Taxed for the year prior to becoming permanent resident

[UserC 25]

Hi everyone, I'm a bit confused regarding filing taxes for 2019.

 

Here's my situation:

- Married to USC

- Green card holder (IR1 stamped in February 2020)

- Lived abroad with my wife for the last couple of years and she filed her taxes as married filing separately

 

My question is related to filing for 2019. As I wasn't a permanent resident yet in 2019, am I right to assume that I shouldn't file? Can my wife file as "married filing jointly"?

 

Thanks a lot in advance!

 

[geowrian 22,337]

Option 1: MFJ

You elect to be treated as a Resident Alien (RA) for tax purposes. You can do this via this process: https://www.irs.gov/individuals/international-taxpayers/nonresident-alien-spouse

Advantage: Double the standard deduction

Disadvantage: You need an SSN or ITIN (presumably not an issue for you). You must report your entire worldwide income. You may be able to exclude the taxes caused by that income via the FEIE (2555/2555EZ).

 

Option 2: She files MFS. You don't need to file anything.

 

[UserC 25]

Thanks a lot for the swift reply!

If I go with option 2, what should I write under "Spouse Social Security Number" on the tax return ?  

 

In the past, we wrote "NRA" as I was a non resident alien. Should I do the same as I was a NRA in 2019 as well even though I do have a SSN now? 

 

Edited April 16, 2020 by UserC

[geowrian 22,337]

3 minutes ago, UserC said:

Thanks a lot for the swift reply!

If I go with option 2, what should I write under "Spouse Social Security Number" on the tax return ?  

 

In the past, we wrote "NRA" as I was a non resident alien. Should I do the same as I was a NRA in 2019 as well even though I do have a SSN now?

She should write your SSN there.

 

The only thing I would note is that you are likely leaving money on the table with MFS. I mean, you know your tax situations better than anybody else, but there's a few fairly niche circumstances where MFS provides an equal or better position than MFJ. I believe it saved my wife and I close to $5000 in taxes the year we did it because she had no US-based work that year.

[UserC 25]

Thanks a lot! All income for 2019 is subject to the Foreign Earned Income Exclusion in our case so not too worried about tax optimization.

 

Edited April 16, 2020 by UserC

[Ryan H 3,812]

Moved from IR-1/CR-1 Process & Procedures to Tax & Finances During US Immigration forum.