Help! Taxes with k-1 visa spouse

[baniners 2]

I've tried looking at several threads but the whole thing is so confusing ;; sorry, if anyone can help me out it would be AMAZING.

 

My then-fiance entered the US on 10/22/17, and we got married on 10/30/17. His EAD/SSN arrived around 1/21/18. Interview has not been given a date yet. He has not worked since entering the US but he did have income in Canada before he moved here. He plans to have his accountant file his taxes for Canada.

 

I see that most people suggest MFJ, and I understand that there is no e-filing for that, so I would just have to mail it in, but I did try it on TurboTax before and it was maaad confusing, so I have a couple questions..

 

1. MFJ as I understand requires you to report world wide income and treats your spouse as a US Resident for the entire tax year? And with that I read that you need to attach a statement as well as a foreign income exclusion form. My question is on the exclusion... where they ask if you were a resident for the entire tax year (Jan 1 - Dec31) he would put "No" because he left in October? He also would not pass the physical presence test because he was in Canada for ~290 days out of the 330 days required to pass that test. Because of those, he would not be able to qualify for the exemption.. and according to turbo tax that's over $6000 in taxes due. 

 

2. MFS - I see that people generally don't recommend it, but I'm not sure why. If I file as MFS, I can still get a return. My husband obviously had no U.S. income in 2017, would he still need to file? And would MFS cause any issues for the Green Card interview? To me, MFS looks much less of a hassel, but if someone has a similar experience, could you tell me how you handled it?

 

Thank you so much!!

 

 

 

 

[stm 61]

I just filed taxes with my wife for 2017 on turbo tax and was accepted.

I agree there things on turbo tax a little confusing about exemptions. I read the official files about exemptions and I find it more easier. Go look at the document for exemptions and it's instructins.

For me I don't meet the substantial presence and no green card. I came in November 2017.

So what I did is I filed with her I used turbo tax and the free version. I don't have money abroad...so she just filed jointly (you can do that on TurboTax) and added her w-2 only ..for me I just entered required information. Took us one day and no fee :v

And they send us that documents were accepted by irs and state also.

[stm 61]

For u u will need to pay TurboTax fee to upgrade so u can get to enter info his money abroad and that complicated stuff that I don't have.

The issue was for me is I don't have health coverage...I can help at that point and tell u what I did ..about foreign account and money abroad, there is a document to file , I remember I read about it but it didn't apply to me at the end so I just neglect it..

Something to know, for me I have an exemption for health coverage because I am not resident alien and married to us citizen and we are filing jointly and also because I didn't have a Continuous gap of 3 month non insured, so when I went on TurboTax there is a box to check saying I am not legal us citizen it will give an exemption for health coverage for all the year and fill the adequate form for u.(i forgot what is the form number).

So basing on ur entries TurboTax chooses the forms and fill them for u and show u at the end everything before u file..but I recommend that u read more about instructions because there things confusing about exemptions of health coverage and I chose what I think it is the best..but they accepted all so I a. Fine..we are waiting for the 💰

[baniners 2]

8 minutes ago, stm said:

I just filed taxes with my wife for 2017 on turbo tax and was accepted.

I agree there things on turbo tax a little confusing about exemptions. I read the official files about exemptions and I find it more easier. Go look at the document for exemptions and it's instructins.

For me I don't meet the substantial presence and no green card. I came in November 2017.

So what I did is I filed with her I used turbo tax and the free version. I don't have money abroad...so she just filed jointly (you can do that on TurboTax) and added her w-2 only ..for me I just entered required information. Took us one day and no fee :v

And they send us that documents were accepted by irs and state also.

 

Just now, stm said:

For u u will need to pay TurboTax fee to upgrade so u can get to enter info his money abroad and that complicated stuff that I don't have.

The issue was for me is I don't have health coverage...I can help at that point and tell u what I did ..about foreign account and money abroad, there is a document to file , I remember I read about it but it didn't apply to me at the end so I just neglect it..

