Taxes

[Anita Reynoso 5]

Hey all,

Hubby and I preparing documents for filling tax return for 2020 and we didnt get any clear answer regarding my earnings before I got my visa. If anyone can help I would be so grateful.

I came in USA in September 2020 and since then I didnt had any overseas earning, but I was working till my last day in Europe. Should I or should I not report my earnings before I become LPR??

[millefleur 5,046]

**Moved from General Polls to Tax & Finances During US Immigration**

[KULtoATL 1,551]

30 minutes ago, Anita Reynoso said:

Hey all,

Hubby and I preparing documents for filling tax return for 2020 and we didnt get any clear answer regarding my earnings before I got my visa. If anyone can help I would be so grateful.

I came in USA in September 2020 and since then I didnt had any overseas earning, but I was working till my last day in Europe. Should I or should I not report my earnings before I become LPR??

Look into something called Foreign Earned Income Exclusion and the Physical Presence Test here: https://www.irs.gov/individuals/international-taxpayers/foreign-earned-income-exclusion

 

I hope you have a SSN or you'd need an ITIN for tax filing.

 

What we did when we filed in 2018 for 2017 taxes:

 

1) We used TurboTax Deluxe because it took all the guessing games out in terms of what forms to file. Used it for both federal and state taxes.

2) Once filled out online, we printed both federal and state tax forms and signed where applicable.

3) Compose a letter to be sent in with your federal taxes. In this letter, yours and your American spouse's names, SSNs, home address must be stated. Also state that you're married filing jointly. The most important part, state that you opt to file your taxes as a Resident Alien. Then both of you guys will need to sign the letter. The letter is essential and in paper form, this is why you'd need to file paper for the first year. Come the second tax filing, you can file online using TurboTax or any other tax softwares easily.

 

In my first American taxes, all my foreign earned income was excluded so I paid taxes back home (prior to my permanent relocation to avoid any issues) and didn't pay any to IRS. It really depends on the result of the physical presence test according to IRS rules. And yes, even if you are not a GC holder yet and didn't come to America till September 2020, you should definitely file taxes with IRS. It's the smarter thing to do because I highly doubt you wanna be slapped with back taxes in the future. 

 

I know I sent in some documents as supporting in my first American taxes but I can't tell you what all because I'm at work and they are saved on a thumb drive at home 😅

[Wuozopo 4,293]

1 hour ago, Anita Reynoso said:

Hey all,

Hubby and I preparing documents for filling tax return for 2020 and we didnt get any clear answer regarding my earnings before I got my visa. If anyone can help I would be so grateful.

I came in USA in September 2020 and since then I didnt had any overseas earning, but I was working till my last day in Europe. Should I or should I not report my earnings before I become LPR??

You are a greencard holder and are considered a resident alien by the IRS for tax filing, so disregard preparing a letter as stated in the previous comment. 
 

You will get a better tax break by filing jointly. When you file jointly ALL earnings in 2020 anywhere in the world must be reported on your tax return. So yes, report your earnings before immigrating. That would be job earnings and any interest, dividends, etc earned from investments. Then use form 2555 to exclude your foreign earned income (earnings from a job). You will be not be taxed by the IRS on the foreign earnings that you reported.
 

A note on Form 2555: You have to qualify for the 2555 exclusion with either bonafide residence (Part ll) OR physical presence (Part lll). If you were born and bred in Germany, then you have been a bonafide resident since the date you were born. Then you leave Part lll blank because you meet the bonafide resident test.

[Anita Reynoso 5]

Thx for answers...we did planning to do taxes here married filling jointly, but clerics that we went ask for my earnings before residency in usa didnt know if I should or should not include it.

I did pay taxes in Germany, and even over pay them coz there is law if your spouse dont live with you or at same country then they tax you as single.