Tax Return when NRA (split)

[Mozak 12]

My husband and I live abroad. I am the US citizen and my husband is a NRA (non-resident alien). We have been married since 2015.

 

I haven't filed my tax return for this year yet and am wondering how I can do so. I am unemployed and only receive foreign rental income; and I also pay foreign taxes at the country where I reside and am also a citizen of.

 

 Because my husband is an NRA, we will file it as Married Filing Separately. 

 

But my question is, because I don't have any W2 or any other tax transcripts from previous years, will it be enough to file only the Form 1040 for my foreign rental income and deduct the foreign taxes I pay in Turkey? 

 

Thanx  

 

 

[Ryan H 3,812]

Moved from IR-1/CR-1 Process & Procedures to Tax & Finances During US Immigration forum.

[Nitas_man 3,100]

On ‎2‎/‎7‎/‎2018 at 1:46 PM, Mozak said:

My husband and I live abroad. I am the US citizen and my husband is a NRA (non-resident alien). We have been married since 2015.

 

I haven't filed my tax return for this year yet and am wondering how I can do so. I am unemployed and only receive foreign rental income; and I also pay foreign taxes at the country where I reside and am also a citizen of.

 

 Because my husband is an NRA, we will file it as Married Filing Separately. 

 

But my question is, because I don't have any W2 or any other tax transcripts from previous years, will it be enough to file only the Form 1040 for my foreign rental income and deduct the foreign taxes I pay in Turkey? 

 

Thanx  

 

 

Assuming you have been out of the US for 330/365 days or have been a resident of Turkey for a full tax year you would normally take the foreign earned income exemption and pay taxes on the remaining.  The exemption this year is $102,100.

Unless you made more than that your taxes should be pretty simple. 

[Mozak 12]

2 hours ago, Nitas_man said:

Assuming you have been out of the US for 330/365 days or have been a resident of Turkey for a full tax year you would normally take the foreign earned income exemption and pay taxes on the remaining.  The exemption this year is $102,100.

Unless you made more than that your taxes should be pretty simple. 

Thank you so much for this answer @Nitas_man !

Actually I only received approximately $6,750 in 2017; when converted from TL based on the exchange value of the dollar today. 

 

My taxes are pretty simple I guess, the standard deduction this year is $6,350 I think. So, if I take away expenses and the tax I paid in Turkey I don't think I would have much to pay for the US tax. Is this correct so far? 

I'd just like to know because even though I read almost everything on the IRS website I can't seem to figure out how I have to file my tax return. 

   

[Nitas_man 3,100]

On ‎2‎/‎9‎/‎2018 at 8:18 PM, Mozak said:

Thank you so much for this answer @Nitas_man !

Actually I only received approximately $6,750 in 2017; when converted from TL based on the exchange value of the dollar today. 

 

My taxes are pretty simple I guess, the standard deduction this year is $6,350 I think. So, if I take away expenses and the tax I paid in Turkey I don't think I would have much to pay for the US tax. Is this correct so far? 

I'd just like to know because even though I read almost everything on the IRS website I can't seem to figure out how I have to file my tax return. 

   

LOL.....

 

You qualify for foreign earned exemption if:

You are a bonafide resident of turkey for all of 2017 (set up residence before jan 1, 2017 and were a legal resident all year)

OR

If you were outside the US any 330/365 days for any part of the tax year.

 

Assuming you were a bonafide resident of Turkey all year:

 

On your US tax return:

Report all of your income

Then you exclude (subtract) 102,000 from your foreign earned income (anything earned outside the US)

Then you subtract your standard deduction and your / family member's exemptions from what's left over

Then you pay tax on the rest.

 

You appear to be nowhere near the radar screen of owing taxes.  But:  You still need to file.  You don't owe any taxes on income earned living /working outside the US unless you make like $120,000

Can't help you with Turkey's taxes.

 

 

[Mozak 12]

1 hour ago, Nitas_man said:

LOL.....

