How to File Tax While Wife in Family Based AOS?

[TriloByte 1,818]

Hi All,

 

My wife came to the US on K1 and we got married in September 2017. 

 

I worked full time all 2017. She did not work in the UK (where she came from) or in the US. She did, however, receive UK government assistance from Jan 2017 - about July 2017 which was about 1000 pounds a month or 6000 pounds total. She does not have any receipts for this money now.

 

Her I-765 was approved but we are still waiting for her I-485 approval. She does not have a SSN # yet (can we apply for this at this time?).

 

I know I have to file married but was not sure if I file jointly or separately. I tried to use the H&R block free online tool to get a feel for it what's going on but only became confused. Seems like jointly is the best way to go but am not sure if I am allowed to file jointly. I'm assuming we can go apply for her SSN#, which seems to be at least one requirement of filing jointly, and then wait to file until after she has it. What else is required to file jointly? Is jointly better (bigger refund or not having to pay?).

 

Any advice or knowledge that might help us would be appreciated.

Edited January 27, 2018 by TriloByte

[Wuozopo 4,293]

3 hours ago, TriloByte said:

Hi All,

 

My wife came to the US on K1 and we got married in September 2017. 

 

I worked full time all 2017. She did not work in the UK (where she came from) or in the US. She did, however, receive UK government assistance from Jan 2017 - about July 2017 which was about 1000 pounds a month or 6000 pounds total. She does not have any receipts for this money now.

 

Her I-765 was approved but we are still waiting for her I-485 approval. She does not have a SSN # yet (can we apply for this at this time?).

 

I know I have to file married but was not sure if I file jointly or separately. I tried to use the H&R block free online tool to get a feel for it what's going on but only became confused. Seems like jointly is the best way to go but am not sure if I am allowed to file jointly. I'm assuming we can go apply for her SSN#, which seems to be at least one requirement of filing jointly, and then wait to file until after she has it. What else is required to file jointly? Is jointly better (bigger refund or not having to pay?).

 

Any advice or knowledge that might help us would be appreciated.

 

She can get a SSN with her EAD card. It should come in a week after applying.

 

 Filing jointly will be your best deal because you get the extra exemption and standard deduction for her to reduce your taxable income. She has no income of her own to add to the income side. I am guessing her £6000 was like a welfare payment which is not taxable income so she would not report it as part of the worldwide income required from joint filers. Going by IRS--

Is a General Welfare payment subject to federal income taxation?

Under the general welfare doctrine of tax law, these payments are not taxable.

Edited January 28, 2018 by Wuozopo

[TriloByte 1,818]

48 minutes ago, Wuozopo said:

 

She can get a SSN with her EAD card. It should come in a week after applying.

 

 Filing jointly will be your best deal because you get the extra exemption and standard deduction for her to reduce your taxable income. She has no income of her own to add to the income side. I am guessing her £6000 was like a welfare payment which is not taxable income so she would not report it as part of the worldwide income required from joint filers.

What's the extra exemption? Can you please elaborate? Thanks for the reply!

[payxibka 10,047]

4 hours ago, TriloByte said:

Hi All,

 

My wife came to the US on K1 and we got married in September 2017. 

 

I worked full time all 2017. She did not work in the UK (where she came from) or in the US. She did, however, receive UK government assistance from Jan 2017 - about July 2017 which was about 1000 pounds a month or 6000 pounds total. She does not have any receipts for this money now.

 

Her I-765 was approved but we are still waiting for her I-485 approval. She does not have a SSN # yet (can we apply for this at this time?).

 

I know I have to file married but was not sure if I file jointly or separately. I tried to use the H&R block free online tool to get a feel for it what's going on but only became confused. Seems like jointly is the best way to go but am not sure if I am allowed to file jointly. I'm assuming we can go apply for her SSN#, which seems to be at least one requirement of filing jointly, and then wait to file until after she has it. What else is required to file jointly? Is jointly better (bigger refund or not having to pay?).

 

Any advice or knowledge that might help us would be appreciated.

Whether it is better to file Jointly or separately is dependent on many individual facts.  You can choose the one that gives you the better overall results 

[TriloByte 1,818]

6 minutes ago, payxibka said:

Whether it is better to file Jointly or separately is dependent on many individual facts.  You can choose the one that gives you the better overall results 

I gathered that much. I tried to give enough information above so that maybe someone could get a sense of what might be better. IF I can file jointly is one of the main concerns. It seems based on @Wuozopo 's response that the SSN# a is the requirement of filing jointly that I currently can't meet, however it looks like we can go apply for that and sort it out in a couple weeks. Based on HR block, jointly gets us $1900 and separately we pay $7600. 

Edited January 28, 2018 by TriloByte

[payxibka 10,047]

Just now, TriloByte said:

I gathered that much. I tried to give enough information above so that maybe someone could get a sense of what might be better. IF I file jointly was a main concern. It seems based on @Wuozopo 's response that the SSN# a is the requirement that I currently can't meet. Based on HR block, jointly gets us $1900 and separately we pay $7600. 

Have you ever heard of an ITIN?

[TriloByte 1,818]

1 minute ago, payxibka said:

Have you ever heard of an ITIN?

Yes, but i am clueless, so not sure what it is and what it means for us.

[payxibka 10,047]

ITIN can be used for any purpose a SSN is used for except work.  You can get an ITIN until she is eligible to get a SSN

 

Form W-7

[TriloByte 1,818]

Just now, payxibka said:

ITIN can be used for any purpose a SSN is used for except work.  You can get an ITIN until she is eligible to get a SSN

 

Form W-7

Wow, ok. Good to know. Thanks!

[Wuozopo 4,293]

10 hours ago, TriloByte said:

What's the extra exemption? Can you please elaborate? Thanks for the reply!

Actually, you get her exemption because she had no income at all. If she had income then no. 

 

Look at a form 1040 https://www.irs.gov/pub/irs-pdf/f1040.pdf

Second page, top line 38 is your adjusted gross income 

40. Itemized deductions (from Schedule A) or your standard deduction (see left margin)

You alone $6350. Jointly $12,700

41. Subtract line 40 from line 38

You are taking away from your income in line 38 either $6300 or $12,700

42. Exemptions. If line 38 is $156,900 or less, multiply $4,050 by the number on line 6d. 

 With her is 2x4050 or $8100

43. Taxable income. Subtract line 42 from line 41. If line 42 is more than line 41, enter -0- . 

You are knocking down your Taxable income further by  $8100.

 

Example of somebody with income of $50,000. Only 1 worked. Very simplified example.

 

Married Separate

38. 50,000 (gross income)

40. 6,350 (subtracted standard deduction)

41. 43,650 (new income figure)

42. 8100 (subtracted exemption. If she worked then only 4050 allowed)

43. 35,550 (taxable income)

Pay taxes on $35,550

tax $4863

 

Married Jointly

38. 50,000 (gross income)

40. 12,700 (subtracted standard deduction)

41. 37,300 (new income figure)

42. 8100 (subtracted exemption)

43. 29,200 (taxable income)

Pay taxes on $29,200

tax $3451

 

Which do you pick?

 

Also forget the ITIN. She is eligible for a SSN. You said her EAD has been approved.

 

 

 

Edited January 28, 2018 by Wuozopo