Something to know, for me I have an exemption for health coverage because I am not resident alien and married to us citizen and we are filing jointly and also because I didn't have a Continuous gap of 3 month non insured, so when I went on TurboTax there is a box to check saying I am not legal us citizen it will give an exemption for health coverage for all the year and fill the adequate form for u.(i forgot what is the form number).

So basing on ur entries TurboTax chooses the forms and fill them for u and show u at the end everything before u file..but I recommend that u read more about instructions because there things confusing about exemptions of health coverage and I chose what I think it is the best..but they accepted all so I a. Fine..we are waiting for the 💰

Ahh, I see. I think having no income abroad makes it a lot easier. When I entered his income on Turbo Tax they said I would need to print out my return and fill out a form that they do not provide.   and it said that I would owe taxes even though he will pay his taxes to the Canadian government, and it looks like we don't qualify for the exemption as well. It's very frustrating.

[stm 61]

Understood. It seems to be more complicated in your case. But As long as I know, If you pay your taxes abroad you will no pay any here..I am pretty sure of that.. So try to find out what you need. Sorry I can"t hwlp more at this point

[tevans2 27]

On 2/5/2018 at 7:29 AM, stm said:

I just filed taxes with my wife for 2017 on turbo tax and was accepted.

I agree there things on turbo tax a little confusing about exemptions. I read the official files about exemptions and I find it more easier. Go look at the document for exemptions and it's instructins.

For me I don't meet the substantial presence and no green card. I came in November 2017.

So what I did is I filed with her I used turbo tax and the free version. I don't have money abroad...so she just filed jointly (you can do that on TurboTax) and added her w-2 only ..for me I just entered required information. Took us one day and no fee :v

And they send us that documents were accepted by irs and state also.

Did you file as Non-Resident Alien and send in the  "treat as resident alien" letter or was there a way to file online with turbo tax as a resident alien regardless of the green card and substantial presence status? 

[payxibka 10,045]

On 2/5/2018 at 7:19 AM, baniners said:

I've tried looking at several threads but the whole thing is so confusing ;; sorry, if anyone can help me out it would be AMAZING.

 

My then-fiance entered the US on 10/22/17, and we got married on 10/30/17. His EAD/SSN arrived around 1/21/18. Interview has not been given a date yet. He has not worked since entering the US but he did have income in Canada before he moved here. He plans to have his accountant file his taxes for Canada.

 

I see that most people suggest MFJ, and I understand that there is no e-filing for that, so I would just have to mail it in, but I did try it on TurboTax before and it was maaad confusing, so I have a couple questions..

 

1. MFJ as I understand requires you to report world wide income and treats your spouse as a US Resident for the entire tax year? And with that I read that you need to attach a statement as well as a foreign income exclusion form. My question is on the exclusion... where they ask if you were a resident for the entire tax year (Jan 1 - Dec31) he would put "No" because he left in October? He also would not pass the physical presence test because he was in Canada for ~290 days out of the 330 days required to pass that test. Because of those, he would not be able to qualify for the exemption.. and according to turbo tax that's over $6000 in taxes due. 

 

2. MFS - I see that people generally don't recommend it, but I'm not sure why. If I file as MFS, I can still get a return. My husband obviously had no U.S. income in 2017, would he still need to file? And would MFS cause any issues for the Green Card interview? To me, MFS looks much less of a hassel, but if someone has a similar experience, could you tell me how you handled it?

 

Thank you so much!!

 

 

 

 

If you decide to file MFS then unless he meets the GC or Substantial presence test or has US taxable income he has no tax filing responsibility

[sv3tka 5]

On 2/5/2018 at 5:19 AM, baniners said:

I've tried looking at several threads but the whole thing is so confusing ;; sorry, if anyone can help me out it would be AMAZING.

 

My then-fiance entered the US on 10/22/17, and we got married on 10/30/17. His EAD/SSN arrived around 1/21/18. Interview has not been given a date yet. He has not worked since entering the US but he did have income in Canada before he moved here. He plans to have his accountant file his taxes for Canada.

