DCF in London - January 2020

[Stuwoolf 44]

4 hours ago, Wuozopo said:

Ok about the house sale. The US will tax profit made on the house as a capital gain. BUT there is an exclusion of $250,000 for an individual or $500,000 for a joint tax return. Since the profit you mention is nowhere near that limit, your money won’t be taxable if you meet the requirements. Start reading here and read more detail in the links the IRS provides. https://www.irs.gov/taxtopics/tc701  You may have some extra paperwork to fill out that sounds a bit daunting at first read, but a tax accountant can sort it for you or you can wade through it bit by bit and learn, much like you are learning the immigration process. The year you immigrate is the hardest and with a house sale, another layer. BUT if you sell the house before you become an LPR, you follow UK tax laws. Once you move, you file with the IRS and not the UK per the tax treaty between the countries. I don’t think the house sale is going to hit your pocketbook either way, but there could be extra forms to fill out to report it, even if exempt from the capital gain tax. While you’re  waiting on an interview, you might want to read up on IRS publications.
 

 Most want to file a joint return with their American spouse because it’s a big tax break. Since she was out of the country, any salary income she earned in the UK for 2020 could be excluded from taxation so improving on zero taxes owed isn’t going to be improved by filing jointly. You can’t do better than zero owed.  On the other hand, I believe you both would qualify for the 2020 stimulus package by filing a joint return for 2020. There’s so many options, I can’t get my head wrapped around it tonight to give an opinion.  Confused yet? 

Thanks for this. The link will be invaluable.

 

Just to be clear, Capital Gains applies to sums in excess of 250k USD (single tax filing) or 500k USD (joint tax filing)?

 

Property in UK should be sold before leaving UK?

 

.....and Yes, confusion has set in 😂 but I am sure the info in the link will help.

[Wuozopo 4,293]

2 hours ago, Stuwoolf said:

Just to be clear, Capital Gains applies to sums in excess of 250k USD (single tax filing) or 500k USD (joint tax filing)?

Capital gains are always taxable. I buy Microsoft for $30/share and sell for $200/share. My gain is counted as income. As long as I hold on to it without selling, I have no gain. You sell a house for more than you paid for it, there is a gain. BUT when it is your primary residence you get an exception (up to $500k). If it was a rental property you sold, but never lived in, then no special exclusion. 
 

2 hours ago, Stuwoolf said:

Property in UK should be sold before leaving UK?

I don’t think it’s going to matter because you are going to qualify for the exception for it to be a tax free sale. If you don’t enter the US until 2021, then you have no tax filing obligation to the US for a 2020 tax return or the extra form to report the house sale. If you do become an LPR in 2020 and report your house sale on a US return, you still don’t owe tax on the gain if it was your primary residence. File for 2020 and get $1200 stimulus from the US government. Stay in the UK until Jan 1 to skip the filing obligation (as a US resident in 2020) and you skip the $1200 stimulus. There’s so many angles to approach it. You could also file jointly with the wife for 2020 no matter when you become an LPR. You would report your U.K. income and house sale but get exceptions so no tax created. Normally a US employed wife would benefit by a joint return. If your wife had no US employment in 2020 then there’s nothing special to be gained by adding you to her tax return.  

[Robyn-n-Kris 72]

So, today is the day London's Embassy 'should' be back to normal processing. Here's hoping those of us waiting on LDN numbers start getting them. I'm dying to make our appointments. Just got both of our social security statements in and are ready with all other documentation that they need.

 

Here's to hopefully a productive week for us all. 

[Morgan5698 58]

18 minutes ago, Robyn-n-Kris said:

So, today is the day London's Embassy 'should' be back to normal processing. Here's hoping those of us waiting on LDN numbers start getting them. I'm dying to make our appointments. Just got both of our social security statements in and are ready with all other documentation that they need.

 

Here's to hopefully a productive week for us all

Fingers crossed. Open up that mail room and get those letters out!  

[Gaz1a 22]

Sending out positive vibes to us all, hoping I can get my LND and be that bit closer to being in LA  

[Stuwoolf 44]

8 hours ago, Morgan5698 said:

Fingers crossed. Open up that mail room and get those letters out!  

🤔🤔🤔

 

Wonder if the LDN letters will come in the post or via email?

 

🤔🤔🤔

[FA081 9]

Here’s to a good week for us all!

 

I have been thinking about the I-864 lately and wanted to run something by you all, hopefully someone knows more about it...

 

In regards to the i864, if I have filed my taxes for the last 3 years (just going through the streamline Process so should be filed soon) and made less than the poverty level for 2 of the recent years, but my current income (Starting from now, so no tax returns filed) exceeds it, would I need a joint sponsor because of the previous years? Or is it possible to supplement my income via assets. Assets will be the cash my non-US Spouse has in his account in the UK and my cash in both my UK/US account. 
 

I wonder whether the i864 looks at current income or whether it is judged by previous income, just not sure. 

[Wuozopo 4,293]

54 minutes ago, FA081 said:

 

I have been thinking about the I-864 lately and wanted to run something by you all, hopefully someone knows mor

In regards to the i864, if I have filed my taxes for the last 3 years (just going through the streamline Process so should be filed soon) and made less than the poverty level for 2 of the recent years, but my current income (Starting from now, so no tax returns filed) exceeds it, would I need a joint sponsor because of the previous years? Or is it possible to supplement my income via assets. Assets will be the cash my non-US Spouse has in his account in the UK and my cash in both my UK/US account. 
 

I wonder whether the i864 looks at current income or whether it is judged by previous income, just not sure. 

Since you are in the DCF topic, are you a USC living in the UK? Do you have a job in the US now? Or one that will continue exactly same job/employer/salary when you move to the US? If not, you need a joint sponsor.
 

