Tax help - income from 2 countries in 2015 (K-1 visa)

[jmmadden 0]

I need some help. I have searched through various other threads and cannot find a similar situation. My wife arrived from Brazil on a K-1 visa in April of 2015. Married in May. She was able to find full time work beginning in August of 2015. I am unsure how to file both of our taxes. Married filing jointly, or married filing separate? I am fairly certain she needs to file taxes in both Brazil and US as she has claimed income from both countries. She has not yet declared her legal exit from Brazil. Is there anything specific she needs to do to complete her US taxes, as a Green Card holder?

I am also struggling to find a good tax accountant who is familiar with these types of situations (in the Milwaukee area). Any advice is appreciated.

Thanks.

[Nich-Nick 3,354]

If you want to file a joint return with the wife, then both of you declare worldwide income earned anywhere in the world between Jan 1 and Dec 31, 2015. It usually turns out better than each filing "Married Filing Separately"

If you want to try it yourself, I suggest you buy the cheapest version of TurboTax called Basic for around $29,99. You can download it or buy a CD and install.

You will find a section called Income that will take you through everything from jobs, contract work, self employment, interest, dividends, Way at the end is "Less Common Income". That is where TurboTax will ask if she had any foreign income.

It will guide you through Form 2555 to exclude the foreign income. She would qualify for it as a bonafide resident of Her foreign country. It will ask when you left. It will ask your foreign employer name, address and how much you earned (converted to US dollars). You will not be taxed on the foreign part.

The reason I like the installed software version is because you can do multiple returns. You can create a Joint and two Married Separate returns and compare the bottom lines to see which is most advantageous.

Publication 519 found on IRS.gov is worth a read to become informed.