 instructions (http://www.irs.gov/pub/irs-pdf/iw7.pdf), you can have the embassy certify a copy of your documents. They do charge something like $50 but in my case it is worth it. I wouldn't want my wife to send her passport because I hope she will be using it soon! I recommend reading the W-7 instructions carefully - will save you from spending a lot on an expensive accountant and it's not THAT complicated

[shira 4]

As per the W-7 instructions (http://www.irs.gov/pub/irs-pdf/iw7.pdf), you can have the embassy certify a copy of your documents. They do charge something like $50 but in my case it is worth it. I wouldn't want my wife to send her passport because I hope she will be using it soon! I recommend reading the W-7 instructions carefully - will save you from spending a lot on an expensive accountant and it's not THAT complicated

American embassies and consulates will not certify or authenticate foreign documents. The only thing they'll do is notarize a copy of the document (which means, "I, a member of the consulate staff, hereby witness that John Doe is asserting that this is a copy of the original passport.") The IRS will NOT accept such a notarization as a "copy certified by the consulate."

Please note also: Although the Foreign Earned Income Credit does allow you to exclude up to (approximately) $95,000 of the foreign spouse's earned income, this money is subtracted from the BOTTOM of the tax scale, not the top. For example, suppose your foreign spouse earned $5,000, and your marginal tax rate is $28%. Then your tax savings will be $500 (the $5000 is taken out of the 10% bracket), not $1400.

Another way to say this is: compute the income tax on (A) the excluded income alone, and on (B) the total income, (not excluding the foreign earned income). Then your tax is B - A.