Help filing taxes, first time with K-1 spouse

[H&G 60]

First off..I'm sorry for asking questions that have probably been asked on here multiple times, but I've spent the last several hours looking for information and have become completely overwhelmed. I'm even more confused than I was before. I just want someone to explain to me in the simplest way possible, what forms I'm going to have to complete and send, and to where they need to be sent. My husband came over in September last year from Germany with the K-1 visa and we were married in November. We are currently in the adjustment of status process, he went for biometrics and now we're playing the waiting game. He was employed in Germany up until August of last year and his mother filed his taxes for him over there already. From what I do understand, we can file jointly as a married couple with him as a resident alien rather than a non-resident alien. We would be using the 1040 (just the 1040, no other version with letters behind it) and include a statement explaining that we both want to be treated as U.S citizens for the tax year of 2019. He does have a SSN which I know needs to be included on the statement and forms. What I don't understand is the difference between Form 1116 and 2555...I've seen both suggested but I don't know which one is more appropriate. I've also seen someone mention FBAR and Form 8939. I don't want to waste time on forms that we really don't need to do. I'm also confused about all these other exemptions I've heard about..bona fide residence test, physical presence test, etc. and how they are applied. If I just file married but separately, does he still have to file anything? Anyone willing to help me out?  

[Crazy Cat 41,898]

You also need to research Form 8938 and FBAR reporting.  I would suggest you consult a competent tax pro who is experienced in new immigrants for your taxes this year.  A competent tax pro will run the numbers in different ways to determine the lowest tax liability...

[Lil bear 4,225]

17 minutes ago, H&G said:

First off..I'm sorry for asking questions that have probably been asked on here multiple times, but I've spent the last several hours looking for information and have become completely overwhelmed. I'm even more confused than I was before. I just want someone to explain to me in the simplest way possible, what forms I'm going to have to complete and send, and to where they need to be sent. My husband came over in September last year from Germany with the K-1 visa and we were married in November. We are currently in the adjustment of status process, he went for biometrics and now we're playing the waiting game. He was employed in Germany up until August of last year and his mother filed his taxes for him over there already. From what I do understand, we can file jointly as a married couple with him as a resident alien rather than a non-resident alien. We would be using the 1040 (just the 1040, no other version with letters behind it) and include a statement explaining that we both want to be treated as U.S citizens for the tax year of 2019. He does have a SSN which I know needs to be included on the statement and forms. What I don't understand is the difference between Form 1116 and 2555...I've seen both suggested but I don't know which one is more appropriate. I've also seen someone mention FBAR and Form 8939. I don't want to waste time on forms that we really don't need to do. I'm also confused about all these other exemptions I've heard about..bona fide residence test, physical presence test, etc. and how they are applied. If I just file married but separately, does he still have to file anything? Anyone willing to help me out?  

FBAR 

https://www.irs.gov/newsroom/taxpayers-with-foreign-assets-may-have-fbar-and-fatca-filing-requirements-in-june
 

Your spouse doesn’t have his green card yet so doesn’t meet the IRS LPR residency test .. depending how long he has spent in the US over the past 3 years , he may or may not need the IRS. physical presence test. If he does then he must file ... 

 

 

[Wuozopo 4,293]

3 hours ago, H&G said:

First off..I'm sorry for asking questions that have probably been asked on here multiple times, but I've spent the last several hours looking for information and have become completely overwhelmed. I'm even more confused than I was before. I just want someone to explain to me in the simplest way possible, what forms I'm going to have to complete and send, and to where they need to be sent. My husband came over in September last year from Germany with the K-1 visa and we were married in November. We are currently in the adjustment of status process, he went for biometrics and now we're playing the waiting game. He was employed in Germany up until August of last year and his mother filed his taxes for him over there already. From what I do understand, we can file jointly as a married couple with him as a resident alien rather than a non-resident alien. We would be using the 1040 (just the 1040, no other version with letters behind it) and include a statement explaining that we both want to be treated as U.S citizens for the tax year of 2019. He does have a SSN which I know needs to be included on the statement and forms. What I don't understand is the difference between Form 1116 and 2555...I've seen both suggested but I don't know which one is more appropriate. I've also seen someone mention FBAR and Form 8939. I don't want to waste time on forms that we really don't need to do. I'm also confused about all these other exemptions I've heard about..bona fide residence test, physical presence test, etc. and how they are applied. If I just file married but separately, does he still have to file anything? Anyone willing to help me out?  

 

Which forms are in the tax return are always dependent on your sources of income so nobody can make a list specific to you. There’s a gazillion forms. At minimum a new K1 spouse on your return will have

• Form 1040
• Schedule 1
• Form 2555

And you include the statement as you described so he is allowed to file a joint return with you.

 

Your 2018 return might give you a clue as to what other forms you typically file if you have interest, dividends, self-employment, etc.

 

When filing jointly, the income of each spouse earned anywhere in the world is reported. You have two choices for reducing taxation on the foreign income. You can only use one or the other. No double dipping.

 

Form 2555 is the Foreign Earned Income Exclusion which excludes the US taxes his income would generate. 

 

Form 1116 allows you to get a credit for the income tax he already paid to Germany for 2019 calendar year wages earned.(Sorry I don’t know if Germany’s tax year runs Jan 1-Dec 31 which would simplify your  calculations for taxes paid). In this scenario, you are taxed fully on the US and foreign income. Then you deduct a credit for what he paid to Germany for 2019 calendar year.

FBAR is not a tax form and has nothing to do with income tax. It is a report (online) to notify the Treasury Dept of any foreign bank accounts held only if the total foreign exceeds $10,000. Name of bank(s), address, account number, and highest balance at anytime during the year.  It is not taxed. It is an informational report.

 

FORM 8938 aka FATCA is a similar report if yours or his foreign accounts, holdings, pensions, etc exceed $100,000. Again, there is no tax. It is an informational report.  Any interest or gains earned in a year are taxable, so it’s a way to identify rich people with secret foreign accounts who have be dodging taxes on the earning they get from the foreign investments.

Edited February 7, 2020 by Wuozopo

[AD88 0]

Hey guys, is the foreign earned income reported on a 1040FEC? Thanks!

[Wuozopo 4,293]

40 minutes ago, AD88 said:

Hey guys, is the foreign earned income reported on a 1040FEC? Thanks!

Not familiar with that term. Different tax programs use their own terms. Which one are you using?

1040FEC is not an IRS term or form.