Tax Implications when Immigrating?

[JessieABC 159]

I've tried searching through the forums but am slightly overwhelmed by the amount of information so was wondering if anyone could perhaps link me to the right forum chain.  Google didn't really provide pertinent answers either (probably because I wasn't searching correctly).

 

My question is does POE / SS issuance start the intending immigrant's responsibility to pay for taxes in the US? For example, my husband (UK Citizen) will be completing his interview on August 16th.  We were wondering if him coming over at the end of the year will require him to pay taxes for 2017.  We're currently planning for January 2018 just to be safe and for him to have time to sort out his affairs.

 

Also, if we are married and filing jointly for the 2017 tax year, and he's already paid tax in the UK for most of the year - how would this transition?  Does anyone have any familiarity with what he might need to gather as proof of income/taxes since his company prepares this for him in the UK and there are no W2s?

 

Any insight or guidance would be greatly appreciated - thanks in advance!

[Wuozopo 4,293]

There is a VJ forum all about taxes. Scroll down the forum list.

 

 In a nutshell, if he earns no money in the US between his POE and Dec 31,  then he has no income to tax. Unemployed people or very low earners don't have to file. You of course will have to file 2017 as  Married Filing Separately like you probably did in 2016 since your married in 2016.

 

 But you also have an option to file a Joint return. In that case, both of you have to list your 2017 income, even his earned in the UK. But there is a tax form called Foreign Earned Income Exclusion (Form 2555EZ) that he can file as part of your tax return. It knocks out any US tax from money earned while resident in a foreign country (UK). You will almost certainly come out better than you filing separately and him filing nothing. You can file jointly whether he arrives at POE in Dec 2017 or Jan 2018 because you are married. He will need a SSN which doesn't always go smoothly. You won't be able to complete your return and get submitted until you have a SSN to put on it but hopefully that will happen before April when tax filing is due.

 

Now you know income tax is way more complicated than two paragraphs, but that ought to help you with your planning.

[JessieABC 159]

Thanks to all! Will probably do some more research. For some reason I thought there was additional fine print regarding Poe! This was really helpful so appreciate the information!

[Wuozopo 4,293]

3 hours ago, JessieABC said:

Thanks to all! Will probably do some more research. For some reason I thought there was additional fine print regarding Poe! This was really helpful so appreciate the information!

 

Foreign spouses who have never stepped foot in the US file joint returns with US spouses, so his POE date doesn't really matter if you choose to file jointly and save some tax money. The foreign spouse who remains outside the US can't get a SSN, but can get an ITIN. 

 

Read from the IRS.GOV website. Publication 519. Tax Guide for Aliens