W-4/tax filing status with K1 spouse

[bobogirl 0]

My husband and I got married a few weeks ago and have submitted all his AOS paperwork. We are suddenly faced with the question of how to identify ourselves for tax status. Is he considered a "nonresident alien" until he gets his green card? There are separate instructions for nonresident aliens completing W-4s, as well as for spouses of nonresident aliens. Or, once he gets his work permit, can I claim him under the two earner/two job worksheet like any spouse?

On a different topic, will he run into problems once his K1 visa expires - if someone looks at his passport and sees that the visa is expired and doesn't know that having the application in process keeps him legal? I'm confused about his status while his application is being reviewed and processed... it feels like limbo.

These seem like silly questions, but I'm confused. Thanks for your patience.

[payxibka 10,047]

My husband and I got married a few weeks ago and have submitted all his AOS paperwork. We are suddenly faced with the question of how to identify ourselves for tax status. Is he considered a "nonresident alien" until he gets his green card? There are separate instructions for nonresident aliens completing W-4s, as well as for spouses of nonresident aliens. Or, once he gets his work permit, can I claim him under the two earner/two job worksheet like any spouse?

On a different topic, will he run into problems once his K1 visa expires - if someone looks at his passport and sees that the visa is expired and doesn't know that having the application in process keeps him legal? I'm confused about his status while his application is being reviewed and processed... it feels like limbo.

These seem like silly questions, but I'm confused. Thanks for your patience.

Not quite that simple...

He will be considered a non-resident alien until he meets the "green card' test or the "substantial presence" test (173 days in country). For 2007 he will be a resident alien based on the assumption that if he does not have his green card he will meet the substantial presence requirement.

[1HappyGuy 45]

Your husband's visa expiration date will mean that he is out of status. As to working, does he have a work permit (EAD)? If not, then he is not allowed to work. If he does, then he should be able to get a social security card. But, during this time he can not leave before AOS has been completed and he gets a green card. And, without EAD he is not legally able to work.

If he has plans to stay in America, then he will be considered a resident alien. As such, he will need to report his worldwide income on his tax returns. If you got married in 2006, you will probably have a pretty complicated tax return. If however, you are married in 2007, then you will likely be filing taxes just like all other regular citizens of this great country.

The filing status also depends on what you wish to claim for income tax withholding purposes. Take a good look at your income before deciding how to fill out the W-4 for 2007. You might want to keep it at single with zero dependents and use your refund next year to pay for a vacation.

[am1996 0]

Take a good look at your income before deciding how to fill out the W-4 for 2007. You might want to keep it at single with zero dependents and use your refund next year to pay for a vacation.

If you have any financial discipline, you will avoid the suggestion above. It should be quite obvious that those receiving large tax refunds and simply giving an interest free loan to the government.

With FDIC insured perfectly liquid money market savings accounts paying 6.0%APY's, why in the world would you want to give an interest free loan to the government? Those claiming an unrealistically low number of withholdings on their W4's to force themselves to "save" are paying a rather high price for their lack of financial discipline.

Edited February 12, 2007 by am1996

[Kez/JWolf 6]

Take a good look at your income before deciding how to fill out the W-4 for 2007. You might want to keep it at single with zero dependents and use your refund next year to pay for a vacation.

If you have any financial discipline, you will avoid the suggestion above. It should be quite obvious that those receiving large tax refunds and simply giving an interest free loan to the government.

With FDIC insured perfectly liquid money market savings accounts paying 6.0%APY's, why in the world would you want to give an interest free loan to the government? Those claiming an unrealistically low number of withholdings on their W4's to force themselves to "save" are paying a rather high price for their lack of financial discipline.

All very well if you are able to open one of these accounts.... not much help if you cant... and any money saved is better than none....

Kez

[rebeccajo 14]

Take a good look at your income before deciding how to fill out the W-4 for 2007. You might want to keep it at single with zero dependents and use your refund next year to pay for a vacation.

If you have any financial discipline, you will avoid the suggestion above. It should be quite obvious that those receiving large tax refunds and simply giving an interest free loan to the government.

With FDIC insured perfectly liquid money market savings accounts paying 6.0%APY's, why in the world would you want to give an interest free loan to the government? Those claiming an unrealistically low number of withholdings on their W4's to force themselves to "save" are paying a rather high price for their lack of financial discipline.

All very well if you are able to open one of these accounts.... not much help if you cant... and any money saved is better than none....

Kez

Kezzie.....what's the matter with you?

