Entered U.S. on K-1 Early December, Earned $540 Through Royalties - File Taxes?

[Harinder 0]

Hey guys,

In short, I entered the U.S. on a K-1 in early December, and got married late December. Obviously because I don't have an EAD or Green Card yet I made sure to not work or put out any content (I work online) that would result in income. However I do still have a certain amount of 'royalties' coming in each month which in December amounted to $540.00.

I don't have a 1099K nor am I registered as a business (LLC or otherwise) so I don't have any tax documents regarding this income, which came in through PayPal. I understand that in this scenario it would be better for me and my wife to file separately, but I am still unsure as to if I should even file in the first place. All my other income for 2015 (January through November) was reported and taxed in Europe. I don't have an SSN or ITIN as of yet, but should be receiving my EAD soon.

Any replies with information in any direction will be GREATLY appreciated.

Thank you in advance!,

Harinder

Edited April 12, 2016 by Harinder

[Nich-Nick 3,354]

Publication 519 states:

Rents or Royalties

Your U.S. source income includes rent and ro alty income received during the tax year from property located in the United States or from any interest in that property.

U.S. source income also includes rents or royalties for the use of, or for the privilege of using, in the United States, intangible property such as patents, copyrights, secret processes and formulas, goodwill, trademarks, franchises, and similar property.

It does not sound like you had any US source income in 2015. Nor were you a permanent resident (greencard) or physically present enough days to have any IRS obligation. I would say your wife can file Married Filing Separately and you file nothing.

[Harinder 0]

Thank you for the response!

Judging from your response the crux here is that the royalties I received ARE from a U.S. based company, the same one that I've been receiving royalties from including when I lived in Europe. Taxes over the amounts received back then were reported and taxed in Europe. Is it safe to assume that, even though it's about a very small amount, I still have to file simply because it's a U.S. based company?

Edited April 12, 2016 by Harinder

[Nich-Nick 3,354]

Maybe look over this https://www.irs.gov/pub/irs-pdf/i1040nr.pdf

And the Form https://www.irs.gov/pub/irs-pdf/f1040nr.pdf

Especially "who must file". You would be a non-resident alien for 2015 and use that form if you need to report anything.

It's something I have never read or studied and I'm not going to now, but you have fun.

[Harinder 0]

I definitely will, maybe not the 'have fun' part though hahaha. Thank you so much for taking the time to look at this for me!