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

[MariaR323 199]

Side note, this "new tax law" that the OP says "the man" talked about is indeed a new law - a tax revision that went into effect 2016, sounds like it just got a little confused in the way it was explained.

You can surely amend your tax returns - no doubt. However, the wrench they threw in starting this year is you cannot file an amendment from ITIN to SSN for the sole purpose of a retroactive claim of the Earned Income Tax Credit, Child Tax Credit or American Opportunity Credit. These are credits that are refundable credits or as some people like to say "free money".

[Avery Cates 1,141]

H & R Block in Knoxville, TN

Unless you're a US Citizen filing a personal single tax return for under $20,000 annual income you should never ever step foot into an H & R Block. Even then it's dicey.

And one in Tennessee of all places... oof.

[chrisete 55]

It is not so difficult to get an ITEN. If your husband lives near ISB, have him go to the embassy along with the ITEN application form and his passport. They will notarize it for you and then you turn in that paper along with a signed statement that you want him to be treated as a resident alien for tax purposes.

That is what I did, let me know if you have any questions about the process

Also to add to this, you do not need to mail it in, you can bring the form along with your tax return to your nearest IRS office

I alreday have an ITIN from when my father passed away as his pension was in the US. From what I remember, i just went to the American Embassy in Toronto where I live and it was all done in about 30 minutes....

[Love To Teach 161]

After reading all of this, I am going to send him the W-7 to him to take to the US Embassy there in Islamabad along with his passport, etc to get it certified or whatever it is. Then he will send me that paper plus all of his tax papers from Pakistan and Serbia. (He has a business in each place.) Then I'll list his adjusted income with mine (I hope)... after I try to plow through all the IRS #######. This past year he didn't make a whole lot as this was his first year in the business. Next year might impact us more, but I'll worry about that another day (Thanks, Scarlett). I think this year we will get a good bit back cuz of what I have paid in.

Thanks for all the info, my friends!!!

Side note, this "new tax law" that the OP says "the man" talked about is indeed a new law - a tax revision that went into effect 2016, sounds like it just got a little confused in the way it was explained.

You can surely amend your tax returns - no doubt. However, the wrench they threw in starting this year is you cannot file an amendment from ITIN to SSN for the sole purpose of a retroactive claim of the Earned Income Tax Credit, Child Tax Credit or American Opportunity Credit. These are credits that are refundable credits or as some people like to say "free money".

I don't think any of those apply to us.

[amkhan 108]

we have same issue with tax, last year wife paid high amount but this year she is applying for my ALIAN TAX ID, in this way she will get good refund its simple its takes 6 weeks to issue my tax id since m not living in us not m lpr so i dont have ssn.

[Chris and ZhiJia 146]

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.

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

There is no "May" in that link, here is the Verbatim literally from the page you linked.

2. UK residence and tax

Your UK residence status affects whether you need to pay tax in the UK on your foreign income.

Non-residents only pay tax on their UK income - they don’t pay UK tax on their foreign income.

Residents normally pay UK tax on all their income, whether it’s from the UK or abroad. But there are special rules for UK residents whose permanent home (‘domicile’) is abroad.

If the person is no longer a UK Resident, they do not pay tax on Foreign income, only on UK Income. If your friends are paying tax on US Income as US Residents with UK citizenship, they are screwing themselves.

[walran 24]

There is no "May" in that link, here is the Verbatim literally from the page you linked.

2. UK residence and tax

Your UK residence status affects whether you need to pay tax in the UK on your foreign income.

Non-residents only pay tax on their UK income - they don’t pay UK tax on their foreign income.

Residents normally pay UK tax on all their income, whether it’s from the UK or abroad. But there are special rules for UK residents whose permanent home (‘domicile’) is abroad.

If the person is no longer a UK Resident, they do not pay tax on Foreign income, only on UK Income. If your friends are paying tax on US Income as US Residents with UK citizenship, they are screwing themselves.

Actually there are several "May"s. Additionally a couple of posters here from the UK have affirmed that as an issue as well.. I don't claim to be an expert on this but spoke with Maree today and she is domiciled in the US and paying taxes to the UK based on income here and with her spouse.

Not sure of the particulars but think that if she a former UK judge/magistrate and her husband a us attorney are paying it is because there is no way around it.. Not sure if they have pension money from there that affects or if it is because they have dual holdings or what. The only thing I do know for sure is that they are smart, professional, and paying. But I think they are trying to mitigate that liability through using the property experts here in the US and UK. I thought they had found one guy certified in both places but today she said they have two who talk to each other.

And that link is hardly definitive, I just pulled it up and it said "May".. From what I see in the visa process "May" encompasses a whole lot. I am now going to cancel my link to this forum as I have nothing further to comment on that hasn't been said. Unless a tax attorney versed in UK and US law cares to comment...

