Tax Status Question

[Delirium 114]

Hello! I'm hoping someone could make the whole tax process a littler clearer for me.

 

My husband entered the US on October 28th and we were married on December 1st. I filed taxes on the 13th of this month and reported us to be "Married Filing Jointly" as it allowed for a greater tax deduction and will give us proof of a valid relationship for the AOS if we need it. I recently came across a few people talking about the FBAR and am concerned because I was unaware if I needed to file one. My husband's bank account remained under 10,000 USD throughout the year, but he was in the US for longer than 60 days on his K1 Visa. I'm just a little confused if I was supposed to file one or not. 

 

Thank you!

[LAS1204 6]

Out of curiosity, how did you file your taxes? I usually file mine via H&R Block for free online. I tried doing so last night but they kicked me out saying I need a tax professional because we need to file 1040NR, which I guess you can't file online.

 

Hubby (foreigner) entered the US Aug 20th, 2016 and we were married Sept 2nd, 2016. We filed AOS Oct 2016 and he was approved for his EAD only two weeks ago. He doesn't have any foreign bank accounts (that have money in it) and hasn't earned any income in the US and in his country last year.

 

Wondering what else needs to be filed tax-wise.

[Delirium 114]

46 minutes ago, LAS1204 said:

Out of curiosity, how did you file your taxes? I usually file mine via H&R Block for free online. I tried doing so last night but they kicked me out saying I need a tax professional because we need to file 1040NR, which I guess you can't file online.

 

Hubby (foreigner) entered the US Aug 20th, 2016 and we were married Sept 2nd, 2016. We filed AOS Oct 2016 and he was approved for his EAD only two weeks ago. He doesn't have any foreign bank accounts (that have money in it) and hasn't earned any income in the US and in his country last year.

 

Wondering what else needs to be filed tax-wise.

I filed through turbo tax online. They never asked me for a 1040NR (I didn't even know what that was till I looked it up right now). My husband has a SSN number so I used that to file and filed my taxes as I've done the previous years.

[dburnt 59]

The FBAR is required if the total of his accounts was over 10,000 at any time in the year (i.e. not just balance at Dec 31).  That would include any investment accounts, excluding RRSPs.

 

It's a pretty straight-forward (if tedious) form.  I completed it because I still have investments in Canada...I've been wanting to move them but keep hoping for an improvement in exchange :-(

 

Here is a link to the requirements. https://www.irs.gov/businesses/small-businesses-self-employed/report-of-foreign-bank-and-financial-accounts-fbar

 

 

Edited January 26, 2017 by dburnt

[Delirium 114]

50 minutes ago, LAS1204 said:

Out of curiosity, how did you file your taxes? I usually file mine via H&R Block for free online. I tried doing so last night but they kicked me out saying I need a tax professional because we need to file 1040NR, which I guess you can't file online.

 

Hubby (foreigner) entered the US Aug 20th, 2016 and we were married Sept 2nd, 2016. We filed AOS Oct 2016 and he was approved for his EAD only two weeks ago. He doesn't have any foreign bank accounts (that have money in it) and hasn't earned any income in the US and in his country last year.

 

Wondering what else needs to be filed tax-wise.

I looked up a 1040NR and it said you need one if:

 

Form 1040NR, U.S. Nonresident Alien Income Tax Return

You may need to file Form 1040NR if you:

• were a nonresident alien engaged in a trade or business in the United States,
• represented a deceased person who would have had to file Form 1040NR, or
• represented an estate or trust that had to file Form 1040NR.

[dburnt 59]

51 minutes ago, LAS1204 said:

Out of curiosity, how did you file your taxes? I usually file mine via H&R Block for free online. I tried doing so last night but they kicked me out saying I need a tax professional because we need to file 1040NR, which I guess you can't file online.

 

Hubby (foreigner) entered the US Aug 20th, 2016 and we were married Sept 2nd, 2016. We filed AOS Oct 2016 and he was approved for his EAD only two weeks ago. He doesn't have any foreign bank accounts (that have money in it) and hasn't earned any income in the US and in his country last year.

