Wrong advice received from tax preparer regarding filing?

[sremlif 51]

Hello

 

My spouse (US Citizen) and I (beneficiary currently pending AOS) visited a tax preparer today in NYC regarding filing for 2018 and I feel we may have been given incorrect advice regarding my situation.

 

For reference, I arrived in the USA on July 26, 2018 and understand I am classed as a resident under the IRS substantial presence test for tax purposes. Prior to this I was in full-time employment in the UK, throughout 2018, but resigned once I left to migrate to the US on my K1 visa. 

 

When meeting with the tax preparer, I brought along my P45 documents from my previous job in the UK. They glanced over it before stating that I would not need to declare any foreign income as only US citizens need to do this. I mentioned the substantial presence test and they said I hadn't earned any income in the US to declare, so wasn't necessary for the purpose of filing my US taxes.

 

At this point I was pretty confused as their advice went against everything I read/heard elsewhere, so I thanked them and left. Is there any truth to what they have said, or should I begin looking for another tax preparer that has experience dealing with K1 immigrants / foreign income?

Edited February 4, 2019 by sremlif

[The Rock ll 227]

They r Right...if u r not US citizen then u only declare your US income...overseas income has nothing to do with IRS ...if u worked here in US and got paid either W-2 or 1099..then u should declare it...

[Free Man 119]

You are on point. Your world wide income is subjected to tax in the US.  Kindly send me a direct message for further direction. 

 

https://www.irs.gov/businesses/income-from-abroad-is-taxable

Edited February 4, 2019 by Ras Ous
To add a website

[geowrian 22,337]

Depends on how you are filing.

 

If you file Married Filing Jointly (MFJ), then you must be considered a resident alien (RA) for the entire tax year. Since you are not one for the entire year but are the spouse of a USC, you can elect to be treated as one for the entire year.

Resident Aliens are required to report worldwide income. The FEIE and/or FTC can exclude most to all of this foreign income from being taxed.

 

Edit: It sounds like the advice you received was for a dual status alien. They only need to declare income since becoming a resident alien. However, this does not permit filing MFJ (unless you elect to be treated as an RA...but again then needing to report worldwide income for the entire year).

 

11 minutes ago, The Rock ll said:

They r Right...if u r not US citizen then u only declare your US income...overseas income has nothing to do with IRS ...if u worked here in US and got paid either W-2 or 1099..then u should declare it...

Incorrect. Any "US person" must declare worldwide income.

A US person is any US citizen, legal permanent resident (LPR), or other resident alien.

Edited February 4, 2019 by geowrian

[geowrian 22,337]

1040 instructions (https://www.irs.gov/pub/irs-pdf/i1040gi.pdf, page 15):

"Nonresident aliens and dual-status aliens.

Generally, a married couple can't file a joint return if either spouse is a nonresident alien at any time during the year. However, if you were a nonresident alien or a dual-status alien and were married to a U.S. citizen or resident alien at the end of 2018, you can elect to be treated as a resident alien and file a joint return. See Pub. 519 for details."

[Cryssiekins 976]

You need to likely seek a more experienced tax preparer.  I had to go to 3 different places before I found one who understood how to prepare the 2551 form.  

[Crazy Cat 41,806]

29 minutes ago, The Rock ll said:

They r Right...if u r not US citizen then u only declare your US income...overseas income has nothing to do with IRS ...if u worked here in US and got paid either W-2 or 1099..then u should declare it...

Nope....That is not accurate at all.  

[Crazy Cat 41,806]

33 minutes ago, geowrian said:

It sounds like the advice you received was for a dual status alien. They only need to declare income since becoming a resident alien. However, this does not permit filing MFJ (unless you elect to be treated as an RA...but again then needing to report worldwide income for the entire year).

BINGO!!!!   That was exactly my wife's situation when she arrived in 2017.  Our excellent accountant advised her to report only what foreign income she produced after her arrival via a CR-1.........My wife was a dual status resident for tax year 2017. ...and we filed MFS.    However, for tax year 2018, we are reporting her income for the entire year, and we are filing joint............. (Thank goodness for the increased standard deductions allowance for 2018...LOL).

 

Note:  My accountant is accepting new clients for tax preparation....

Edited February 4, 2019 by missileman

[Happylovelife111 2]

On 2/4/2019 at 3:06 PM, Crazy Cat said:

BINGO!!!!   That was exactly my wife's situation when she arrived in 2017.  Our excellent accountant advised her to report only what foreign income she produced after her arrival via a CR-1.........My wife was a dual status resident for tax year 2017. ...and we filed MFS.    However, for tax year 2018, we are reporting her income for the entire year, and we are filing joint............. (Thank goodness for the increased standard deductions allowance for 2018...LOL).

 

Note:  My accountant is accepting new clients for tax preparation....

Do you mind letting me know who your tax accountant is? 

[Ontarkie 14,215]

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