I am confused with this filing tax

[islandgirl80 28]

I just arrived on December 4 (K1) and we got married on December 12th. We are planning to file jointly in which case we will be taxed on joint worldwide income. In addition to the 2555EZ form, I am also seeing we need to declare (through FACTA filing) all my financial assets outside the US, including bank accounts (including their amounts), pension plans and life insurance plans with cash values, interest and dividends earned in 2014. My husband has gone from simple e-filing to me coming in and having to do a ton more forms... this is very complicated and terrifying to be honest.

Filing jointly has benefit as your husband may receive a larger return. It will be worth the trouble if:

1) Your worldwide income (and gains) was less than $99,200 last year

I have been reading about FACTA all day today; we are off to the IRS to get advice tomorrow as the fines for making mistakes are heavy when it comes to declaring anything abroad!!

It is terrifying indeed. I dont have assets like you but I had a good income. Now, I would like to know how will I be able to exempt my worldwide income? It not much but it might cause me to pay tax..lol

[Owen_London 65]

If your previous country has a tax treaty with the US, you will probably be able to tax credit for the taxes you paid there, and/or you should be able to use the foreign earned income exclusion. Tax filing in the year you immigrate can get complicated, though at least you aren't going to need to file a dual status return. You need to find a decent CPA (a certified tax advisor) or get researching yourself a bit.

As you've seen from this thread, be wary about some of the advice you read here, some people are willing to give out advice on subjects about which they know little.

Edited February 4, 2015 by Owen_London

[islandgirl80 28]

If your previous country has a tax treaty with the US, you will probably be able to tax credit for the taxes you paid there, and/or you should be able to use the foreign earned income exclusion. Tax filing in the year you immigrate can get complicated, though at least you aren't going to need to file a dual status return. You need to find a decent CPA (a certified tax advisor) or get researching yourself a bit.

As you've seen from this thread, be wary about some of the advice you read here, some people are willing to give out advice on subjects about which they know little.

Ok. Thank you for the advice. I arrive here last day of december 2014 so I am confused if I have to file or not...lol

[Owen_London 65]

Ok. Thank you for the advice. I arrive here last day of december 2014 so I am confused if I have to file or not...lol

You don't have to file, but you can choose to. You and your husband have a choice for 2014:

1. He files as "married filing separately" and you don't file.

or

2. Since you were married to a US citizen at the end of 2014, you can elect to count as tax resident for the whole of 2014. You have to include all of your income for 2014, but you can usually get credit for taxes paid in your home country to make up for this. If you make this choice, you and your husband can file as "married filing jointly".

Option 1 is easier, especially for you. Option 2 will probably mean that you and your husband owe less in taxes, though this is not guaranteed, and you'd need to run the numbers with and without the election.

Edited February 4, 2015 by Owen_London

[islandgirl80 28]

You don't have to file, but you can choose to. You and your husband have a choice for 2014:

1. He files as "married filing separately" and you don't file.

or

2. Since you were married to a US citizen at the end of 2014, you can elect to count as tax resident for the whole of 2014. You have to include all of your income for 2014, but you can usually get credit for taxes paid in your home country to make up for this. If you make this choice, you and your husband can file as "married filing jointly".

Option 1 is easier, especially for you. Option 2 will probably mean that you and your husband owe less in taxes, though this is not guaranteed, and you'd need to run the numbers with and without the election.

Thank you...