report wife's foreign income

[Calebpinter 0]

Hello,

My wife and I got married in March and we are now in the US.  My wife has been in the US since May of 2016 so I think she technically qualifies as a resident alien since she was in the country for over 180 days.  Also, she just got her SSN in the mail.  Now that we are filing taxes I'm wondering how we report her worldwide income.  When she was in Bolivia she worked but made less than $2000 so I'm wondering if it is necessary to report it and if so, what form do we use?  Is there a way to e-file and still report her foreign income?  

 

Thanks

[Gitana 11]

yes, you have to report her bolivian income , put it on line 7 form 1040,

if this amount makes difference and increase your taxes then fill form 2555ez to exclude this income from taxation and put it on line 21 in brackets

[Calebpinter 0]

Ok, thanks for the help!

[Suss&Camm 2,213]

To use Form 2555 she needs to have been a resident at the time the income was made. If she is qualifying through the physical presence test her residency will have started on the first full day she was in the US. If you want to use Form 2555 and report the income prior to her arrival you have to add an election statement that you choose to treat her as a tax resident for the ENTIRE  year of 2016. When adding the election statement you can no longer e-file.

 

Edit: I see now that your wife must have entered as a green card holder. In this case it doesn't matter about the physical presence. The green card itself makes her a tax resident.

Edited February 21, 2017 by Suss&Camm

[Calebpinter 0]

7 hours ago, Suss&Camm said:

To use Form 2555 she needs to have been a resident at the time the income was made. If she is qualifying through the physical presence test her residency will have started on the first full day she was in the US. If you want to use Form 2555 and report the income prior to her arrival you have to add an election statement that you choose to treat her as a tax resident for the ENTIRE  year of 2016. When adding the election statement you can no longer e-file.

 

Edit: I see now that your wife must have entered as a green card holder. In this case it doesn't matter about the physical presence. The green card itself makes her a tax resident.

My wife actually entered as a tourist with the intention of going back to Bolivia to finish the green card process but circumstances changed and we ended up having her status changed and thus she didn't go back afterall.  Given that my wife did not enter with a green card, does that mean that even though she qualifies as a US resident for tax purposes based on the substantial presence test that we still need to add a statement saying we choose to treat her as a tax resident for the entire year?  I'm assuming that if we weren't to attach that statement we would have to file married filing separately instead of married filing jointly?

[Suss&Camm 2,213]

1 hour ago, Calebpinter said:

My wife actually entered as a tourist with the intention of going back to Bolivia to finish the green card process but circumstances changed and we ended up having her status changed and thus she didn't go back afterall.  Given that my wife did not enter with a green card, does that mean that even though she qualifies as a US resident for tax purposes based on the substantial presence test that we still need to add a statement saying we choose to treat her as a tax resident for the entire year?  I'm assuming that if we weren't to attach that statement we would have to file married filing separately instead of married filing jointly?

Yes you need to add the statement to file mfj and to treat her as tax resident for the entire year. Otherwise her Tax residency start date is her first day present in the US, and other rules apply for the dual-status year.