2015 Taxes

[callan83 2]

Hi All,

Quick question about my 2015 taxes. I have already sent off my I-130 application and included in it joint tax returns from 2010-2014.

Throughout 2015 my wife and I lived outside the US (and did not visit either). As my wife is a US citizen, she is required to file taxes. But, as I am a non-US citizen, there is no requirement for me to do so.

My accountant has advised me that if we file jointly (or even if I file on my own) I will be liable to pay tax on all my income earned since living abroad, which is something I would rather not do.

My question is - how damaging will it be if I (1) do not file jointly with my wife for 2015 (2) do not file taxes at all?

Thank you,

David

[A'n'L 735]

1) She can file married filing separately

2) She has to file her US taxes. End of story.

[Nich-Nick 3,354]

Your wife as a US Citizen is required to file US taxes if she had any income, even if abroad. If she had no income then there is no reason to file. She would have filed Married Filing Separately.

You are not a US citizen, nor permanent resident and have no obligation to the IRS. You also had no US based earnings, so wouldn't file on your own as a nonresident.

Your accountant is wrong or else you misunderstood what he said about filing jointly. A joint return means all income earned in 2015 by BOTH of the joint filers is reported. That does not mean it is taxed. There is a Foreign Earned Income Exclusion (Form 2555 or 2555EZ) that could be filled out by either party who earned abroad and qualified. You both might qualify. Then any tax your income would have generated would be subtracted from what is actually the bottom line.

To file jointly, you would have to have a SSN or ITIN, and submit a statement signed by each of you electing for you (a nonresident) to be treated as a resident for tax purposes. That is an option allowed when one is a US citizen and the other is nonresident. It is not required to file jointly ever.

Edited April 27, 2016 by Nich-Nick

[callan83 2]

1) She can file married filing separately

2) She has to file her US taxes. End of story.

Thank you. My only concern was whether it would look bad if I had not filed jointly for 2015.

Will I be required to send any more tax returns (either for the NVC stage or interview)?

[A'n'L 735]

Thank you. My only concern was whether it would look bad if I had not filed jointly for 2015.

Will I be required to send any more tax returns (either for the NVC stage or interview)?

As long as she files as married, it's OK. You have a good reason for filing separately. I'm sure you'll be asked for 2015 tax return.

[callan83 2]

Your wife as a US Citizen is required to file US taxes if she had any income, even if abroad. If she had no income then there is no reason to file. She would have filed Married Filing Separately.

You are not a US citizen, nor permanent resident and have no obligation to the IRS. You also had no US based earnings, so wouldn't file on your own as a nonresident.

Your accountant is wrong or else you misunderstood what he said about filing jointly. A joint return means all income earned in 2015 by BOTH of the joint filers is reported. That does not mean it is taxed. There is a Foreign Earned Income Exclusion (Form 2555 or 2555EZ) that could be filled out by either party who earned abroad and qualified. You both might qualify. Then any tax your income would have generated would be subtracted from what is actually the bottom line.

To file jointly, you would have to have a SSN or ITIN, and submit a statement signed by each of you electing for you (a nonresident) to be treated as a resident for tax purposes. That is an option allowed when one is a US citizen and the other is nonresident. It is not required to file jointly ever.

Thank you Nich-Nick - my accountant advised me against filing jointly, or even filing at all, because the foreign earned income exclusion does not apply for non-US residents. I applied it in 2014 because I lived for part of the year in the US, but for 2015 I was outside the US the whole time.

[callan83 2]

As long as she files as married, it's OK. You have a good reason for filing separately. I'm sure you'll be asked for 2015 tax return.

Cool - thank you

[Nich-Nick 3,354]

Thank you Nich-Nick - my accountant advised me against filing jointly, or even filing at all, because the foreign earned income exclusion does not apply for non-US residents. I applied it in 2014 because I lived for part of the year in the US, but for 2015 I was outside the US the whole time.

Foreign spouses who have never set foot in the US can and do file jointly with their USC spouses because the USC almost always pays less taxes that way or bigger refund than Married Filing Separately. The election to be treated as a resident FOR TAX PURPOSES means in the eyes of the IRS they are residents and can have any benefit they are eligible for. Yes you would qualify for the foreign income exclusion. Read this from the IRS. https://www.irs.gov/Individuals/International-Taxpayers/Nonresident-Spouse-Treated-as-a-Resident

There is probably no benefit to file jointly for you and your spouse, especially if she excludes her foreign income and owes no taxes. Adding you can't put her lower than zero taxes. I think you did the best way as long as your accountant didn't choose Single as her filing status. Just saying it is indeed an option to file jointly with a SSN and a signed election statement.

She will need her 2015 tax return with her Affidavit of Support. Her Separate return still says "married" and gives your name as her spouse (shows relationship). It won't look bad because it was her option to file a separate return.

Edited April 27, 2016 by Nich-Nick

[callan83 2]

Foreign spouses who have never set foot in the US can and do file jointly with their USC spouses because the USC almost always pays less taxes that way or bigger refund than Married Filing Separately. The election to be treated as a resident FOR TAX PURPOSES means in the eyes of the IRS they are residents and can have any benefit they are eligible for. Yes you would qualify for the foreign income exclusion. Read this from the IRS. https://www.irs.gov/Individuals/International-Taxpayers/Nonresident-Spouse-Treated-as-a-Resident

There is probably no benefit to file jointly for you and your spouse, especially if she excludes her foreign income and owes no taxes. Adding you can't put her lower than zero taxes. I think you did the best way as long as your accountant didn't choose Single as her filing status. Just saying it is indeed an option to file jointly with a SSN and a signed election statement.

She will need her 2015 tax return with her Affidavit of Support. Her Separate return still says "married" and gives your name as her spouse (shows relationship). It won't look bad because it was her option to file a separate return.

Thank you - that makes things a lot clearer.

I may also need to fire my accountant.