Taxes while filing CR1--What I found out this week

[aaron2020 11,651]

Note that the US also provides for a foreign earned income exclusion as an alternative to claiming a foreign tax credit. This allows for the complete exclusion from taxable for foreign earned income (eg salary) up to a limit of somewhere around USD 120K to USD 150K.

The FEIE is not available to a person who is not a USC or LPR.

https://www.irs.gov/Individuals/International-Taxpayers/Frequently-Asked-Questions-About-International-Individual-Tax-Matters#ForeignEarnedIncomeExclusion

[Adil & Jeanne 296]

don't know why he told you that

all i had to do was file W 9 with my returns, giving them the documents IRS needed like copy of marriage license and husband's birth certificate

this is not hard

the W 9 is a simple form much like a tax withholiding (short)

jointly filing is much better unless the foreign spouse has a huge income that requires you paying US taxes

[aaron2020 11,651]

don't know why he told you that

all i had to do was file W 9 with my returns, giving them the documents IRS needed like copy of marriage license and husband's birth certificate

this is not hard

the W 9 is a simple form much like a tax withholiding (short)

jointly filing is much better unless the foreign spouse has a huge income that requires you paying US taxes

He told her that because he's a nitwit. He can file a simple tax return. Apparently, filing for an ITIN with the tax return and amending a return is beyond his abilities. The problem is that he lies.

[RJS7 5]

The FEIE is not available to a person who is not a USC or LPR.

https://www.irs.gov/Individuals/International-Taxpayers/Frequently-Asked-Questions-About-International-Individual-Tax-Matters#ForeignEarnedIncomeExclusion

But if non-resident alien elects to be treated as a US resident for tax purposes (necessary for the NRA to file jointly with USC spouse) then does the exemption not apply as it would to a normal US resident?

https://www.irs.gov/Individuals/International-Taxpayers/U.S.-Citizens-and-Resident-Aliens-Abroad---Nonresident-Alien-Spouse

[walran 24]

Thanks for info Aaron. I did not see that part, I will be doing more research soon and asking a qualified accountant.

Actually there are some times where it is dicey.. Mostly depending on what country you are from and the ramifications.. I brought my first wife over from Spain and there were no problems there. However, My friends Richard and Marie ( she came from Wales 2 years ago) have a mess every year and she ends up paying in the UK for what Richard makes here regardless of the fact that Richard is a USC.. She is probably who you should talk to as she is a former magistrate and very erudite.

I lived in Spain and Germany for about 10 years and tax laws change but I was credited for the 30% taxes I paid there but still had to pay taxes on the rest to the US for amounts over $70,0000 Often a major issue is proving the taxes paid abroad were paid and them being on a different tax calendar can create issues as well..

If you like you can send me a message and I will give you Marie's facebook and you can contact her as it appears that you both are from the UK..

[SennaBrigante 92]

I applied for an ITIN while our CR1 was being processed. I just downloaded and filled out the forms, went to the embassy with my passport and a copy of the biographic page (they did a "Seen and Compare" for $50), sent the signed forms with the passport copy to my husband and he mailed all those to IRS. We got my ITIN after a couple of days (or a week, I forget) and he filed as MFJ.

Husband also typically files through Turbo Tax but from what I recall, he wasn't able to that year because he was filing under a different category (status?) for the first time.

[Adil & Jeanne 296]

https://www.irs.gov/uac/Nine-Facts-on-filing-an-Amended-Return

amending tax returns are usually for when you discover a math error not for adding a person and deduction at a later date

do as you want but i was married 5 years before he came and got the ITIN in 2010 and filed taxes using it for 5 years

it is not difficult

internaitonal tax consultults are normally for US citizens and companyies doing business outside the US

you would not need one

you file as normal US taxpayer

[aaron2020 11,651]

Actually there are some times where it is dicey.. Mostly depending on what country you are from and the ramifications.. Wrong. It doesn't matter which country the person immigrated from. I brought my first wife over from Spain and there were no problems there. However, My friends Richard and Marie ( she came from Wales 2 years ago) have a mess every year and she ends up paying in the UK for what Richard makes here regardless of the fact that Richard is a USC.. Tell them to get a better accountant. The UK taxes based on where the income is generated. The US taxes on worldwide income. There should be no reason for the UK to tax Richard's income. She is probably who you should talk to as she is a former magistrate and very erudite.