If you have a US job right now—

Read through the instructions thoroughly starting on the bottom of page 7 with this:

Item Number 7. Current Individual Annual Income. Type or print your current, individual, earned or retirement, annual income that you are using to meet the requirements of this affidavit and indicate the total in the space provided. You may include evidence supporting your claim about your expected income for the current year if you believe that submitting this evidence will help you establish ability to maintain sufficient income.

 

So that’s what you’re making right now carried out for a year. Since your tax return doesn’t show that higher income, you’ll have to prove it with an employer letter or 6 months pay stubs. Don’t put anything higher on #7 than you can prove with one of those things. Then your current income counts and you don’t need a joint sponsor. 
 

Finish reading the instructions about proof of income, require tax return, etc.

Edited July 27, 2020 by Wuozopo

[Robyn-n-Kris 72]

12 hours ago, Wuozopo said:

Since you are in the DCF topic, are you a USC living in the UK? Do you have a job in the US now? Or one that will continue exactly same job/employer/salary when you move to the US? If not, you need a joint sponsor.
 

If you have a US job right now—

Read through the instructions thoroughly starting on the bottom of page 7 with this:

Item Number 7. Current Individual Annual Income. Type or print your current, individual, earned or retirement, annual income that you are using to meet the requirements of this affidavit and indicate the total in the space provided. You may include evidence supporting your claim about your expected income for the current year if you believe that submitting this evidence will help you establish ability to maintain sufficient income.

 

So that’s what you’re making right now carried out for a year. Since your tax return doesn’t show that higher income, you’ll have to prove it with an employer letter or 6 months pay stubs. Don’t put anything higher on #7 than you can prove with one of those things. Then your current income counts and you don’t need a joint sponsor. 
 

Finish reading the instructions about proof of income, require tax return, etc.

I'm still waiting to reach out to the IVU to ask about our situation. Hubby worked in the US for over 10 years and earned the 40 credit quarters to be exempt from the I-864. Unfortunately, they have discontinued the I-864W. We have both of our social security statements as evidence to show he is exempt, but no idea how to present this to them as there is no form to go with it. LOL

 

My guess would be so long as we have it and the public charge form (and all other required documents) that should be sufficient, but there is no official guidance out there. 

[Wuozopo 4,293]

3 hours ago, Robyn-n-Kris said:

My guess would be so long as we have it and the public charge form (and all other required documents) that should be sufficient, but there is no official guidance out there. 

It sounds reasonable that they ask for I-864, you reply “not needed” and show proof why not, and they move on. 
 

The ones who have interviewed in the last couple of weeks have said they did not mention the public charge form, but did verbally ask how they intended to get medical insurance. 

Edited July 28, 2020 by Wuozopo

[Robyn-n-Kris 72]

1 hour ago, Wuozopo said:

It sounds reasonable that they ask for I-864, you reply “not needed” and show proof why not, and they move on. 
 

The ones who have interviewed in the last couple of weeks have said they did not mention the public charge form, but did verbally ask how they intended to get medical insurance. 

We defintely plan to have all supporting documents (going to print out the part from their site that states hubby is exempt from the I-864 and why as well). We are going to bring quotes of insurance we are looking at as well as advising that if i can locate work prior to moving back, that he will be added to that policy.   Sadly, mail and come and gone today and still no LDN number. 

[Stuwoolf 44]

With the USEL now returning to work and hopefully processing Spouse Visas, is there an Embassy website which could give indication of what Submission Date is being processed? Wouldnt expect it to be available so soon after returning but such a tool would be a very worthwhile indicator.

Edited July 28, 2020 by Stuwoolf

[FA081 9]

On 7/27/2020 at 2:52 PM, Wuozopo said:

Since you are in the DCF topic, are you a USC living in the UK? Do you have a job in the US now? Or one that will continue exactly same job/employer/salary when you move to the US? If not, you need a joint sponsor.

Thank you for your response! It makes sense now! And yes, USC was in the UK, but  Have now moved back to start my new job while the OH waits it out in the UK :(. 
 

I saw the public charge thing flying around in another post... isn’t that only required for AOS filings? Or have I completely misread that? Are we required to file the i-944(can’t recall the actually form, but I am sure you all know which one I am referring to) even with the DCF process? 

[Wuozopo 4,293]

1 hour ago, FA081 said:

Thank you for your response! It makes sense now! And yes, USC was in the UK, but  Have now moved back to start my new job while the OH waits it out in the UK :(. 
 

I saw the public charge thing flying around in another post... isn’t that only required for AOS filings? Or have I completely misread that? Are we required to file the i-944(can’t recall the actually form, but I am sure you all know which one I am referring to) even with the DCF process? 

You should fill out your profile...country, embassy, filed for: IR1/CR1 Visa (DCF). It makes it a lot easier for somebody to give you a decent answer. Get an employer letter stating your salary. You still have to submit the most recent tax return because that’s a basic requirement written the law, but the employment letter ought to get you approved with no joint sponsor.

 

I-944 is for AOS. K1s are filling those out after marriage as part of applying for their greencard. 

[Robyn-n-Kris 72]

8 hours ago, FA081 said:

Thank you for your response! It makes sense now! And yes, USC was in the UK, but  Have now moved back to start my new job while the OH waits it out in the UK :(. 
 

I saw the public charge thing flying around in another post... isn’t that only required for AOS filings? Or have I completely misread that? Are we required to file the i-944(can’t recall the actually form, but I am sure you all know which one I am referring to) even with the DCF process? 

What Wuozopo stated is correct. The form the embassy 'may' ask for is the DS-5540 (public charge form). This is new this year, and many have not been asked for it yet, but they have the option to request it. It is best to have it with you for the interview, along with any supporting documents.