 

Wondering what else needs to be filed tax-wise.

If Hubby was Canadian (guessing) he would need to file with CRA (as a non-resident) to provide them with the date of his non-residency (departure date).  Although you say no "earned" income, be sure there wasn't any other taxable income (interest income, social assistance, Unemployment, etc.), which requires filing (he would get slips from Canada, but it is way too early for those to be issued.  Canada doesn't issue slips until late February).

My timing was much the same (entered in August, married in Sept) but without PR status, I couldn't file my income on the US forms (I filed Canadian as deemed resident).  Joint filed last year after my green card was approved.  This worked out much better for me, as I got a significant amount of tax paid in Canada back (I wouldn't have in the US because the credits are different)

[dburnt 59]

7 minutes ago, Delirium said:

I looked up a 1040NR and it said you need one if:

 

Form 1040NR, U.S. Nonresident Alien Income Tax Return

You may need to file Form 1040NR if you:

• were a nonresident alien engaged in a trade or business in the United States,
• represented a deceased person who would have had to file Form 1040NR, or
• represented an estate or trust that had to file Form 1040NR.

If there was no income earned in the US, this form wouldn't be needed.  If there was income earned in a different country, it is reported differently, I think

 

 

Just FYI, even the guy and H&R Block couldn't figure out how to report my Canadian income (pension and some interest when I cashed in investments).  I couldn't find a free package that addressed pension income from a foreign source at all...even Turbo Tax is poor on this

[Delirium 114]

40 minutes ago, dburnt said:

The FBAR is required if the total of his accounts was over 10,000 at any time in the year (i.e. not just balance at Dec 31).  That would include any investment accounts, excluding RRSPs.

 

It's a pretty straight-forward (if tedious) form.  I completed it because I still have investments in Canada...I've been wanting to move them but keep hoping for an improvement in exchange :-(

 

Here is a link to the requirements. https://www.irs.gov/businesses/small-businesses-self-employed/report-of-foreign-bank-and-financial-accounts-fbar

So basically, I'm in the clear? My husband had at most 8600 euros (9100 USD) in his account this year. He didn't do any work, has no houses, investments etc. The only thing I didn't do was send in a form saying that we want him to be treated as a resident for tax purposes because we filed through turbotax. 

 

[Delirium 114]

Didn't do any work in the U.S*** He worked for about 4 months in the Netherlands this year.

[dburnt 59]

14 minutes ago, Delirium said:

Didn't do any work in the U.S*** He worked for about 4 months in the Netherlands this year.

You need to report the Dutch earnings.  I can't speak to his best choice, but you would need to figure out if he needs to file a "final" return in the Netherlands.  The advantage to filing that final return in your original country is that you make use of whatever credits that country provides, and notify them of his departure date.  Also, only the Netherlands would be able to refund any tax he paid there.  If he files there, I am not sure if you can file joint in the US...however, you would still report him as your spouse on the US forms. 

 

[Delirium 114]

8 minutes ago, dburnt said:

You need to report the Dutch earnings.  I can't speak to his best choice, but you would need to figure out if he needs to file a "final" return in the Netherlands.  The advantage to filing that final return in your original country is that you make use of whatever credits that country provides, and notify them of his departure date.  Also, only the Netherlands would be able to refund any tax he paid there.  If he files there, I am not sure if you can file joint in the US...however, you would still report him as your spouse on the US forms. 

 

He did file that all of that information in the Netherlands before coming here and we received his tax information from the the Netherlands the other day actually  He's not getting a return, he actually owes like 166 euros or something for some reason. So we have that part down...I'm just trying to figure out what I need to do for the US Tax return. So far I'm under the impression that I don't need to file an FBAR, but am unclear if I need to send the IRS a letter stating that we want him to be treated as a resident for tax purposes since our return has already been filed.  

