Filing taxes 2019 with or without new spouse

[landy88 16]

1 minute ago, missileman said:

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

ok.

[Crazy Cat 41,982]

16 minutes ago, landy88 said:

ok.

My wife has foreign income.  She arrived in the US (CR-1)  in June of 2017.  Her home country does not have a tax agreement with The US.  She was a dual status resident (for taxes) the first year.  Thus, she had a tax liability only for the income she had after she arrived. We both filed "Married Filing Separately".  Filing separately was better for us in our individual situation.   It can be complex.  That's why I recommend that all new immigrants who have foreign income at least consult a competent tax preparer the first year.  .  

 

This is how taxes work for a dual status resident the first year:  You will be taxed only on your U.S. source income during the nonresident alien portion of your year and on worldwide income for the resident alien portion of your year.

Edited January 9, 2020 by missileman

[Sad.wasi 32]

4 hours ago, missileman said:

In your situation, your family  would almost certainly benefit from filing jointly.........you should compare the calculation for the taxes for BOTH spouses filing separately versus filing a joint return.......then make your decision.......or consult a competent tax preparer.

 

 

That is incorrect........Any married couple can file as "Married filing separately" if they want.

No sir it depends on how they did their w4 ,like allowances if they did married but holding with single rates then they should be able to file married  filing separately  n get some money back but they did just martied then filing jointly is gonna get them money back 

[Crazy Cat 41,982]

15 minutes ago, Sad.wasi said:

No sir it depends on how they did their w4 ,like allowances if they did married but holding with single rates then they should be able to file married  filing separately  n get some money back but they did just martied then filing jointly is gonna get them money back 

W4 withholding is a different matter.  Don't confuse tax withholding and tax filing status.  They are different.  W4s do not affect tax liability at all........W4s affect only tax withholding........my posts concern tax liability and tax filing status.

Edited January 9, 2020 by missileman

[VALU 55]

1 hour 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. 

Ok 2 kids and a spouse would get us more. Good to know. 👏

[landy88 16]

5 minutes ago, VALU said:

Ok 2 kids and a spouse would get us more. Good to know. 👏

Yes, as a family. You will see, talk to your tax professional ask them to give you an estimate for both "married filing separately" and "married filing jointly" with your dependents of course like that you will be able to see the numbers. after that you can go from there. 

[VALU 55]

1 hour ago, geowrian said:

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.

He is from Dominican Republic and wasn't making much money. I don't even know what proof of tax payment from DR IRS would want. Or don't they ask for proof of income tax payment from  foreign country? And what's that got to do with the USA anyway. He wasn't sending me money to pay bills in the USA.... So I wonder if Dominican Republic has a tax agreement with the USA...

Edited January 9, 2020 by VALU

[landy88 16]

10 minutes ago, VALU said:

He is from Dominican Republic and wasn't making much money. I don't even know what proof of tax payment from DR IRS would want. Or don't they ask for proof of income tax payment from  foreign country? And what's that got to do with the USA anyway. He wasn't sending me money to pay bills in the USA.... So I wonder if Dominican Republic has a tax agreement with the USA...

My love, how long has your husband being working in the USA?

If he has being working here in the USA forget about DR that doesnt matter they dont pay tax. Your husbands W2s and yours is more than good enough and even if he didnt work you can still file with him and get more money. you can still get a credit because your still together living as a family.  

[geowrian 22,337]

48 minutes ago, VALU said:

He is from Dominican Republic and wasn't making much money. I don't even know what proof if tax payment from DR IRS would want. Or don't they ask for proof of income tax payment from  foreign country? But what's that got to do with the USA anyone. He wasn't sending me money to pay Bill's in the USA....

No evidence of the foreign income is required at the time of filing - it just needs to be claimed (usually listed as "other Income" or "foreign income" in most tax prep software). Evidence of that income should be retained in the event of an audit (just like you do for US income). This can be in the form of contracts, pay slips, bank statements, etc.

 

To file jointly, he is required to report his worldwide income for the entire tax year. He cannot claim dual status and file jointly.

 

To sum it up, he can either:

1) Opt to be dual status. This means he is only being responsible for US taxes on income earned after becoming a resident. He would file separately.

 

2) Make a choice to be treated as a US resident for the entire tax year, as the spouse of a USC. This means he has to claim his worldwide income for the entire year, but it enables him to file jointly. If he meets the requirements for the Foreign Earned Income Exclusion (FEIE), then he can exclude his foreign income so it won't counted for determining the amount of taxes owed.

See https://www.irs.gov/individuals/international-taxpayers/nonresident-alien-spouse.

Quote

Election to File Joint Return

If you make this choice, the following rules apply:

• You and your spouse are treated, for federal income tax purposes, as U.S residents for all tax years that the choice is in effect. However, for Social Security and Medicare tax withholding purposes, the nonresident alien may still be treated as a nonresident alien. Refer to Aliens Employed in the U.S. – Social Security Taxes.
• You must file a joint income tax return for the year you make the choice (but you and your spouse can file joint or separate returns in later years).
• Each spouse must report his or her entire worldwide income for the year you make the choice and for all later years, unless the choice is ended or suspended.
• Generally, neither you nor your spouse can claim tax treaty benefits as a resident of a foreign country for a tax year for which the choice is in effect. However, the exception to the saving clause of a tax treaty might allow a tax treaty benefit on certain specified income.

