2021 Taxes Marriage based AOS

[NanRob 9]

Hi!

 

I've searched the forums pretty extensively and I haven't seen anything about the issue I'm facing.

 

My now spouse (UK citizen) entered the US on a K1 in June. We got married shortly after that. He has a SSN and has yet to work in the US since arriving.

 

We want to file jointly and are using Turbo Tax (I'm paying extra to be able to state his Foreign Earned Income to then be excluded) and are treating him as a US resident since he passes the physical presence test.

 

My issue is that, after I have completed the steps in the Foreign Earned Income section on Turbo Tax, it generated the exclusion value to be 0 and showed the below message.

 

Has anyone else dealt with this, and if so, how can I correct it?

 

Thanks!

 

 

[Villanelle 4,122]

Does this help? It's a few years old but I don't think it's changed much. 

[iwannaplay54 985]

37 minutes ago, NanRob said:

Hi!

 

I've searched the forums pretty extensively and I haven't seen anything about the issue I'm facing.

 

My now spouse (UK citizen) entered the US on a K1 in June. We got married shortly after that. He has a SSN and has yet to work in the US since arriving.

 

We want to file jointly and are using Turbo Tax (I'm paying extra to be able to state his Foreign Earned Income to then be excluded) and are treating him as a US resident since he passes the physical presence test.

 

My issue is that, after I have completed the steps in the Foreign Earned Income section on Turbo Tax, it generated the exclusion value to be 0 and showed the below message.

 

Has anyone else dealt with this, and if so, how can I correct it?

 

Thanks!

 

 

Dont revoke the exclusion.  I dont know what you did but your husband can be treated as “resident for tax purposes”, declare his income, then exclude the income based on either physical presence or bonafide resident (of previous country) test.  If he arrived in June he should qualify for about half the exclusion under either category.  Run it again and try to figure out what you missed.  It’s a straight proration. His “physical presence” year ends 34 days after US entry and begins a year before that (1 full year with 330 days out of the country).  Either he has a significant amount of US presence (did he visit here?) or you entered something wrong.  You can use ANY 364 day year that overlaps last year and includes 330 days absent from the US.

Edited February 14, 2022 by iwannaplay54

[K1visaHopeful 2,858]

7 minutes ago, Villanelle said:

Does this help? It's a few years old but I don't think it's changed much. 

The linked previous post is for a tax filer with a GC.

Thats not you.

A K1 will file taxes on paper the first year.

[Loren Y 2,756]

40 minutes ago, K1visaHopeful said:

The linked previous post is for a tax filer with a GC.

Thats not you.

A K1 will file taxes on paper the first year.

My wife arrived on a K1 in November, and I filed taxes electronically with no issues the following March with no issues. She had her SS card, and no green card yet, and I filed. Only think you would have to file paper if the K1 arrival doesn't have their SS number yet, and then you file via paper with a ITIN request.

[K1visaHopeful 2,858]

59 minutes ago, Loren Y said:

My wife arrived on a K1 in November, and I filed taxes electronically with no issues the following March with no issues. She had her SS card, and no green card yet, and I filed. Only think you would have to file paper if the K1 arrival doesn't have their SS number yet, and then you file via paper with a ITIN request.

If you do not meet either of the two presence tests and must declare yourself a RA using the First Year Choice Rule, then you need to write a declaration letter and attach to your paper taxes.

[MaceMk 21]

I have a question. How does Turbo Tax or IRS know if the presence requirement has been met? We're filing taxes together soon through Turbo Tax online, my husband doesn't have his green card yet but has SSN since February last year when he arrived on a K1 and has worked since November. I couldn't figure out the physical presence requirement much cause it mentions three years or idk, but I assume he should be counted as a resident alien, so wouldn't have to file by paper with the separate statement, but I didn't see a question on Turbo Tax asking about this, so how do they check?

 

Thanks!

[Chancy 6,243]

*** Moved from AOS from K1 Visas forum to Tax & Finances During US Immigration -- topic is about filing taxes ***

 

[Wuozopo 4,293]

On 2/13/2022 at 9:55 PM, K1visaHopeful said:

The linked previous post is for a tax filer with a GC.

Thats not you.

A K1 will file taxes on paper the first year.

That link to my post still applies to the OP. They can efile. He is a resident alien for tax purposes based on being in the country long enough in 2021. There’s three ways for the OP’s K1 to be a resident alien for taxes—

1. Green card test ❌
2. Physical presence ✅
3. Elect to be a RA by writing a statement. Not needed because of #2.

The line numbers in that other post for have changed for 2021, so that reference needs an edit for the OP.

You will know your information was filled out properly if your form 1040 Line 1 includes the sum of:

1) The spouse's UK income

2) The US income

AND you will see on Schedule 1 line 8d, a negative number subtracting out your UK income.

 

@NanRob

[Wuozopo 4,293]

On 2/13/2022 at 10:39 PM, Loren Y said:

My wife arrived on a K1 in November, and I filed taxes electronically with no issues the following March with no issues. She had her SS card, and no green card yet, and I filed. Only think you would have to file paper if the K1 arrival doesn't have their SS number yet, and then you file via paper with a ITIN request.

