W-4/tax filing status with K1 spouse

[am1996 0]

Again, in the vast majority of the situations out there, people use large tax refunds as a financial planning tool because they do not have the financial discipline required to set money aside every month. If that's the case, it is a rather expensive way to accomplish your goals, since you are simply letting the government hold the money for you interest free. Instead, that money could be used either to pay down your debts and, in the process, reduce interest charges, or to be placed in a high interest bearing account.

Regardless, this is all beyond the scope of this thread. If you are interested in learning ways to supplement your income or to organize your finances, you may want to check out websites such as www.fatwallet.com (Finance forum), which focus on these topics.

Edited February 12, 2007 by am1996

[Kez/JWolf 6]

Thank you for your concern for my finances.... But as I work for a very large Bank and have a masters degree in business and finance I dont think I need your advice...

As I said for some the discipline you talk of does not exist... to you it may seem fool hardy but to others it is a once yearly lifeline... do not be so quick to judge...

Kez

[TracyTN 237]

The sky is blue.

Argument in 3...2...1...

[am1996 0]

The "you" was a hypothetical you. It was not directed specifically at you, Kezzie.

As for those lacking the discipline, it is never too late to acquire it. The vast majority of the people engaging in these poor financial practices simply do not realize the cost that is associated with their behavior. They certainly have the prerogative to do whatever they choose with their money, but the issue we are discussing here does not exactly require high financial wizadry or a lot of time/effort.

If you (again, a hypothetical "you") have a bank account, why would you want an account that pays, let's say, 2%APY on your savings if you can get an equivalent account that pays you 5% or 6%APY? If you are trying to save up for something, instead of collecting a large tax refund at the end of the year, reduce your withholdings and have the difference automatically deposited into an account dedicated to that goal.

Many of us out there have used these very simple financial techniques as well as the slightly more advanced ones (such as borrowing money from credit cards at 0%, putting the proceeds in FDIC insured interest bearing accounts and collecting the interest) to supplement our incomes by thousands of dollars every year.

Edited February 12, 2007 by am1996

[Kez/JWolf 6]

Saddly this will never happen for some people.... they have the best of intentions but life has a bad habbit of getting in the way... and if have money withheld from their taxes is the only way for them to have a sum of money at the end of the tax years then better that than no lumpsum at all....

Kez

[payxibka 10,045]

[Kez/JWolf 6]

Maybe it is time for me to leave VJ.... I am fed up with people who think because 2 people are having a discussion that it is going to turn into a fight.... and then others come along and watch...

Well sorry to disapoint you all but I will not be posting again in this thread..... go find your entertainment some where else... or better still grow up..

Kez

[TracyTN 237]

Well excuse me for trying to bring some levity in here.

I remember you, rebecca and am having what I considered to be a downright fight in another thread. I didn't want this one to go that way, so I cracked a joke.

Personally, I'm getting sick of what VJ has become too. But not because of people posting popcorn emotes or cracking jokes.

[kitkat1 5]

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.

This is very misleading.

He came on a K1, they married, and he is adjusting status. His visa expiration plays no role now as it was valid for his one entry into the country. He is not out of status. Having an EAD is not a prerequisite for getting a social security card. He can get one now that indicates he requires DHS authorization to work. Since he came on a K1, he IS planning to stay in the country. And you can't claim "single" on a W4 or tax return if you are married.

Bobogirl, sounds like it would be wise to chat with an accountant to be sure you are handling your W4 correctly.

[payxibka 10,045]

This is very misleading.

He came on a K1, they married, and he is adjusting status. His visa expiration plays no role now as it was valid for his one entry into the country. He is not out of status. Having an EAD is not a prerequisite for getting a social security card. He can get one now that indicates he requires DHS authorization to work. Since he came on a K1, he IS planning to stay in the country. And you can't claim "single" on a W4 or tax return if you are married.

Bobogirl, sounds like it would be wise to chat with an accountant to be sure you are handling your W4 correctly.

kitkat1,

Actually on a W-4 if you want more withheld from your check for whatever reason (want a big refund, you have other taxable income that is not withheld on (rental income, interest, dividends), etc..) there is no restriction to claiming single and zero. In fact you can also direct additional funds to be withheld above the amount calculated based on the tables.

What is put on a W-4 may or may not correlate to your proper filing status when you prepare your 1040.

