"There are no personal exemption(s) for 2018" ?!

[Meisha&Jake 869]

Hello VJ'ers

 

I've been doing a lot of researching about how my husband should file his taxes for 2018.

I moved here in Oct 2018 on a K1 fiancé visa from the UK, married in Nov 2018, filed for AOS in Dec 2018.

 

We want to file taxes "Married filing jointly" & i was under the impression from the pinned thread on this section of the forum, that i could be a spousal exemption.. but i just went onto IRS official website & it states there is "There are no personal exemption(s) for 2018." atall?!

 

Now im completely lost... we've scheduled an appointment at our nearest IRS office for me to obtain a ITIN (as SSA screwed up my application for SSN, whole different story, i have a thread about it on these forums if your curious)

 

Can anyone shed some light on this please?

 

Thanks in advance

 

 

https://www.cbsnews.com/news/9-tax-deductions-individuals-can-no-longer-claim-for-their-2018-taxes/

Edited February 9, 2019 by Meisha&Jake

[Just Paul 4,595]

The standard deduction still applies and is generally larger. . . 2x12000

 

https://www.forbes.com/sites/kellyphillipserb/2018/03/07/new-irs-announces-2018-tax-rates-standard-deductions-exemption-amounts-and-more/#5231c8723133

Edited February 9, 2019 by Paul & Mary
added link

[Meisha&Jake 869]

2 minutes ago, Paul & Mary said:

The standard deduction still applies and is generally larger. . . 2x12000

Thank you for your quick response!
My confusion is, we was going to attach a cover letter saying spousal exemption & no need to declare my 2018 UK income as im currently a NRA here in USA (awaiting AOS) & have not earned any income in the USA

[geowrian 22,337]

31 minutes ago, Meisha&Jake said:

My confusion is, we was going to attach a cover letter saying spousal exemption & no need to declare my 2018 UK income as im currently a NRA here in USA (awaiting AOS) & have not earned any income in the USA

If you are an NRA and elect to be treated as an NRA, then you cannot file MFJ.

As the spouse of a USC or LPR, you can elect to be treated as an RA for the tax year, thereby qualifying for MFJ filing status. But you would need to report worldwide income, but cna then exclude most to all of it via the FEIE (and/or FTC if needed & eligible).

 

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

"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"

[Meisha&Jake 869]

9 minutes ago, geowrian said:

If you are an NRA and elect to be treated as an NRA, then you cannot file MFJ.

As the spouse of a USC or LPR, you can elect to be treated as an RA for the tax year, thereby qualifying for MFJ filing status. But you would need to report worldwide income, but cna then exclude most to all of it via the FEIE (and/or FTC if needed & eligible).

 

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

"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"

Thank you! I think i've got myself just so confused.. im worried that Married filing separately will be a red flag for when i have my AOS interview 😕

[geowrian 22,337]

6 minutes ago, Meisha&Jake said:

Thank you! I think i've got myself just so confused.. im worried that Married filing separately will be a red flag for when i have my AOS interview 😕

It won't be an issue for the interview at all. Your filing status is a personal, tax decision, not one of having a bona fide marriage.

 

Although the extra $12.2k in standard deduction for MFJ is usually well worth the extra effort.

[belinda63 3,038]

The extra deduction won't help unless his foreign income is small. Remember he has not paid a penny in US tax on the income as of now unlike us who have part take every payday.

 

[geowrian 22,337]

"Small" is relative. For somebody who moved to the US in Oct, the amount of income that can be excluded via the FEIE alone is around $75,000.

Edited February 9, 2019 by geowrian

[Wuozopo 4,293]

13 hours ago, Meisha&Jake said:

We want to file taxes "Married filing jointly" & i was under the impression from the pinned thread on this section of the forum, that i could be a spousal exemption.. but i just went onto IRS official website & it states there is "There are no personal exemption(s) for 2018." atall?!

