Filing taxes 2019 with or without new spouse

[VALU 55]

45 minutes ago, geowrian said:

1) Her question did not ask anything about getting a bigger refund.

2) Probably (most likely). Not always - depends on the circumstances.

Sorry, my question is trying to figure out which option would give me a bigger refund. Thought that was clear in my post but maybe not. Sorry about that confusion. I want to get the biggest refund and hence why I'm thinking of filing separately.

[Crazy Cat 41,982]

7 minutes ago, VALU said:

Is it acceptable if #2 in the text you posted above applies?

ALL of the conditions must apply.......if you were together in the last half of 2019, then HOH does not apply.

Edited January 9, 2020 by missileman

[Crazy Cat 41,982]

14 minutes ago, VALU said:

Thank you for that insight. I will compare and see which option gives me a higher refund.

That is the best thing to do, in my opinion....

[geowrian 22,337]

14 minutes ago, VALU said:

Sorry, my question is trying to figure out which option would give me a bigger refund. Thought that was clear in my post but maybe not. Sorry about that confusion. I want to get the biggest refund and hence why I'm thinking of filing separately.

Alright. The best thing to do then is run it separately and jointly and see which one gives the bigger refund. Usually that is MFJ - the doubled standard deduction is usually optimal for reducing tax liability. MFS usually only does so in limited circumstances.

 

It's a little more complicated with immigration for the first year. To file jointly, you must both report worldwide income for the entire year.

If he had foreign income from before entering the US, depending on the amount and if it can be excluded via the FEIE, or reduced via the FTC (to avoid double taxation), that will likely determine if MFJ is optimal or not.

If you file separately, he can be treated as a dual-status alien and therefore only needs to claim income from the point he entered the US onward.

[VALU 55]

57 minutes ago, geowrian said:

Alright. The best thing to do then is run it separately and jointly and see which one gives the bigger refund. Usually that is MFJ - the doubled standard deduction is usually optimal for reducing tax liability. MFS usually only does so in limited circumstances.

 

It's a little more complicated with immigration for the first year. To file jointly, you must both report worldwide income for the entire year.

If he had foreign income from before entering the US, depending on the amount and if it can be excluded via the FEIE, or reduced via the FTC (to avoid double taxation), that will likely determine if MFJ is optimal or not.

If you file separately, he can be treated as a dual-status alien and therefore only needs to claim income from the point he entered the US onward.

That's good to know.

 

Thanks guys for your input. I also just found out that I can't apply as head of household because all the 5 points have to apply and not just one. The 6 months doesn't apply since we lived together since February 2019.

[Crazy Cat 41,982]

1 minute ago, VALU said:

I also just found out that I can't apply as head of household because all the 5 points have to apply and not just one. The 6 months doesn't apply since we lived together since February 2019.

100% accurate!!!

[landy88 16]

1 hour ago, VALU said:

Sorry, my question is trying to figure out which option would give me a bigger refund. Thought that was clear in my post but maybe not. Sorry about that confusion. I want to get the biggest refund and hence why I'm thinking of filing separately.

It was clear to me, but my love filing "married filing separately" wont give you a bigger refund. If you file together with your kids as a dependent you will get a lot more. 

[Crazy Cat 41,982]

4 minutes ago, landy88 said:

It was clear to me, but my love filing "married filing separately" wont give you a bigger refund. If you file together with your kids as a dependent you will get a lot more. 

Why file together with just the kids?  She has a spouse......

[geowrian 22,337]

10 minutes ago, missileman said:

Why file together with just the kids?  She has a spouse......

Filing together = with the spouse.

 

I agree that MFJ is likely optimal tax-wise. But there is no way to know for sure without running the numbers.

If the foreign spouse has income prior to coming to the US, how much that is, and eligibility for the FEIE or FTC would be the biggest factors.

For instance, if the FEIE + FTC did not apply and they had over 12k in foreign income (the extra standard deduction by filing jointly) prior to coming to the US, then filing separately likely results in a lower tax liability.

If the foreign income earned was under $12k OR the FEIE applies to exclude their foreign income, then filing jointly almost certainly is better. If the FEIE does not apply but FTC does, then the exact amount of taxes paid abroad on that foreign income would be the main factor.

Edited January 9, 2020 by geowrian

[Crazy Cat 41,982]

6 minutes ago, geowrian said:

Filing together = with the spouse.

Yeah........strange misinterpretation on my part...LOL...thanks...My sincere apologies to @landy88.  I agree that foreign income adds a whole new consideration...and, in some circumstances, could even make Married filing separately a better option...

[landy88 16]

17 minutes ago, missileman said:

Why file together with just the kids?  She has a spouse......

what? Im telling her to file "married filing jointly" with her spouse. She said she has kids so there is her "dependents". she will get a lot more on her refund.   

[Crazy Cat 41,982]

4 minutes ago, landy88 said:

what? Im telling her to file "married filing jointly" with her spouse. She said she has kids so there is her "dependents". she will get a lot more on her refund.   

My apologies.  I misinterpreted your post.........you are likely correct......but taxes can get pretty complex....especially the first year for a new immigrant.

[geowrian 22,337]

Personal exemptions were eliminated in the tax reform changes. Having child dependents won't impact tax liability in MFJ vs MFS.

The child tax credit still applies, but that applies for both MFJ and MFS.

[landy88 16]

1 minute ago, missileman said:

My apologies.  I misinterpreted your post.........you are likely correct......but taxes can get pretty complex....especially the first year for a new immigrant.

I understand, but that's what I do Im a tax professional. 

The best thing she can do is talk to the person who is going to file for her, there she can ask all the questions she may have. Also, For my understand you have to file together the first years for a new immigrant. having a bank account and being in their apartment lease is not good enough for immigration.  

[Crazy Cat 41,982]

2 minutes ago, landy88 said:

Also, For my understand you have to file together the first years for a new immigrant.

A couple has to file taxes jointly the first year????  That is absolutely false.....

Edited January 9, 2020 by missileman