Tax question for K3 holder

[joe84 0]

Hi,

I am K3 holder and my husband and I are filing our taxes jointly since we were married on Dec 31 of last year.

My husband says he has to report the income I earned while I lived in my home country, but he cannot seem to find WHERE on the 1040 this should be reported?

Any help is appreciated.

Also, since I don't have an SSN, we're filing for a W7 along with the tax return. Since the SSN is left blank against my name, should the tax return be amended and filed once again after I get the SSN? Hubby says in that case, we might as well file for an "extension" and do the filing after I get the SSN.

Thanks.

[Niels Bohr 72]

You don't need to be filed jointly. You were not considered a domestic spouse, so there's no need to file you jointly. Another thing was that last year you weren't associated with the US government so there was no need for you to pay US Income Tax. I don't find it necessary for him to include you with his taxes.

You don't need to file any income tax because you were not part of the US population.

Edited March 11, 2007 by consolemaster

[joe84 0]

Thanks. But we found out that filing jointly is better because it increases the deduction.

Only if we could find out where to enter my income (which isn't much, but it has to be reported I guess).

[Niels Bohr 72]

I know you can increase deduction. However, you don't qualify as a US civilian last year. You cannot file jointly until next year.

You didn't pay any taxes to the US government last year either. If you file jointly, they may consider that tax evasion on your husband part.

Edited March 11, 2007 by consolemaster

[joe84 0]

Thanks consolemaster, but we find the following on IRS link:

http://www.irs.gov/publications/p501/ar02.html#d0e1542

"Nonresident alien or dual-status alien. A joint return generally cannot be filed if either spouse is a nonresident alien at any time during the tax year. However, if one spouse was a nonresident alien or dual-status alien who was married to a U.S. citizen or resident alien at the end of the year, the spouses can choose to file a joint return. If you do file a joint return, you and your spouse are both treated as U.S. residents for the entire tax year. See chapter 1 of Publication 519."

Regards.

[Niels Bohr 72]

This is new to me. I have to do some more research.

[agm 0]

Hi,

I am K3 holder and my husband and I are filing our taxes jointly since we were married on Dec 31 of last year.

My husband says he has to report the income I earned while I lived in my home country, but he cannot seem to find WHERE on the 1040 this should be reported?

Any help is appreciated.

Also, since I don't have an SSN, we're filing for a W7 along with the tax return. Since the SSN is left blank against my name, should the tax return be amended and filed once again after I get the SSN? Hubby says in that case, we might as well file for an "extension" and do the filing after I get the SSN.

Thanks.

Hello

Yes, you can file joint return. (and, you have only two choices....a joint return or a married separate return)

Your wife has choices of getting ITIN # by using form W7 , or, as you indicated, wait for SS number.

However, at the interview, you may have to provide your a year 2006 tax return. So, you should take look at as intruction for form W7 to apply ITIN number.

You can file a joint return, and including her income on line22 Other Income line as Income of spouse in XXXX (country name).

Then you attached form W7 on the top of the form 1040, and a declaration note expressing your nonresident spouse wish to tax as a resident.

agm

[joe84 0]

agm, thank you so much. Very much the response I was looking for.

However, at the interview, you may have to provide your a year 2006 tax return. So, you should take look at as intruction for form W7 to apply ITIN number.

They asked for 2005 tax return though, but that may be because the interview was held early on in the year.

You can file a joint return, and including her income on line22 Other Income line as Income of spouse in XXXX (country name).

Should we produce any supporting document for this?

Then you attached form W7 on the top of the form 1040, and a declaration note expressing your nonresident spouse wish to tax as a resident.

Is there anything that needs to be done after we get the SSN? Do we have to refile it or something? Also we leave the SSN blank against the wife's name, correct?

Thanks so much agm. Really appreciate it.

[joe84 0]

Forgot to ask one more thing. The wife already owes and pays taxes on this income in the home country. Does this mean we are paying taxes twice on the same income? Bummer.

[Kez/JWolf 6]

This is new to me. I have to do some more research.

Please do as the info you were giving is totaly wrong...

joe84

you do not need to file an amended return once you have your SSN... but you should advice IRS that you want to cancel the ITIN once you have your SSN, the two will then be linked...

You are allowed to earn $86,000 in foreign income before it would have an effect on your tax here and you do not pay tax twice....

What tax prep sofware are you using? it should have a section for Foreign Income...

Kez

[joe84 0]

Kez, thank you so much!!!! I use turbo tax and had accidentally overlooked this section about the Foreign Income.

Thanks again, that's a big help!

[agm 0]

Kez, thank you so much!!!! I use turbo tax and had accidentally overlooked this section about the Foreign Income.

Thanks again, that's a big help!

Hello....this is agm

For line 21, you do not need to attach supporting documents.

Now, other member was saying about form 2555 - a foreign income exclusion.... you can not use it.

Actually, you wife can not use this form. This form is for USC and/or a resident alien who has been in foreign county for long time....read an instruction for this form. Your wife is not a USC nor a resident alien for tax purpose yet.

Form 1116, this is foreign tax credit form. I am not sure if we can use this form to take an advantage of tax creidt for the tax you wife paid. It is depend on which country she lives. There is explanation of country on an instruction for form 1116.

And...... if I were you, I am not going to use TurboTax this time. This area of taxation is very complicated. Use a C.P.A......and check if a C.P.A. has an experience of Form 1116 or not.

I read that the returns filed by taxpayers by TurboTax have higher chances for IRS audits.

agm

agm

[agm 0]

Hello....this is agm again

Sorry, your husband (not your wife) ahahahhahahhah

I did not read the first thread.

Which country is he from ?????????????

agm

[Kez/JWolf 6]

Your Spouse can be classed as resident for tax purposes and never have set foot in the USA.... so yes you can use turbo tax ot any of the other programs available.... 2555 and 1116 are the correct forms to use....

Kez

[zyggy 9]

You report all of your foreign earned income on Line 7 of your 1040...

You subsequently subtract it off on Line 21 of your 1040 after you have filled in Form 2555.... And you can exclude up to $82,400 of earned income... This amount is reduced by the ratio of time that you spent in the US.. or in other words, you can exclude $225.75 each day your spouse was not residing in the US...

If you are electing to treat a non-resident spouse to be treated on a residnet spouse on your 1040, you cannot efile your return, but must write a statement of your election and include it with your 1040 and mail it with the W-7 to the Austim , Tx address on the W-7.