Why, just last week I opened up one of those accounts. You don't have yours yet?

I got a free toaster when I opened it up also.

And a flame-thrower..............

[Kez/JWolf 6]

Oh wow I really need a flame thrower.... I must hurry away and open one of these super accounts...

Kez

[am1996 0]

All very well if you are able to open one of these accounts.... not much help if you cant... and any money saved is better than none....

Kez

Why wouldn't you be able to open an account like that? For instance, HSBC Direct pays 6.00%APY until 4/30/07, 5.05% APY thereafter. There is NO MINIMUM BALANCE requirement associated with that account.

Good old Bank of America pays 5.11% for balances between $500-$49,999 and 5.37%APY on all balances above $50,000. This is NOT a promotional rate. The account must simply be affiliated with AAA or NEA (it takes one phone call to set up the affiliation).

Amboy Direct pays 5.25%APY (NOT a promotional rate) for balances of $1+ and 5.35%APY for balances of $20,000+.

Union Federal Bank pays 5.31%APY (NOT a promotional rate). There is no minimum balance requirement.

All of these are FDIC insured accounts and are available to all applicants. Why wouldn't you take advantage of them?

Further, regardless of the interest rates that you are receiving, some interest is better than none. Would it not be better to have realistic tax withholdings from your paycheck with automatic transfers into interest bearing accounts than giving an interest free loan to the government? This is all pretty basic.

Edited February 12, 2007 by am1996

[Kez/JWolf 6]

Some people have problems just opening a checking account.... so no it is not an option for everyone....

Kez

[rebeccajo 14]

That's good info on investment opportunities.

Most of us regular folks (if we have the same opinion of not wanting too much of our money being withheld and returned to us after filing our tax return) just make the necessary adjustments to our W4 and use the extra we get in our paychecks to pay bills.

[am1996 0]

Some people have problems just opening a checking account.... so no it is not an option for everyone....

Kez

This is a family-based immigration support forum, which means that at least one person is a US citizen/Green card holder. If the immigrant is having problems establishing bank accounts, why not have the US Citizen establish an account and collect the interest.

[Kez/JWolf 6]

Maybe because the USC has a bad credit score and can not get banking... it happens.. ans also some people like the idea of not being able to get at the money so if the IRS is holding it you gant get it... if its in a bank account then you can.... so it gets used..

Kez

[am1996 0]

Maybe because the USC has a bad credit score and can not get banking... it happens.. ans also some people like the idea of not being able to get at the money so if the IRS is holding it you gant get it... if its in a bank account then you can.... so it gets used..

Kez

I would assume that the same people who cannot open new bank accounts do not operate on a cash basis. In other words, they, just like the rest of us, have loans. If that's the case, why not use the excess to pay down those high interest loans and avoid interest charges instead of letting the government keep the money interest free.

Again, as long as you have at least basic financial discipline not to spend money just because it is in your bank account, you can always find a better way to handle your money than giving out interest-free loans to the government. Ironically, it is often those who can least afford to hand out interest free loans that end up doing just that!

Edited February 12, 2007 by am1996

[Kez/JWolf 6]

Exactly.... not everyone is in the position to do as you have discribed... Have you ever had to live on very little money... when your creditor base the amount you have to pay them on how much you take home in your pay packet??? I know I would rather have the money sitting in the IRS bank than have every penny I have getting eaten up by creditors an least I would have something to look forward to at tax time, then I could decied what I felt was the best thing for my family to do with the money....

Kez

[am1996 0]

Exactly.... not everyone is in the position to do as you have discribed... Have you ever had to live on very little money... when your creditor base the amount you have to pay them on how much you take home in your pay packet??? I know I would rather have the money sitting in the IRS bank than have every penny I have getting eaten up by creditors an least I would have something to look forward to at tax time, then I could decied what I felt was the best thing for my family to do with the money....

Kez

If you are trying to use a large tax refund to evade your creditors, think again! In the vast majority of the situations where the creditors have obtained a judgment against you, it is incredibly easy for them to attach it to any tax refund you may otherwise be entitled to, so you will never see the money.

In the meantime, if you are in a difficult financial situation and have creditors breathing down your neck, would it be fair to assume that the same creditors are charging you pretty high interest rates? If that's the case, you would certainly be a lot better off paying them off as quickly as possible rather than extending the payment out in perpetuity and, in the process, paying exorbitant interest charges (again, remember that creditors can easily attach your tax refund to satisfy their judgments, so you will never see the money any way).

Edited February 12, 2007 by am1996