 

Edit: For more specifics, see the 1040 instructions, pages 12-13: https://www.irs.gov/pub/irs-pdf/i1040gi.pdf

Quote

Married Filing Jointly

...

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 2019, you can elect to be treated as a resident alien and file a joint return. See Pub. 519 for details

 

Edited January 9, 2020 by geowrian

[VALU 55]

1 hour ago, landy88 said:

My love, how long has your husband being working in the USA?

If he has being working here in the USA forget about DR that doesnt matter they dont pay tax. Your husbands W2s and yours is more than good enough and even if he didnt work you can still file with him and get more money. you can still get a credit because your still together living as a family.  

Got it, thank you. He started working in June 2019.

Edited January 9, 2020 by VALU

[VALU 55]

1 hour ago, geowrian said:

No evidence of the foreign income is required at the time of filing - it just needs to be claimed (usually listed as "other Income" or "foreign income" in most tax prep software). Evidence of that income should be retained in the event of an audit (just like you do for US income). This can be in the form of contracts, pay slips, bank statements, etc.

 

To file jointly, he is required to report his worldwide income for the entire tax year. He cannot claim dual status and file jointly.

 

To sum it up, he can either:

1) Opt to be dual status. This means he is only being responsible for US taxes on income earned after becoming a resident. He would file separately.

 

2) Make a choice to be treated as a US resident for the entire tax year, as the spouse of a USC. This means he has to claim his worldwide income for the entire year, but it enables him to file jointly. If he meets the requirements for the Foreign Earned Income Exclusion (FEIE), then he can exclude his foreign income so it won't counted for determining the amount of taxes owed.

See https://www.irs.gov/individuals/international-taxpayers/nonresident-alien-spouse.

 

Edit: For more specifics, see the 1040 instructions, pages 12-13: https://www.irs.gov/pub/irs-pdf/i1040gi.pdf

 

Very good information. Thank you. I have learned a lot and faster through this thread.

[landy88 16]

2 minutes ago, VALU said:

Got it, thank you. He started working in June 2019.

Ok good, than that's what your going to file with. He would receive a w2 depending on what he does for work for those 6 months. but again make a appointment with the person who does your taxes is better to talk to someone about this is person. 

[VALU 55]

1 hour ago, geowrian said:

No evidence of the foreign income is required at the time of filing - it just needs to be claimed (usually listed as "other Income" or "foreign income" in most tax prep software). Evidence of that income should be retained in the event of an audit (just like you do for US income). This can be in the form of contracts, pay slips, bank statements, etc.

 

To file jointly, he is required to report his worldwide income for the entire tax year. He cannot claim dual status and file jointly.

 

To sum it up, he can either:

1) Opt to be dual status. This means he is only being responsible for US taxes on income earned after becoming a resident. He would file separately.

 

2) Make a choice to be treated as a US resident for the entire tax year, as the spouse of a USC. This means he has to claim his worldwide income for the entire year, but it enables him to file jointly. If he meets the requirements for the Foreign Earned Income Exclusion (FEIE), then he can exclude his foreign income so it won't counted for determining the amount of taxes owed.

See https://www.irs.gov/individuals/international-taxpayers/nonresident-alien-spouse.

 

Edit: For more specifics, see the 1040 instructions, pages 12-13: https://www.irs.gov/pub/irs-pdf/i1040gi.pdf

 

To get the biggest refund possible, is it more beneficial to file as a resident alien for the entire year although he only lived in the USA since February 2019? Or is it more beneficial to claim worldwide income although he hasn't worked in DR since February, 2019. He quit his job after we got approved for the Visa. Not sure if living in DR and not working since February 2019 matters. I guess we are better off filing resident aliens for the entire 2019 because he arrived in the USA February 9th, 2019. Right?

[VALU 55]

11 minutes ago, landy88 said:

Ok good, than that's what your going to file with. He would receive a w2 depending on what he does for work for those 6 months. but again make a appointment with the person who does your taxes is better to talk to someone about this is person. 

Thank you. I usually prepare my own taxes online. I only use a tax professional when I need to amend.

[Crazy Cat 41,982]

6 minutes ago, VALU said:

To get the biggest refund possible, is it more beneficial to file as a resident alien for the entire year although he only lived in the USA since February 2019? Or is it more beneficial to claim worldwide income although he hasn't worked in DR since February, 2019. He quit his job after we got approved for the Visa. Not sure if living in DR and not working since February 2019 matters. I guess we are better off filing resident aliens for the entire 2019 because he arrived in the USA February 9th, 2019. Right?

What was his DR only income in 2019?  You will have to report it......if he is resident alien for the entire year.

Edited January 9, 2020 by missileman