 

I see that most people suggest MFJ, and I understand that there is no e-filing for that, so I would just have to mail it in, but I did try it on TurboTax before and it was maaad confusing, so I have a couple questions..

 

1. MFJ as I understand requires you to report world wide income and treats your spouse as a US Resident for the entire tax year? And with that I read that you need to attach a statement as well as a foreign income exclusion form. My question is on the exclusion... where they ask if you were a resident for the entire tax year (Jan 1 - Dec31) he would put "No" because he left in October? He also would not pass the physical presence test because he was in Canada for ~290 days out of the 330 days required to pass that test. Because of those, he would not be able to qualify for the exemption.. and according to turbo tax that's over $6000 in taxes due. 

 

2. MFS - I see that people generally don't recommend it, but I'm not sure why. If I file as MFS, I can still get a return. My husband obviously had no U.S. income in 2017, would he still need to file? And would MFS cause any issues for the Green Card interview? To me, MFS looks much less of a hassel, but if someone has a similar experience, could you tell me how you handled it?

 

Thank you so much!!

 

 

 

 

The 330 day test is for any period up to the date your spouse left Canada. So for example, if he came to the US of August 1, 2017 they could use the period of August 2nd 2016 - August 1, 2017 to qualify for the 330 days. It does not have to be a full tax year, but it has to be within the last tax year and should cover a period of at least 330 days going back. 

 

In my case the foreign tax credit exclusion was more beneficial (I ended up goign TurboTax Deluxe). Try both options and see what's best. Excluding income will not eliminate the tax burden entirely, but reduce it significantly. 

[stm 61]

1 hour ago, tevans2 said:

Did you file as Non-Resident Alien and send in the  "treat as resident alien" letter or was there a way to file online with turbo tax as a resident alien regardless of the green card and substantial presence status? 

I understand what u mean..in fact I asked same questions when I read all the documents given by irs and publication about that...

But then when I filed through TurboTax I just followed instructions and do next next...that is all..I didn't include any document .

I just put info. From my wife w2 and reply question about me...so if there is any questions about any step there I can reply what I did..

In my case: 

My wife have w2 not self employed

I am except from paying insurance because it is mentioned in instructions (exemption code C)

That exemption will be done automatically by TurboTax after u reply to the question..

And I replied to a question about if I have an foreign account abroad to no..

Edited February 11, 2018 by stm

[Wuozopo 4,293]

On 2/5/2018 at 7:19 AM, baniners said:

I've tried looking at several threads but the whole thing is so confusing ;; sorry, if anyone can help me out it would be AMAZING.

 

My then-fiance entered the US on 10/22/17, and we got married on 10/30/17. His EAD/SSN arrived around 1/21/18. Interview has not been given a date yet. He has not worked since entering the US but he did have income in Canada before he moved here. He plans to have his accountant file his taxes for Canada.

 

I see that most people suggest MFJ, and I understand that there is no e-filing for that, so I would just have to mail it in, but I did try it on TurboTax before and it was maaad confusing, so I have a couple questions..

 

1. MFJ as I understand requires you to report world wide income and treats your spouse as a US Resident for the entire tax year? And with that I read that you need to attach a statement as well as a foreign income exclusion form. My question is on the exclusion... where they ask if you were a resident for the entire tax year (Jan 1 - Dec31) he would put "No" because he left in October? He also would not pass the physical presence test because he was in Canada for ~290 days out of the 330 days required to pass that test. Because of those, he would not be able to qualify for the exemption.. and according to turbo tax that's over $6000 in taxes due. 

 

2. MFS - I see that people generally don't recommend it, but I'm not sure why. If I file as MFS, I can still get a return. My husband obviously had no U.S. income in 2017, would he still need to file? And would MFS cause any issues for the Green Card interview? To me, MFS looks much less of a hassel, but if someone has a similar experience, could you tell me how you handled it?

 

Thank you so much!!

