Pending AOS, Should I get a tax preparer or DIY?

[Roy&Chanel 109]

Hi guys,

I am pending on my Adjustment of Status right now, and tax filing is near to date. I am fresh new to this so I would like to ask for some suggestions.

I do not own any property or assets in Singapore, I was not required to file tax in Singapore, husband does not have assets or property here in States other than a job.

For the year 2015, he had a job change in June, other than that there's nothing else to note. We are going to file for married jointly for taxes but would like to know if we should get a tax preparer from H&R or is it that simple to file tax DIY with TURBO TAX since we do not have any complications? We are both fresh new to this, previously he filed taxes from his parents' tax preparer and we do not want to hire the same person because she made quite a few silly mistakes such as typing his name wrong.

Thanks in advance guys!

Edited January 21, 2016 by Roy&Chanel

[MariaR323 199]

I highly suggest to avoid the big block stores like H&R Block and Jackson Hewitt - they are not the most competent and experienced preparers.

Your situation doesn't sound complicated at all so if you're willing to put some time into it and read up then you could do the filing yourself. If not, then look up another independent tax preparer in your area and ask beforehand if they have any experience with the following:

1. Want to file MFJ return with one resident spouse and one nonresident spouse

2. Nonresident spouse electing to be treated as a resident for tax purposes in order to file MFJ

3. Will need Form 2555 (this will only apply if you had any income in 2015, which isn't that clear from your original post)

Also, IRS.gov has tons of info about this topic. Do a quick search so you have an idea.

[Roy&Chanel 109]

Thanks alot for your suggestion! I intend to file it ourselves too because the tax preparer here are not very well knowledged and I saw so many bad reviews on them.

Which was why I thought H&R Block was better. Guess now I will need to spend more time on reading and file through turbotax.

[K & V 33]

I highly suggest to avoid the big block stores like H&R Block and Jackson Hewitt - they are not the most competent and experienced preparers.

Your situation doesn't sound complicated at all so if you're willing to put some time into it and read up then you could do the filing yourself. If not, then look up another independent tax preparer in your area and ask beforehand if they have any experience with the following:

1. Want to file MFJ return with one resident spouse and one nonresident spouse

2. Nonresident spouse electing to be treated as a resident for tax purposes in order to file MFJ

3. Will need Form 2555 (this will only apply if you had any income in 2015, which isn't that clear from your original post)

Also, IRS.gov has tons of info about this topic. Do a quick search so you have an idea.

My wife and I are facing a similar situation. With us it maybe a bit more simpler. My wife arrived in the US last November and did not work in 2015. She has her SSN and Green Card, so I was thinking of just DYI with TurboTax this year. What do you think?

[MariaR323 199]

My wife and I are facing a similar situation. With us it maybe a bit more simpler. My wife arrived in the US last November and did not work in 2015. She has her SSN and Green Card, so I was thinking of just DYI with TurboTax this year. What do you think?

If your wife did not work at all in 2015, neither here in the U.S. nor in the country she came from, then it sounds like you don't even need to involve the Form 2555 for foreign income. You could just file MFJ using both your valid SSNs. However, you still need to include the election statement choosing to treat the nonresident spouse as a resident for tax purposes. So you could definately use something like TurboTax and complete your return like normal. Print it and attach the election statement and mail it via Certified Mail so you have proof of mailing.

Here's a link that details how to write the election statement: https://www.irs.gov/Individuals/International-Taxpayers/Nonresident-Spouse-Treated-as-a-Resident

Going forward when you file 2016 taxes next year in 2017, there's no need for the election statement. You just need it for 2015 tax return due to the fact she is considered a nonresident for tax purposes because she made her entry to the U.S. mid-year 2015.

[K & V 33]

If your wife did not work at all in 2015, neither here in the U.S. nor in the country she came from, then it sounds like you don't even need to involve the Form 2555 for foreign income. You could just file MFJ using both your valid SSNs. However, you still need to include the election statement choosing to treat the nonresident spouse as a resident for tax purposes. So you could definately use something like TurboTax and complete your return like normal. Print it and attach the election statement and mail it via Certified Mail so you have proof of mailing.

