Does my husband really have to file income taxes for 2006?

[homesick_american 1]

The more I think about this the weirder it sounds.

I called the IRS a couple of weeks ago to ask them about the sale of our house here in the UK and as an afterthought I asked them if my husband was required to file a return for the year 2006. They said yes.

His IR1 was issued on 03 October 2006 but he did not go through the POE until 29 March 2007. He was not present in the United States at all during 2006 and the visa was not activated until 2007. It just seems weird to me that he has to file income taxes for 2006.

Can anyone shed some light on this?

[Kath 0]

hi

im just wondering when you asked the question and you mentioned "husband" they assumed he was in the states already..

i am thinking the way you are too..i know when i rang the IRS about something i got changed to different people 5 times before i got the right person to answer it...

wonder if there is any accountants in here to help you out with this one...

good luck

kath

[Toledospod 0]

I remember you mentioning this in another thread and I thought it was weird to be honest. Now I'm no expert at all on this, but the way I see it, your hubby didn't actually get his IR-1 visa stamped until last month, therefore he wasn't as permanent resident until 2007, so why would he have to file taxes for last year when he couldn't even be classed as a US resident for tax purposes? Unless of course the IRS counts it from the time he actually received his IR-1 visa. I think that where you need clarification from someone who knows about this stuff.

Hope you get it sorted! I'd be curious to know myself!

[payxibka 10,047]

The more I think about this the weirder it sounds.

I called the IRS a couple of weeks ago to ask them about the sale of our house here in the UK and as an afterthought I asked them if my husband was required to file a return for the year 2006. They said yes.

His IR1 was issued on 03 October 2006 but he did not go through the POE until 29 March 2007. He was not present in the United States at all during 2006 and the visa was not activated until 2007. It just seems weird to me that he has to file income taxes for 2006.

Can anyone shed some light on this?

If you husband is the non-USC then he has no tax filing obligation until he is present in the USA.

[derekkj 0]

Derek and I had the same questions when he got his green card in December 2006. The US *does* tax green card holders even if they are living abroad. But as londonspod noted the real question is whether your husband is considered a green card holder from the date he received his visa or when he actually activated it. At the very least, if your husband is from a country that has a tax treaty with the US, you should be able to get a foreign tax credit or foreign earned income exclusion and not get double taxed. We fortunately could dodge the whold issue based on the presence test and I ended up filing Married Separate. So I never did get that question answered and am still curious.

The IRS website is pretty good for answering questions though and here is a link for the Basic Tax Guide for Green Card Holders: Understanding Your U.S. Tax Obligations:

http://www.irs.gov/businesses/small/intern...=164371,00.html

Where are the tax experts?

Edited April 20, 2007 by derekkj

[payxibka 10,047]

You are not a greencard holder until after entry......

[meauxna 15]

His IR1 was issued on 03 October 2006 but he did not go through the POE until 29 March 2007. He was not present in the United States at all during 2006

Your husband is not yet required to file. He did not become a Permanent Resident until 3/29/07 and did not meet the substantial presence test for 06, so 07 returns for him, it is.

Derek and I had the same questions when he got his green card in December 2006.

Your husband *is* required to file for 06 because he became a PR in 06---right up to the last day = count the whole year. You can still exclude any foreign income that you need to.

Super thanks for including the link!!!

A person with a visa is 'just' a person until they cross the threshold to the US. After they are admitted, they gain a status of some sort. For IV holders (IR/CR), that new status is Permanent Resident. "Just' holding a visa doesn't do anything to your tax liability.

[Yodrak 7]

homesick_american,

How have you been filing your tax returns, if any, for the past few years? married-separate or married-joint? Since you've been living in the UK there's probably been no benefit to you to file married-joint if you've been working, but just want to eliminate the possibility.

And that house - it was his alone or you owned it together?

Yodrak

The more I think about this the weirder it sounds.

I called the IRS a couple of weeks ago to ask them about the sale of our house here in the UK and as an afterthought I asked them if my husband was required to file a return for the year 2006. They said yes.

His IR1 was issued on 03 October 2006 but he did not go through the POE until 29 March 2007. He was not present in the United States at all during 2006 and the visa was not activated until 2007. It just seems weird to me that he has to file income taxes for 2006.

Can anyone shed some light on this?

[homesick_american 1]

homesick_american,

How have you been filing your tax returns, if any, for the past few years? married-separate or married-joint? Since you've been living in the UK there's probably been no benefit to you to file married-joint if you've been working, but just want to eliminate the possibility.

And that house - it was his alone or you owned it together?

Yodrak

I've been filing tax returns every year I've been here. The IRS advised me to file as single; they told me that was OK. Since I'm in the UK my filing status makes no difference whatsoever to my returns since I do not now and never have owed anything to the IRS the entire time I've been here.

The house is in both of our names, and the profit from it is not tax liable. If the gain was over $250,000 or if it was a second home, it would be. But it's not.

[Nikita2Charles 32]

I would check with a CPA. From what I understand even if your spouse is not with you, you can still file married filling separate, what it comes down to what year both of you GOT MARRIED. As such if you got married in 2006 even if it's Dec 31, 2006, you can file your taxes for '06 as married. If after Jan 1st then your status would be married. It has nothing to do when you receive the Green Card.

[homesick_american 1]

The CPA who does my dad's taxes and who did mine in 2003 when an old 401k paid out said it was OK too. Of course our 2007 returns will be filed as married; we'll just have to work out then if it's cheaper jointly or not.