Edited February 12, 2007 by fwaguy

[am1996 0]

And you can't claim "single" on a W4 or tax return if you are married.

Correct, but you can still claim "married, but withhold at the higher single rate," which will accomplish the same goal as marking "single" on the W4.

Bobogirl, sounds like it would be wise to chat with an accountant to be sure you are handling your W4 correctly.

I suppose it never hurts to chat with an accountant (just like it never hurts to chat with a professional about anything), but completing W4's doesn't require any advanced tax analysis. Most people just use IRS' own free withholding calculator (http://www.irs.gov/individuals/article/0,,id=96196,00.html) or just one of the numerous low cost tax preparation software packages (TurboTax, TaxAct, TaxCut, etc...) which also calculate and print out W4's for you. If your situation changes throughout the year or if you just find that the employer is not withholding enough tax (or is withholding too much), you can always easily adjust your withholdings by filing a new W4. Edited February 12, 2007 by am1996

[bobogirl 0]

My husband already has a social security card that indicates he needs authorization to work. He is currently waiting for his EAD; it's in process. The W-4 is confusing because it mentions nonresident aliens, and I wasn't sure if that is his status until he gets the green card (as Kitkat said, he is not out of status because his I-485 was submitted before the K1 visa expires). The W-4 appears not to treat spouses that are nonresident aliens the same way as a resident spouse, so it made me confused about whether we are actually "married" in the eyes of the IRS. But anyway, once he has his EAD I guess we should both be able to claim each other on our W-4s.

[kitkat1 5]

And you can't claim "single" on a W4 or tax return if you are married.

Correct, but you can still claim "married, but withhold at the higher single rate," which will accomplish the same goal as marking "single" on the W4.

Bobogirl, sounds like it would be wise to chat with an accountant to be sure you are handling your W4 correctly.

I suppose it never hurts to chat with an accountant (just like it never hurts to chat with a professional about anything), but completing W4's doesn't require any advanced tax analysis. Most people just use IRS' own free withholding calculator (http://www.irs.gov/individuals/article/0,,id=96196,00.html) or just one of the numerous low cost tax preparation software packages (TurboTax, TaxAct, TaxCut, etc...) which also calculate and print out W4's for you. If your situation changes throughout the year or if you just find that the employer is not withholding enough tax (or is withholding too much), you can always easily adjust your withholdings by filing a new W4.

Right. I meant single as in not married as opposed to a single dependent.

True, completing a W4 isn't rocket science. But since the OP is looking for clarification on her husband's tax filing status and the impact on her, certainly wouldn't hurt.

Also, bobogirl, not that it matters but just for clarification, the K1 "expires" the minute he walks through the POE. He's not out of status because he married you within 90 days. If you don't submit the AOS for a year, he's still not out of status.

[payxibka 10,045]

My husband already has a social security card that indicates he needs authorization to work. He is currently waiting for his EAD; it's in process. The W-4 is confusing because it mentions nonresident aliens, and I wasn't sure if that is his status until he gets the green card (as Kitkat said, he is not out of status because his I-485 was submitted before the K1 visa expires). The W-4 appears not to treat spouses that are nonresident aliens the same way as a resident spouse, so it made me confused about whether we are actually "married" in the eyes of the IRS. But anyway, once he has his EAD I guess we should both be able to claim each other on our W-4s.

The IRS definetly taxes resident aliens and non-resident aliens differently. It has nothing to do with your marital status. If you are married then you are "married" in the eyes of the IRS. Your resident vs. non-resident alien status is dependent on you passing one of the two tests that being the "Green Card" test or the "Substantial Presence test.

[am1996 0]

My husband already has a social security card that indicates he needs authorization to work. He is currently waiting for his EAD; it's in process. The W-4 is confusing because it mentions nonresident aliens, and I wasn't sure if that is his status until he gets the green card (as Kitkat said, he is not out of status because his I-485 was submitted before the K1 visa expires). The W-4 appears not to treat spouses that are nonresident aliens the same way as a resident spouse, so it made me confused about whether we are actually "married" in the eyes of the IRS. But anyway, once he has his EAD I guess we should both be able to claim each other on our W-4s.

For your purposes, the IRS only cares about your husband's immigration status insofar as it affects his tax withholding. In other words, if in 2007 your husband will be a US resident for tax purposes, he should consider completing the W4 as a US resident right now. That should ensure correct tax withholding throughout the year.