I lived in Spain and Germany for about 10 years and tax laws change but I was credited for the 30% taxes I paid there but still had to pay taxes on the rest to the US for amounts over $70,0000 Often a major issue is proving the taxes paid abroad were paid and them being on a different tax calendar can create issues as well.. You were a US citizen with a tax home abroad. This is different, the OP is not a USC living abroad.

If you like you can send me a message and I will give you Marie's facebook and you can contact her as it appears that you both are from the UK.. Wonderful. Marie can give the OP advice on how to do it the wrong way.

Edited January 20, 2016 by aaron2020

[Ryan H 3,812]

Moved from IR-1/CR-1 Process & Procedures to Tax & Finances During US Immigration forum.

[walran 24]

Aaron. somehow you like to take exception to anything and everything that I might post on whatever forum and that is ok, I can handle it.. Actually Marie will put him in touch with a US and UK tax professional..Someone who is versed in the nuances of both countries and who is licensed in the appropriate venue able to give a qualified opinion.... FYI the UK does tax foreign earned income and can lump in your spouses income so it should be done properly and by a professional not someone "unqualified" like me and I daresay yourself....https://www.gov.uk/tax-foreign-income/overview

I have lived in Europe for 10 years and do business there still spending about 2 months a year abroad working especially in high end real estate and with an international charity that I am part of and am fairly versed ( in a general sense) in corporate and personal taxes having also been married to a woman from the EU..Previously as well that I brought her on a GC. Many of my clients are wealthy people who have property here and there and who live here part to full time or are married to USC's and to whom taxes are a major issue each year. Th is is compounded by the difference in dates i.e. paper filings for the UK are and must be filed in October and you might need some records from one country or other that may not be readily available without forethought and planning.

I don't give tax advice when I have no knowledge or basis for an opinion I refer people to a professional. I also don't pick fights when there is not point.. It just happened that I was at Richard and Marie's for dinner and they brought up the nightmare they had trying to find a good professional that was versed in US and UK tax law.. I am sure that if you are a W2 employee or have no assets or little income it is much easier.

My offer stands... Cheers

[aaron2020 11,651]

Aaron. somehow you like to take exception to anything and everything that I might post on whatever forum and that is ok, I can handle it.. Actually Marie will put him in touch with a US and UK tax professional..Someone who is versed in the nuances of both countries and who is licensed in the appropriate venue able to give a qualified opinion.... FYI the UK does tax foreign earned income and can lump in your spouses income so it should be done properly and by a professional not someone "unqualified" like me and I daresay yourself....https://www.gov.uk/tax-foreign-income/overview

I have lived in Europe for 10 years and do business there still spending about 2 months a year abroad working especially in high end real estate and with an international charity that I am part of and am fairly versed ( in a general sense) in corporate and personal taxes having also been married to a woman from the EU..Previously as well that I brought her on a GC. Many of my clients are wealthy people who have property here and there and who live here part to full time or are married to USC's and to whom taxes are a major issue each year. Th is is compounded by the difference in dates i.e. paper filings for the UK are and must be filed in October and you might need some records from one country or other that may not be readily available without forethought and planning.

I don't give tax advice when I have no knowledge or basis for an opinion I refer people to a professional. I also don't pick fights when there is not point.. It just happened that I was at Richard and Marie's for dinner and they brought up the nightmare they had trying to find a good professional that was versed in US and UK tax law.. I am sure that if you are a W2 employee or have no assets or little income it is much easier.

My offer stands... Cheers

I have been fortunate. I've been semi-retired since age 32, have assets, and a high income. My tax returns are rather complex.

[walran 24]

I have been fortunate. I've been semi-retired since age 32, have assets, and a high income. My tax returns are rather complex.

