Newly wed and MFJ Filing with Obamacare credit

[mikey_2017 0]

Hello,

i wanna know if someone got married to a french woman who visited the US for less than a week in 2018, has a SSN from long ago work, no green card yet, and works in France. if we file jointly, "as required to get Obamacare credits" and if i make 30K & she makes 40K in France, and we file form 2555 for her....

will the IRS consider my income as 30+40 which is greater than the 64K threshold for family of 2 and i will have to pay back any advanced tax credit

or IRS will consider only my income as 30K only, less than 47K for individual, even we are filing jointly and she is overseas.

 

Thank you

[Lil bear 4,218]

47 minutes ago, mikey_2017 said:

Hello,

i wanna know if someone got married to a french woman who visited the US for less than a week in 2018, has a SSN from long ago work, no green card yet, and works in France. if we file jointly, "as required to get Obamacare credits" and if i make 30K & she makes 40K in France, and we file form 2555 for her....

will the IRS consider my income as 30+40 which is greater than the 64K threshold for family of 2 and i will have to pay back any advanced tax credit

or IRS will consider only my income as 30K only, less than 47K for individual, even we are filing jointly and she is overseas.

 

Thank you

As your wife is not considered a US resident for tax purposes, her income is irrevalent for your tax return. You should  file MFS, I believe 

[mikey_2017 0]

Thanks Lil bear,

 

its irrelevant but if i wanna avoid paying obamacare Tax credits i must file jointly by law, and if i file jointly i want to know whether her excluded foreign income is to be considered as income for obamacare tax credit purposes.

[EandH0904 1,184]

3 minutes ago, mikey_2017 said:

Thanks Lil bear,

 

its irrelevant but if i wanna avoid paying obamacare Tax credits i must file jointly by law, and if i file jointly i want to know whether her excluded foreign income is to be considered as income for obamacare tax credit purposes.

You don't have to file jointly by law who told you that? 

 

You can't file single but you could definitely file married filing separately 

[Joyoussinger 1,425]

1 minute ago, EandH0904 said:

You don't have to file jointly by law who told you that? 

 

You can't file single but you could definitely file married filing separately 

My ACA application did say that if I get married in 2019, my husband and I must file jointly.

[payxibka 10,045]

8 minutes ago, mikey_2017 said:

Thanks Lil bear,

 

its irrelevant but if i wanna avoid paying obamacare Tax credits i must file jointly by law, and if i file jointly i want to know whether her excluded foreign income is to be considered as income for obamacare tax credit purposes.

Total household income not taxable income

[EandH0904 1,184]

16 minutes ago, Joyoussinger said:

My ACA application did say that if I get married in 2019, my husband and I must file jointly.

This must be a difference between the ACA and the IRS that I was unaware of. Its interesting that they would require you to file a certain way

[Nitas_man 3,100]

18 hours ago, Lil bear said:

As your wife is not considered a US resident for tax purposes, her income is irrevalent for your tax return. You should  file MFS, I believe 

Not true.  They should file MFJ, declare her income as foreign earned, and exclude it.

17 hours ago, mikey_2017 said:

Thanks Lil bear,

 

its irrelevant but if i wanna avoid paying obamacare Tax credits i must file jointly by law, and if i file jointly i want to know whether her excluded foreign income is to be considered as income for obamacare tax credit purposes.

It is included as per healthcare.gov

Edited December 28, 2018 by Nitas_man

[mikey_2017 0]

5 minutes ago, Nitas_man said:

Not true.  They should file MFJ, declare her income as foreign earned, and exclude it.

It is included as per healthcare.gov

Thanks Nitas_man,

 

that is what i was worried about, to get tax credits One must file jointly per ACA rules but to file jointly and include her income as well will kick me out of the ACA threshold for Tax credits..an egg/chicken issue

[Nitas_man 3,100]

2 minutes ago, mikey_2017 said:

Thanks Nitas_man,

 

that is what i was worried about, to get tax credits One must file jointly per ACA rules but to file jointly and include her income as well will kick me out of the ACA threshold for Tax credits..an egg/chicken issue

You will probably lose those credits.  I thought it was excluded (it is not in the tax return AGI line) but it specifically says to include it in the calculation for total household income.  That sux.

Edited December 28, 2018 by Nitas_man

[mikey_2017 0]

lose credits and any extra deduction on gets by filing jointly! too bad -(

[Nitas_man 3,100]

Just now, mikey_2017 said:

lose credits and any extra deduction on gets by filing jointly! too bad -(

Well your overall taxable income drops to about 6000 bucks after you subtract 24 (mfj) from your 30.  None of hers will be taxed.

[Joyoussinger 1,425]

52 minutes ago, mikey_2017 said:

lose credits and any extra deduction on gets by filing jointly! too bad -(

 

50 minutes ago, Nitas_man said:

Well your overall taxable income drops to about 6000 bucks after you subtract 24 (mfj) from your 30.  None of hers will be taxed.

Tax time is gonna be a delight! 😵