Here's a link that details how to write the election statement: https://www.irs.gov/Individuals/International-Taxpayers/Nonresident-Spouse-Treated-as-a-Resident

Going forward when you file 2016 taxes next year in 2017, there's no need for the election statement. You just need it for 2015 tax return due to the fact she is considered a nonresident for tax purposes because she made her entry to the U.S. mid-year 2015.

Hmm, well she did have a full time job in Italy for a number of years before she resigned to move to the US. Will she have to report her foreign income made in 2015? I though i read somewhere on VJ a few months ago that immigrants did not have to report their income made in another country if they were not LPR at the time.

http://www.visajourney.com/forums/topic/571119-how-to-file-taxes-fiance-has-foreign-income-colombia/

Edited January 25, 2016 by K & V

[MariaR323 199]

Hmm, well she did have a full time job in Italy for a number of years before she resigned to move to the US. Will she have to report her foreign income made in 2015? I though i read somewhere on VJ a few months ago that immigrants did not have to report their income made in another country if they were not LPR at the time.

http://www.visajourney.com/forums/topic/571119-how-to-file-taxes-fiance-has-foreign-income-colombia/

If you want to file MFJ, yes, any foreign income needs to be reported. When you file as MFJ, you are electing to be treated as a resident for U.S. tax purposes and hence you report worldwide income for both spouses. Now, even though you are reporting worldwide foreign income it doesn't necessarily mean you will pay taxes on that foreign income. That's where Form 2555 comes into play - it is a foreign income exclusion.

If you do choose to use TurboTax, I believe that form is included in one of their versions offered. Check for it before you purchase a specific version.

[K & V 33]

If you want to file MFJ, yes, any foreign income needs to be reported. When you file as MFJ, you are electing to be treated as a resident for U.S. tax purposes and hence you report worldwide income for both spouses. Now, even though you are reporting worldwide foreign income it doesn't necessarily mean you will pay taxes on that foreign income. That's where Form 2555 comes into play - it is a foreign income exclusion.

If you do choose to use TurboTax, I believe that form is included in one of their versions offered. Check for it before you purchase a specific version.

I see, and where do you print out the Election Statement? Are you saying to mail in the ES after you file your taxes online with TurboTax?

[MariaR323 199]

You cannot e-File, you have to print a hardcopy of your tax return. Then type up the election statement, look here for what info to include in your statement: https://www.irs.gov/...d-as-a-Resident

Then print a hardcopy of your election statement and attach it to your return. Mail everything via Certified Mail so you have proof of mailing.

Edited January 25, 2016 by MariaR323

[K & V 33]

You cannot e-File, you have to print a hardcopy of your tax return. Then type up the election statement, look here for what info to include in your statement: https://www.irs.gov/...d-as-a-Resident

Then print a hardcopy of your election statement and attach it to your return. Mail everything via Certified Mail so you have proof of mailing.

After reading the wording on the IRS website "If, at the end of your tax year, you are a U.S. citizen or a resident alien and married to a nonresident alien, you can choose to treat your nonresident spouse as a U.S. resident for U.S. Federal Individual Income Tax purposes." AND "1. A declaration that one spouse was a nonresident alien and the other spouse a U.S. citizen or resident alien on the last day of your tax year, and that you choose to be treated as U.S. residents for the entire tax year"

I'm a little confused as technically she was a resident alien when she did her POE and got the I-551 stamped on her visa. She received her Green Card in December. So she was a resident alien on the last day of the year. Does this election statement apply to our situation?

[MariaR323 199]

Yes the election statement applies to your situation. You have a dual-status tax year when you have been both a resident alien and a nonresident alien in the same year. Dual status does not refer to your citizenship; it refers only to your resident status in the United States.

Your foreign spouse was a nonresident prior to entering the U.S. at POE. Once she entered the U.S. at POE, counted days physically here and received her Green Card on top of that - THEN she became a resident alien.

You must report worldwide income (including foreign income), file a hardcopy return by mail and include the election statement.