 

2018 tax year is a major overhaul of the entire tax system. Anything you find posted about prior years may no longer be correct because of tax law changes or form changes.

 

To clarify what you want to know. Prior to 2018 tax year, a personal exemption was given per taxpayer and each dependent claimed (typically each child you have) to reduce your taxable income...the amount that is considered for taxes. Those exemptions are not part of the new 2018 tax code.  An additional way to reduce income was the standard deduction allowed per taxpayer (not their children). 

 

Comparison of what adding you to your husband's return would reduce his taxable income.

 

2017 tax year

Exemption $4050 

Standard deduction $6350

Total $10,400

 

2018 tax year

Exemptions $0 N/A

Standard deduction $12,000

 

So you see that even though the exemption was eliminated, the increased standard deduction means you on the tax return reduces his taxable income by an additional $12,000. Meanwhile, any UK income you report can be excluded using Form 2555. It means the tax your income would generate is subtracted out. 

 

Him Married Filing Separately reduces his taxable income $12k

Him filing Jointly with you reduces his taxable income $24k

 

 

Edited February 9, 2019 by Wuozopo

[Jeanne Adil 1,651]

you dont get ITIN  at this point

you are in US and married to USC

you get a SS number

[Wuozopo 4,293]

51 minutes ago, adil-rafa said:

you dont get ITIN  at this point

you are in US and married to USC

you get a SS number

She is not eligible to get one at this time. She came on a fiancé visa and had to get a SSN within the first 76 days. The workers at her Soc Sec Office denied her (wrongly) so now it's too late. She has to wait until her work authorization or greencard get approved before she is eligible again. That will be after tax filing deadline.

[Meisha&Jake 869]

19 hours ago, geowrian said:

It won't be an issue for the interview at all. Your filing status is a personal, tax decision, not one of having a bona fide marriage.

 

Although the extra $12.2k in standard deduction for MFJ is usually well worth the extra effort.

Thank you! Really appreciate your knowledge

 

 

17 hours ago, belinda63 said:

The extra deduction won't help unless his foreign income is small. Remember he has not paid a penny in US tax on the income as of now unlike us who have part take every payday.

 

Not sure what your trying to get at with this post...? My husband is the USC & im from the UK who moved here on a K1. My husband pays his taxes thank you & my taxes came out every monthly paycheck when i worked back home in the UK.

 

7 hours ago, Wuozopo said:

 

2018 tax year is a major overhaul of the entire tax system. Anything you find posted about prior years may no longer be correct because of tax law changes or form changes.

 

To clarify what you want to know. Prior to 2018 tax year, a personal exemption was given per taxpayer and each dependent claimed (typically each child you have) to reduce your taxable income...the amount that is considered for taxes. Those exemptions are not part of the new 2018 tax code.  An additional way to reduce income was the standard deduction allowed per taxpayer (not their children). 

 

Comparison of what adding you to your husband's return would reduce his taxable income.

 

2017 tax year

Exemption $4050 

Standard deduction $6350

Total $10,400

 

2018 tax year

Exemptions $0 N/A

Standard deduction $12,000

 

So you see that even though the exemption was eliminated, the increased standard deduction means you on the tax return reduces his taxable income by an additional $12,000. Meanwhile, any UK income you report can be excluded using Form 2555. It means the tax your income would generate is subtracted out. 

 

Him Married Filing Separately reduces his taxable income $12k

Him filing Jointly with you reduces his taxable income $24k

 

 

As always, great information @Wuozopo thank you! Going to get my husband to read all these responses

 

4 hours ago, adil-rafa said:

you dont get ITIN  at this point

you are in US and married to USC

you get a SS number

 

You clearly didnt read my post, i said i couldnt get an SSN, theres a thread on these forums if your curious, it was no fault of my own.

[Jeanne Adil 1,651]

so  your I 94  expired?

[Meisha&Jake 869]

1 minute ago, adil-rafa said:

so  your I 94  expired?