Does it matter if we get married before or after New Years for Tax purposes? (K1 Visa)

[TheRowgles 10]

Hello,

I recently entered the US at the end of November on a K1 Visa from Canada. We have yet to set a concrete date to get married (have the license already) and are wondering if it would be more beneficial to get married before the year ends so my soon-to-be-husband can file jointly and possibly get a greater return. However, I plan to also file Canadian taxes for myself as well, would I then get penalized and would that effect anything US related? I'm pretty confused about the whole topic and wondering if it would just be best to leave it until the new year to eliminate any confusion.

If anyone could shed some light on this topic, that'd be great!

[Foreign Fantasy 52]

If you were going to file jointly you would need a Tax Identification Number which if you haven't already filled out the form for takes a few weeks to receive back. If you are looking to gain a greater tax return then I would get married in the current year. If you want to avoid the hassle of the extra forms in the mean time wait till next year to file taxes as a couple. Im not sure about Canadian taxes so someone else can jump in on that. I assume it would also be easier paperwork wise if you marry next year. But as for any penalties I cannot think of any for going either route.

[LionessDeon 2,060]

I would think it best to consult with a tax accountant. There is alot of information that goes into filing taxes, i.e. income, dependents, deductions, tax bracket, filing single head of household, married filing joint, married filing single,etc.

As for immigration, it doesn't matter as long as you marry within the 90 days. If you already have the marriage license is there a time limit of when to be married by?

[Amhara 460]

You will need to get married on or before December 31, 2015 to file joint taxes for the 2015 year. However, you will need to include all of your Canadian income on your US tax return if you file jointly. I'm not sure how you would handle your Canadian taxes, but you need to look at both options. For us, MFJ will be most beneficial as my husband didn't have any income during the year.

Any Canadian income taxes you pay, you can claim as a deduction or credit (credit is more beneficial) on your joint US tax return - if you meet certain criteria.

You won't need to worry about an ITIN. You can get your SSN in time to file your taxes or file for an extension to file (if filing after April 15th). I suggest applying for SSN before getting married. Some people were able to get their SSN after marriage, but me and many others were not. If you AOS, you should be able to get your SSN the day you get the EAD.

Edited December 15, 2015 by Amhara

[heo luoi 206]

Aside from taxes there are other benefits. Im a USC. My company has greater HSA match for family. Also Family has higher contribution limits at 2x the single person. But everyones situation is different. We got married to try to get those changes into HR in time but I wasn't going to sweat it I couldnt make the window. I have heard from income tax reasons it could help but again I chose not to make that my ultimate decision why. We got her SSN after we got married and even a name change. Our license lasted an amazing like 90-180 days or something. Wish I'd had known that before hand...

[MarinaMaya 3]

I'd open turboTax and fill out taxes as a single person. Take a note of return. Then add husband and his income and take a note again.

That would be your best answer.

[newacct 688]

Yes, it matters. If you are married by December 31, 2015, you guys must file as married (Married Filing Jointly or Married Filing Separately) for 2015; if you are married afterwards, he must file as Single ffor 2015. Married Filing Jointly is generally better than Married Filing Separately. Being married and filing Married Filing Jointly may be better (marriage bonus) or worse (marriage penalty) compared to not being married and filing Single for both of you; it depends on the disparity in your incomes; there is a greater benefit to Married Filing Jointly if your incomes are very different; and less benefit (and potentially disadvantage) if your incomes are about the same. You have to calculate to see if being married is actually beneficial.

Note that if you jointly file, you will be treated as a resident for the entire year. You should be able to use the Foreign Earned Income Exclusion for the period before you moved to the US, to exclude your Canadian income up to about $95k (you would apply the 12 months before you entered the US; as long as you were outside the US for at least 330 days in a 12 month period, you can use the exclusion).

p.s. Make sure to get your Social Security Number now while you can, so that it will be simpler to file taxes.

[MariaR323 199]

Hello,

I recently entered the US at the end of November on a K1 Visa from Canada. We have yet to set a concrete date to get married (have the license already) and are wondering if it would be more beneficial to get married before the year ends so my soon-to-be-husband can file jointly and possibly get a greater return. However, I plan to also file Canadian taxes for myself as well, would I then get penalized and would that effect anything US related? I'm pretty confused about the whole topic and wondering if it would just be best to leave it until the new year to eliminate any confusion.

If anyone could shed some light on this topic, that'd be great!

Generally speaking, the filing status Married Filing Jointly is the most favorable and beneficial. In your case, it would require a more complex tax return as you would need to make certain elections by attaching statements and so forth in order to be eligible for the MFJ status. It's not that complex but does require a little more involvement.

I'd say, do the math and run the numbers with your future husband. That's the best way to get a much better idea of the benefit, or not, to filing jointly.

[newacct 688]

Generally speaking, the filing status Married Filing Jointly is the most favorable and beneficial. In your case, it would require a more complex tax return as you would need to make certain elections by attaching statements and so forth in order to be eligible for the MFJ status. It's not that complex but does require a little more involvement.

I'd say, do the math and run the numbers with your future husband. That's the best way to get a much better idea of the benefit, or not, to filing jointly.

It is generally more favorable than Married Filing Separately, but not necessarily than Single if the two people were not married. See http://taxfoundation.org/article/effects-marriage-tax-burden-vary-greatly-income-level-equality

[MariaR323 199]

It is generally more favorable than Married Filing Separately, but not necessarily than Single if the two people were not married. See http://taxfoundation.org/article/effects-marriage-tax-burden-vary-greatly-income-level-equality

That's a good article - thanks.

Yes, I agree. However, this would apply more to an established, working couple in the U.S. with U.S. taxes being withheld/paid.

In the case of the OP, and as most of the people here, we are dealing with foreign income. I can say almost 99% of the time it is most beneficial to file MFJ because that (foreign) "second income" can be excluded using the foreign earned income exclusion. For simplicity sake, basically you're taking one income that is(was) taxed at the Single rate and getting the benefit of the MFJ rate due to the exclusion.

[Nich-Nick 3,354]

Back to answering the original question, I think marrying before New Year's is probably going to be the advantage. I agree with Maria's post just before this one.

Overly simplified, the USC gets the advantage of $10k-$11k knocked off his taxable income by having a spouse whose income can be excluded. This is really the one chance to get that perk. By 2016, she will likely have US income to add to the taxable pot and she will not have foreign income to exclude, nor be eligible.

[NickD 203]

We got hitched in November, called the IRS on the fact that my wife did not have or could get her SS number, said it wasn't necessary, could claim her as an exemption, same with my new step daughter as a dependent.

No way can you get a social security card without an EDA or green card, we did apply for an EDA card, that took six months, about a year for that conditional green card. With the EDA card only a temporary SS card was issue, had to go to the SS office again when they got their green cards, then again when they received their US citizenship.

Wife paid her income taxes to her home country, checked on this as well, didn't have to claim any income here. If you don't believe this, call the IRS.

Ha, also asked about deducting our huge immigration fees, was told, tough luck.

[Nich-Nick 3,354]

No way can you get a social security card without an EDA or green card,

.

A K1 can get a SSN while their 90 day entry (I-94) is unexpired. They won't bother if there is less than two weeks left on it, so the window is the first 76 days after entry. If they miss the window, they can apply for an ITIN to use with filing taxes.