I actually was not referring to you as a W2 employee I was using the "royal" as in anyone else "you". I am happy for your success! I have been blessed financially for many years but not so much on the personal relationship side as I have a few ex-wives that loved money more than me. Including my first GC model wife from Spain that left me to raise a 7 month and 2 year old by myself. I think I could always see better than think when it came to women in my younger years

Feeling your pain on the tax returns that are complicated..No fun!

I wish you wealth, happiness, and success in all your endeavors.. Especially happiness, that is worth way more than money but it sure smooths the path.

[*Snowdrop* 604]

Aaron. somehow you like to take exception to anything and everything that I might post on whatever forum and that is ok, I can handle it.. Actually Marie will put him in touch with a US and UK tax professional..Someone who is versed in the nuances of both countries and who is licensed in the appropriate venue able to give a qualified opinion.... FYI the UK does tax foreign earned income and can lump in your spouses income so it should be done properly and by a professional not someone "unqualified" like me and I daresay yourself....https://www.gov.uk/tax-foreign-income/overview

I have lived in Europe for 10 years and do business there still spending about 2 months a year abroad working especially in high end real estate and with an international charity that I am part of and am fairly versed ( in a general sense) in corporate and personal taxes having also been married to a woman from the EU..Previously as well that I brought her on a GC. Many of my clients are wealthy people who have property here and there and who live here part to full time or are married to USC's and to whom taxes are a major issue each year. Th is is compounded by the difference in dates i.e. paper filings for the UK are and must be filed in October and you might need some records from one country or other that may not be readily available without forethought and planning.

I don't give tax advice when I have no knowledge or basis for an opinion I refer people to a professional. I also don't pick fights when there is not point.. It just happened that I was at Richard and Marie's for dinner and they brought up the nightmare they had trying to find a good professional that was versed in US and UK tax law.. I am sure that if you are a W2 employee or have no assets or little income it is much easier.

My offer stands... Cheers

Actually is your friend Marie is now living in the US then she should not usually have to pay any tax to the UK on income earned abroad - from the very page you linked to:

Whether you need to pay depends on if you’re classed as ‘resident’ in the UK for tax.

If you’re not UK resident, you won’t have to pay UK tax on your foreign income.

[walran 24]

Actually is your friend Marie is now living in the US then she should not usually have to pay any tax to the UK on income earned abroad - from the very page you linked to:

Whether you need to pay depends on if you’re classed as ‘resident’ in the UK for tax.

If you’re not UK resident, you won’t have to pay UK tax on your foreign income.

I think the links says "May" and that is the operative word.. She is living here but owns property in Wales. Married a USC about 2 years ago and is here on a GC. Claimed that according to the statute in the UK that not only is her income taxable here in the US but that Richard, her husbands income is also figured into her taxable amount.. She has gone through several tax specialists trying to get around that and I think found one in NYC that is certified in both the US and UK for taxes..

She and her husband are pretty sharp, she was a magistrate in the UK and Richard is a Dr. and attorney here in the US.

Having any tax issues with the UK I would go to them for her tax guy to save myself the legwork as I think they have gone through two previously.

If you file jointly based off what I have read you will also pay taxes on what your spouse also made. So that income depending the spouses's country made be paying taxes twice. Their and USA.

I was going to file jointly with my husband until I find the details of needing all his income for the year when he is already paying taxes.

As for amendments, I'm unsure but less contact with the IRS is something I prefer. Even though we might have gotten more back, the frustration just isn't worth it when we are already stressed enough with immigration.

Would appear from this post that this is a common issue from the UK..

[*Snowdrop* 604]

I've never heard anything like that before.

Yes, even if you are resident abroad - any income you earn in the UK is taxable - but none of your foreign earned income is taxable and your spouse's foreign earned income is not included on your taxes.

If her husband has income in the UK then that might be taxable but even then there would be tax relief available under the double taxation agreement.

Something about their story doesn't sound right.

If you find out any more specific details rather than just 'a UK statute' I'd love to know more.