 

 

 

 

1. My question is on the exclusion... where they ask if you were a resident for the entire tax year (Jan 1 - Dec31) he would put "No" because he left in October?

Do not confuse immigration status with status for tax purposes. When you opt to treat the immigrant as a resident for tax purposes (statement you  both sign), then for TurboTax he answers each question as a resident alien. YES he was a resident the entire year (for tax purposes). 

 

2. You can file MFS and your spouse file nothing because he had no US income. It will not affect your greencard interview. It is easier MFS. 

BUT you will likely pay less taxes (or bigger refund) by filing jointly and taking the income exclusion for your spouse. Why less? Because you add an exemption and standard deduction for your spouse which lowers your taxable income and the tax that would be owed on his reported foreign income is eliminated. 

So is paying less tax worth the hassle? You decide. 

[baniners 2]

On 2/12/2018 at 11:24 AM, Wuozopo said:

1. My question is on the exclusion... where they ask if you were a resident for the entire tax year (Jan 1 - Dec31) he would put "No" because he left in October?

Do not confuse immigration status with status for tax purposes. When you opt to treat the immigrant as a resident for tax purposes (statement you  both sign), then for TurboTax he answers each question as a resident alien. YES he was a resident the entire year (for tax purposes). 

 

2. You can file MFS and your spouse file nothing because he had no US income. It will not affect your greencard interview. It is easier MFS. 

BUT you will likely pay less taxes (or bigger refund) by filing jointly and taking the income exclusion for your spouse. Why less? Because you add an exemption and standard deduction for your spouse which lowers your taxable income and the tax that would be owed on his reported foreign income is eliminated. 

So is paying less tax worth the hassle? You decide. 

You're right that I am getting really confused lol. So regardless of whether or not he was in the US or not for xx amount of days, we will still put that he was a full resident? is what you are saying.

 

So if I can file MFS and he's not obligated to file because he had no US income, then I think I'll just go with MFS in the end, I'll just get a smaller refund which I am fine with lol.  I don't want to risk something messing up and end up having to owe $6000+ in taxes.

 

Thanks so much! that was very helpful!

[Wuozopo 4,293]

1 hour ago, baniners said:

You're right that I am getting really confused lol. So regardless of whether or not he was in the US or not for xx amount of days, we will still put that he was a full resident? is what you are saying.

Yes because the IRS allows him that option because he is married to a USC.

 

Copied from the IRS:

Nonresident Spouse Treated as a Resident

If, at the end of your tax year, you are married and one spouse is a U.S. citizen or a resident alien and the other spouse is a nonresident alien, you can choose to treat the nonresident spouse as a U.S. resident. This includes situations in which one spouse is a nonresident alien at the beginning of the tax year, but a resident alien at the end of the year, and the other spouse is a nonresident alien at the end of the year. 

If you make this choice, you and your spouse are treated for income tax purposes as residents for your entire tax year. Neither you nor your spouse can claim under any tax treaty not to be a U.S. resident. You are both taxed on worldwide income. You must file a joint income tax return for the year you make the choice, but you and your spouse can file joint or separate returns in later years.

 

How To Make the Choice

Attach a statement, signed by both spouses, to your joint return for the first tax year for which the choice applies. It should contain the following information. 

• A declaration that one spouse was a nonresident alien and the other spouse a U.S. citizen or resident alien on the last day of your tax year, and that you choose to be treated as U.S. residents for the entire tax year.

• The name, address, and identification number of each spouse. (If one spouse died, include the name and address of the person making the choice for the deceased spouse.)

 

1 hour ago, baniners said:

  I don't want to risk something messing up and end up having to owe $6000+ in taxes.

You won't owe $6000. Try it both ways, correctly this time, and see if the difference is worth it. I arrived my K1 year in October like your husband . We did the election to be resident alien for the entire tax year because we didn't meet the greencard or substantial presence 183 days. It made a $2000+ difference, but that will depend on your personal income situation. 

Edited February 13, 2018 by Wuozopo