1. Overview

You may need to pay UK Income Tax on your foreign income, eg:

• wages if you work abroad
• foreign investments and savings interest
• rental income on overseas property
• income from pensions held overseas

Foreign income is anything from outside England, Scotland, Wales and Northern Ireland. The Channel Islands and the Isle of Man are classed as foreign.

Working out if you need to pay

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.

If you’re UK resident, you’ll normally pay tax on your foreign income. But you may not have to if your permanent home (‘domicile’) is abroad.

[aaron2020 11,651]

Actually there are several "May"s. Additionally a couple of posters here from the UK have affirmed that as an issue as well.. I don't claim to be an expert on this but spoke with Maree today and she is domiciled in the US and paying taxes to the UK based on income here and with her spouse. Does Maree have a background in US and UK taxation? What's her expertise in the area?

Not sure of the particulars but think that if she a former UK judge/magistrate and her husband a us attorney are paying it is because there is no way around it.. Not sure if they have pension money from there that affects or if it is because they have dual holdings or what. UK pensions are UK sourced, so UK taxable. The only thing I do know for sure is that they are smart, professional, and paying. Lots of people are smart. It doesn't mean they understand everything. Lots of smart people make bad and uninformed choices. All humans make mistakes. Being a magistrate and a US lawyer does not make them experts in taxation. But I think they are trying to mitigate that liability through using the property experts here in the US and UK. I thought they had found one guy certified in both places but today she said they have two who talk to each other.

And that link is hardly definitive, I just pulled it up and it said "May".. From what I see in the visa process "May" encompasses a whole lot. I am now going to cancel my link to this forum as I have nothing further to comment on that hasn't been said. Unless a tax attorney versed in UK and US law cares to comment...

1. Overview

You may need to pay UK Income Tax on your foreign income, eg:

• wages if you work abroad
• foreign investments and savings interest
• rental income on overseas property
• income from pensions held overseas

Foreign income is anything from outside England, Scotland, Wales and Northern Ireland. The Channel Islands and the Isle of Man are classed as foreign.

Working out if you need to pay

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.

If you’re UK resident, you’ll normally pay tax on your foreign income. But you may not have to if your permanent home (‘domicile’) is abroad.

Richard is a US citizen (doesn't even matter if he was a UK citizen). Richard's permanent home (domicile) is the US. Richard does not have to pay UK tax on his foreign income from the US.

The UK will only tax Richard's income from the UK.

Where is the "may?"

Instead of making assumptions, how about getting some facts?

Edited January 22, 2016 by aaron2020

[rin and john 71]

After reading all of this, I am going to send him the W-7 to him to take to the US Embassy there in Islamabad along with his passport, etc to get it certified or whatever it is. Then he will send me that paper plus all of his tax papers from Pakistan and Serbia. (He has a business in each place.) Then I'll list his adjusted income with mine (I hope)... after I try to plow through all the IRS #######. This past year he didn't make a whole lot as this was his first year in the business. Next year might impact us more, but I'll worry about that another day (Thanks, Scarlett). I think this year we will get a good bit back cuz of what I have paid in.

Thanks for all the info, my friends!!!

I don't think any of those apply to us.

Another potential route would be to file for an extension which gives you until mid-October to file your 2015 tax return. if your spouse will be in the USA prior to October, get their SSN and then file. No ITIN required.

[Love To Teach 161]

Another potential route would be to file for an extension which gives you until mid-October to file your 2015 tax return. if your spouse will be in the USA prior to October, get their SSN and then file. No ITIN required.

I just sent the I-130 papers off last week, so we are just starting the process. AND since he is from Pakistan, I anticipate that he will have AP time. So, sadly, I don't really think there is any way he would be here by October. I think he will take his W-7 and other papers to the USA embassy there in Islamabad and get all those papers certified, send them to me, then I will use them for him to apply for an ITIN number. I just dread figuring out all the other stuff about his income, foreign tax exclusion, all that....seems overwhelming, but I sure to appreciate all of your help on here!!!

[Darnell 8,478]

eh - the Vice-Consuls won't do anything with the W-7,

but

if you tell your husband to get a notarized copy of the bio page of his passport,

a Vice-Consul can do that.

It's 50 bucks, USD.

The ID requirements on the W-7 are fairly strict - the instructions do list which forms of ID on the foreign human are accepted. Check it out, when you get a chance.

[SennaBrigante 92]

At USEM, I called them to ask about what I need to do for the W-7. They said they can't process it but they can do a Seen-and-Compare, they said they don't notarize passport copies for that purpose and it was fairly recent instruction for the IRS (this was in 2014). I brought a copy of the biographic page of my passport and they just stamped something that said "Seen and Compare" and the CO signed it and put the date. It was $50 and didn't take more than 30 minutes (line was kinda long).

I think that's all I sent to my husband along with the signed forms and I was issued an ITIN a couple of weeks later.