Am I required to declare my husband's foreign income?

[emma24 161]

Hello!

I am currently working on filing my taxes for 2021. However, I am a little confused on whether I need to declare my now husband's income that he had in Norway prior to moving to America as a K1....He worked in Norway up until he moved here in July 2021. We got married in August 2021 and he received his green card in January 2022. Do I have to declare the income he made in Norway before he became a US legal resident in January 2022? Thanks for any help!

[Crazy Cat 41,844]

Sounds like he is not required to file for 2021......but you will have to file Married- Filing Separately.  If you file a joint return, he MUST report his world-wide income for all of 2021.  

I always suggest new immigrants consult a competent tax professional the first year to run the numbers to find the best tax strategy.

 

Edited March 12, 2022 by Crazy Cat

[JeanneAdil 6,498]

he came in july but no  green card till January 2022 

u married in 2021 so u can claim him (to your advantage)

BUT since he was not a LPR in 2021 u can not claim the exclusion for foreign income

 

Publication 519 from IRS has the answers needed but it is hard to wade thru

its "if u this and if u that "and back and forth from section to  section/ IRS doesn't make this easy

 

a tax professional (who is privy to your income and circumstances as we are not ) is needed to guide u

tax attorney or a good qualified certified accountant / please no over the counter tax preparer 

[emma24 161]

Thank you @Crazy Cat and @JeanneAdil. After researching and reading up on the IRS website, we determined that if I filed jointly, we'd have to declare his worldwide income and if filing separately, we would not.

[JeanneAdil 6,498]

under part II of the form 2555 spouse qualifies for exemption as Norway has tax treaty with US

he does not have to file if u do the MFS as not a green card LPR  

so,  up to u which is best 

download the 1040 and try both ways

 

Read form 2555 instructions 

 

$112,000 per person

Part II

Note: Only U.S. citizens and resident aliens who are citizens or nationals of U.S. treaty countries can use this test. See instructions

[Wuozopo 4,293]

4 hours ago, emma24 said:

Hello!

I am currently working on filing my taxes for 2021. However, I am a little confused on whether I need to declare my now husband's income that he had in Norway prior to moving to America as a K1....He worked in Norway up until he moved here in July 2021. We got married in August 2021 and he received his green card in January 2022. Do I have to declare the income he made in Norway before he became a US legal resident in January 2022? Thanks for any help!

He has no US income in 2021 so has no income to be taxed and nothing to file. You would file Married Filing Separately but that has a higher tax rate.

 

-OR-

 

If you want to file a joint return (which will most likely be an advantage moneywise) then you must report worldwide income of both spouses. All money earned in any country in 2021. Does he have a SSN? That’s an important part.

Reporting his income does not mean they are going to tax his income. He can take advantage of the Foreign Earned Income Exclusion (Form 2555).  You get the benefit of an extra standard deduction on a joint return. That reduces your income by $25,100 before tax is calculated. Filing separately, the deduction is only $12;550. Meanwhile tax that his reported income would generate is taken off. So your benefit is the lower joint rate and the extra $12,550 standard deduction to reduce your taxable income because he is on the return as a joint filer.  And as a bonus, he likely qualifies for the third economic stimulus payment of $1400 by filing. SSN required.
 

How do you normally do taxes, yourself or take them to a tax preparer? 

Edited March 12, 2022 by Wuozopo

[Crazy Cat 41,844]

1 hour ago, emma24 said:

Thank you @Crazy Cat and @JeanneAdil. After researching and reading up on the IRS website, we determined that if I filed jointly, we'd have to declare his worldwide income and if filing separately, we would not.

That is exactly what I stated....."If you file a joint return, he MUST report his world-wide income for all of 2021.  "

Edited March 12, 2022 by Crazy Cat

[Ayrton 965]

On 3/12/2022 at 3:05 PM, JeanneAdil said:

under part II of the form 2555 spouse qualifies for exemption as Norway has tax treaty with US

he does not have to file if u do the MFS as not a green card LPR  

so,  up to u which is best 

download the 1040 and try both ways

 

Read form 2555 instructions 

 

$112,000 per person

Part II

Note: Only U.S. citizens and resident aliens who are citizens or nationals of U.S. treaty countries can use this test. See instructions

How many more times do we need to tell you that a tax treaty (nor a GC like you mentioned earlier) is required to exclude foreign earned income when physical presence test is met?

 

OP. Ignore the answers from JeanneAdil. They keep posting misinformation about Foreign Earned Income requirements in this forum. 

 

If you want to file jointly, the foreign earned income must be reported, but will be excluded with form 2555. Just remember that foreign income will increase the Total Income on the return, so you might not be eligible for some credits that are income dependent, even if part of this income is being excluded. You will have to run all the calculations and see what's better for you.