Nope not correct about filing on paper only if you have no SSN. 

 

What you did was incorrect because your K1 wife arriving in November would not have a greencard or enough physical presence in the US (183 days) to file as a resident alien or jointly. By filing like you did, you basically told the IRS she qualified on one of those two things.

If done correctly, you would have each signed a statement “electing” for her to be treated as a resident alien for tax purposes based on being married to a USC. It would be a paper statement that had to be mailed in. But the IRS won’t check on little things like that so “Keep Calm and Carry On” mate. 

 

A simplified rule of thumb for most K1s — Arrive  before July1 and you have enough physical presence to file jointly and efile. Arrive later and you will have to count your days and probably need to write the statement and file by mail.  A SSN or ITIN is needed to file jointly.

[Wuozopo 4,293]

On 2/13/2022 at 9:17 PM, NanRob said:

Hi!

 

I've searched the forums pretty extensively and I haven't seen anything about the issue I'm facing.

 

My now spouse (UK citizen) entered the US on a K1 in June. We got married shortly after that. He has a SSN and has yet to work in the US since arriving.

 

We want to file jointly and are using Turbo Tax (I'm paying extra to be able to state his Foreign Earned Income to then be excluded) and are treating him as a US resident since he passes the physical presence test.

 

My issue is that, after I have completed the steps in the Foreign Earned Income section on Turbo Tax, it generated the exclusion value to be 0 and showed the below message.

 

Has anyone else dealt with this, and if so, how can I correct it?

 

Thanks!

 

 @NanRobAre you still around? I can help you but don’t want to go into a lot of detail if you have moved on. Also as an aside, I am curious how much online Turbo tax charges extra for the Form 2555. 

[Wuozopo 4,293]

On 2/14/2022 at 12:50 AM, MaceMk said:

I have a question. How does Turbo Tax or IRS know if the presence requirement has been met? We're filing taxes together soon through Turbo Tax online, my husband doesn't have his green card yet but has SSN since February last year when he arrived on a K1 and has worked since November. I couldn't figure out the physical presence requirement much cause it mentions three years or idk, but I assume he should be counted as a resident alien, so wouldn't have to file by paper with the separate statement, but I didn't see a question on Turbo Tax asking about this, so how do they check?

 

Thanks!

You’re good on days present. And no, TurboTax does not ask a specific question about you number of days, greencard, etc. You’re supposed to follow the IRS three year formula and work it out to know if you are qualified on days. Go back up a few posts to see what I said.

Edited February 16, 2022 by Wuozopo

[Loren Y 2,756]

19 minutes ago, Wuozopo said:

Nope not correct about filing on paper only if you have no SSN. 

 

What you did was incorrect because your K1 wife arriving in November would not have a greencard or enough physical presence in the US (183 days) to file as a resident alien or jointly. By filing like you did, you basically told the IRS she qualified on one of those two things.

If done correctly, you would have each signed a statement “electing” for her to be treated as a resident alien for tax purposes based on being married to a USC. It would be a paper statement that had to be mailed in. But the IRS won’t check on little things like that so “Keep Calm and Carry On” mate. 

 

A simplified rule of thumb for most K1s — Arrive  before July1 and you have enough physical presence to file jointly and efile. Arrive later and you will have to count your days and probably need to write the statement and file by mail.  A SSN or ITIN is needed to file jointly.

Actually I double checked,  she arrived in November,  but we didn't marry until the next year, so I filed single that tax year, it was the next year after marriage I filed mfj, and she had been here the whole year then. So it wasn't a issue.  I just remember getting her social security card the day after she arrived and thought I included her on that years taxes, but I didn't.  Guess I lost track of dates.

[MaceMk 21]

1 hour ago, Wuozopo said:

You’re good on days present. And no, TurboTax does not ask a specific question about you number of days, greencard, etc. You’re supposed to follow the IRS three year formula and work it out to know if you are qualified on days. Go back up a few posts to see what I said.

Yes, got it, thank you! It's nice to know we can file online! 

[K1visaHopeful 2,858]

3 hours ago, Wuozopo said:

That link to my post still applies to the OP. They can efile. He is a resident alien for tax purposes based on being in the country long enough in 2021. There’s three ways for the OP’s K1 to be a resident alien for taxes—

1. Green card test ❌
2. Physical presence ✅
3. Elect to be a RA by writing a statement. Not needed because of #2.

The line numbers in that other post for have changed for 2021, so that reference needs an edit for the OP.

 

You will know your information was filled out properly if your form 1040 Line 1 includes the sum of:

1) The spouse's UK income

2) The US income

AND you will see on Schedule 1 line 8d, a negative number subtracting out your UK income.

 

@NanRob

I wasn't responding to the OP.

I was responding to @Loren Ywho's K1 spouse arrived only in Nov.

See the quoted post for clarity.