Edited January 26, 2017 by Delirium

[dburnt 59]

9 minutes ago, Delirium said:

He did file that all of that information in the Netherlands before coming here and we received his tax information from the the Netherlands the other day actually  He's not getting a return, he actually owes like 166 euros or something for some reason. So we have that part down...I'm just trying to figure out what I need to do for the US Tax return. So far I'm under the impression that I don't need to file an FBAR, but am unclear if I need to send the IRS a letter stating that we want him to be treated as a resident for tax purposes since our return has already been filed.  

My opinion only...it doesn't sound like you need an FBAR.  Not sure what you need to do for the US return...all we did was include me as spouse in the information.  I wasn't a resident in the year I arrived - I had no status (I had EAD, but that is not the same as PR) and by my calculation (for my dates), I didn't have the number of days required to be deemed resident. 

 

I honestly try to keep government forms as simple as possible, especially taxes.  I couldn't figure out how to file jointly that first year, but I also had significant income in Canada that year, and wanted to maximize my refund there.  Since I couldn't figure it out, we just left it for that first year, and filed joint the following year.  Unfortunately, I've still not been able to find tax advice that understands immigration circumstances.  Cross-border is not the same as immigration. 

 

 

[Delirium 114]

22 minutes ago, dburnt said:

My opinion only...it doesn't sound like you need an FBAR.  Not sure what you need to do for the US return...all we did was include me as spouse in the information.  I wasn't a resident in the year I arrived - I had no status (I had EAD, but that is not the same as PR) and by my calculation (for my dates), I didn't have the number of days required to be deemed resident. 

 

I honestly try to keep government forms as simple as possible, especially taxes.  I couldn't figure out how to file jointly that first year, but I also had significant income in Canada that year, and wanted to maximize my refund there.  Since I couldn't figure it out, we just left it for that first year, and filed joint the following year.  Unfortunately, I've still not been able to find tax advice that understands immigration circumstances.  Cross-border is not the same as immigration. 

 

 

Alright, thank you for your help! I hope you're able to get advice soon from someone :/ maybe a tax accountant or immigration lawyer could be of assistance? I didn't know cross-border had different regulations.

[dburnt 59]

9 minutes ago, Delirium said:

Alright, thank you for your help! I hope you're able to get advice soon from someone :/ maybe a tax accountant or immigration lawyer could be of assistance? I didn't know cross-border had different regulations.

Basically, cross-border only refers to people that live in one country and have income in another.  So you live in USA but you cross the border and work in Canada...or you live in USA and work for a Canadian company (virtually, on travel, etc.). It doesn't seem to cover people that are ending one residency and starting another.  Certainly there are a number of people that live close to a border and continue to work in the other country...it also deals with companies that have branches or subsidiaries in another country.

 

Maybe cities with a lot of immigrants might have something, but not around me.   I mean, we went to a "specialist" at H&R Block, that supposedly was an expert on dealing with Canadians in Florida...he didn't even know what any of my tax slips were (absolutely no clue) and no idea where to report any of it...or even if it was needed. 

 

Good luck.

 

Off topic...my family was originally from Breda (North Brabant)...where's your hubby from?

[Delirium 114]

Just now, dburnt said:

Basically, cross-border only refers to people that live in one country and have income in another.  So you live in USA but you cross the border and work in Canada...or you live in USA and work for a Canadian company (virtually, on travel, etc.). It doesn't seem to cover people that are ending one residency and starting another.  Certainly there are a number of people that live close to a border and continue to work in the other country...it also deals with companies that have branches or subsidiaries in another country.

 

Maybe cities with a lot of immigrants might have something, but not around me.   I mean, we went to a "specialist" at H&R Block, that supposedly was an expert on dealing with Canadians in Florida...he didn't even know what any of my tax slips were (absolutely no clue) and no idea where to report any of it...or even if it was needed. 

 

Good luck.

 

Off topic...my family was originally from Breda (North Brabant)...where's your hubby from?

 

Ahhh, I see. I imagine that does make things a little more complex. I hope it gets sorted out for you soon!  Kind of ridiculous that it's made as complicated as it is.

 

He's from Gouda!  Not too far away from Breda at all!