 

You qualify for foreign earned exemption if:

You are a bonafide resident of turkey for all of 2017 (set up residence before jan 1, 2017 and were a legal resident all year)

OR

If you were outside the US any 330/365 days for any part of the tax year.

 

Assuming you were a bonafide resident of Turkey all year:

 

On your US tax return:

Report all of your income

Then you exclude (subtract) 102,000 from your foreign earned income (anything earned outside the US)

Then you subtract your standard deduction and your / family member's exemptions from what's left over

Then you pay tax on the rest.

 

You appear to be nowhere near the radar screen of owing taxes.  But:  You still need to file.  You don't owe any taxes on income earned living /working outside the US unless you make like $120,000

Can't help you with Turkey's taxes.

 

 

Ahahaha 

Just like you said i dont owe anything!

I actually used the free filing system for H&R block and it helped out a lot. 

 

But, I can't file my return online-using their system- because I need to fill in the SSN space for my spouse. Being that he is an NRA (non-resident alien) I have to get an ITIN for him now. So that sucks! Otherwise the free filing system is pretty useful. 

 

Btw, thanx again for the info. 

[Italian_in_NYC 259]

On ‎2‎/‎9‎/‎2018 at 10:02 AM, Nitas_man said:

Assuming you have been out of the US for 330/365 days or have been a resident of Turkey for a full tax year you would normally take the foreign earned income exemption and pay taxes on the remaining.  The exemption this year is $102,100.

Unless you made more than that your taxes should be pretty simple. 

Rental income is not earned income (it is unearned income) so not excludable under FEIE.

Also, do not forget to take depreciation or the IRS will lower the basis when you sell.

[Italian_in_NYC 259]

On ‎2‎/‎9‎/‎2018 at 12:18 PM, Mozak said:

Thank you so much for this answer @Nitas_man !

Actually I only received approximately $6,750 in 2017; when converted from TL based on the exchange value of the dollar today. 

 

My taxes are pretty simple I guess, the standard deduction this year is $6,350 I think. So, if I take away expenses and the tax I paid in Turkey I don't think I would have much to pay for the US tax. Is this correct so far? 

I'd just like to know because even though I read almost everything on the IRS website I can't seem to figure out how I have to file my tax return. 

   

I suggest you still file.
Sounds like you are generating PAL (Passive Activity Losses), actually deductible up to $25,000 (if you materially participate) if your income is less than $150,000. You may want to generate a NOL for future use.

Or a PAL in case you are not materially participating.

Both can be carried forward indefinitely.

[Mozak 12]

12 minutes ago, Italian_in_NYC said:

I suggest you still file.
Sounds like you are generating PAL (Passive Activity Losses), actually deductible up to $25,000 (if you materially participate) if your income is less than $150,000. You may want to generate a NOL for future use.

Or a PAL in case you are not materially participating.

Both can be carried forward indefinitely.

Thank you for the info! 

 

I actually filled out my tax return using the e-file online system with H&R Block. I eventually ended up not owing anything and did not get a refund either. But I will still be filing the return. 

 

[Italian_in_NYC 259]

Just now, Mozak said:

Thank you for the info! 

 

I actually filled out my tax return using the e-file online system with H&R Block. I eventually ended up not owing anything and did not get a refund either. But I will still be filing the return. 

 

Owing is not the problem.

Generating very valuable tax attributes you are entitled to is. Anyone with foreign assets should go to a CPA who knows this stuff.

Did you file form 4562 (depreciation)? You should have (depreciate the building over 40 years).

Did you file form 8582? You should have.

[UygarYalcin 0]

Hi Mozak,

We are also filing from Turkey and we need assistance for filing tax returns since my wife the petitioner has never filed taxes. Altough, she is unemployed and has no income. I am the only one working as an NRA. Do we need to file 1040 for the last 3 years and for 2018? We do not even have an idea how to fill in that forms ... Thanks a lot.