Confused about Taxes (merged)

[NikLR 13,227]

In order to be eligible to elect to have your foreign earned income untaxed, you have to have a tax home in a foreign country, and you have to be a resident of that foreign country for the entire tax year or be physically present in a foreign country for at least 330 days out of a 12-month period. The idea behind the requirements is that the exclusion isn't intended to help short-term temporary workers but rather those who permanently relocate overseas.

I can't apply for that exclusion..... Please can you be more specific about MFJ?

Are you amending taxes you did this year? 2015? did you file married filing jointly with your wife? did you include her income on your taxes? Or did you file as married filing separately?

[Nathan&Cata 5]

Are you amending taxes you did this year? 2015? did you file married filing jointly with your wife? did you include her income on your taxes? Or did you file as married filing separately?

This is all confusing and we don't know what to do or where to start ......

Yeah I am trying to amend taxes I did this year....

I included my wife in my taxes but I didn't include her income.... I am reading all kind of information in visajourney and in google and I can't figure this out... It is just frustrating... For what I have read I needed to include her income and exclude at the same time her income filing the 2555 form... I don't really Know what to do...

Edited March 24, 2016 by Nathan&Cata

[NikLR 13,227]

You need a tax professional.

[Nich-Nick 3,354]

Right now the foreign wife is a non-resident alien. A US citizen and a non-resident can't file together jointly unless they also file a statement saying they wish for the wife to be treated as a resident by the IRS For tax purposes.

The US citizen can file Married Filing Separately and only report his income. That would be what he earned anywhere during the year 2015--both in U.S. AND Colombia. Taxes will be higher for Married Filing Separately because that's just how it works.

Or he can write the statement mentioned and the IRS will allow a Joint return with his non-resident wife. There are benefits of filing a joint return. Tax is a little lower. The American gets an extra $10,300 in allowances taken off his taxable income by adding on the wife. But if he files a joint return, he has to report ALL the income earned by both spouses anywhere in the world. You can not just have that extra $10,300 deduction without a catch. That means--

His US income

His Colombian income

Her Colombian income.

Then you see of He or she qualifies to exclude the foreign income. She for sure was a bonfire resident of the foreign country (Colombia). It was her tax home. She lives there and pays taxes there. She was legally allowed to work there. Maybe the American doesn't qualify to exclude his $4000 if he just popped in the country and wasn't officially authorized to live and work there and didn't pay taxes there. Let the questions guide you.

For sure she qualifies. So her income is reported but the tax it would be charged is taken off because of the Form 2555 Foreign Earned Income Exclusion. Her tax part is erased, but her extra $10,300 taken off the total taxable income for the couple gets to stay.

It may not come out as good as when you filed Jointly but hid the foreign income from the IRS, but what you did was incorrect. It will come out better than the other correct way of Married Filing Separately. It is up to you if you want to do it over or just leave it and hope the IRS never finds out you hid income from them.

Edited March 24, 2016 by Nich-Nick

[MariaR323 199]

Keep in mind... I would think you wouldn't want discrepancies between what you will say/report on the immigration forms (specifically your employment & income-related questions). So bear in mind what you report on your tax return will be looked at.

[Caleb J 1]

So I'm in the same situation here. I'm going to file taxes for both 2015 and 2014, as I was living in the U.S for 2013 . . . but now I live abroad and I have to declare my foreign income. I am at the stage where I need to send my documents to the NVC. I have a joint sponsor.

My question is how long does this tax stuff take? For me to file them how long can I get a transcript to send to NVC so I won't have any more delays? I have to file form 2555 and 1040, how long until I can send the transcripts to the NVC??