Green Card Holder taxes

[Kit1 2]

Hi folks, 

 

Grappling with filing US taxes for the first time, any thoughts appreciated. I'm a UK citizen, married an American in the US in Nov 2020, green card issued Nov 2021, started my first US job in Jan 2022.

 

As I understand it, my income to date in 2022 is not what is being taxed in this filing, however, as I have savings over $10,000 still in UK bank accounts, I do need to file the FBAR and Form 8938, and, I think I probably should have filed them in 2020 and 2021, too?

 

Other than UK interest on UK savings easily below $500/yr, I haven't any income while I've lived in the US, until this January. My husband therefore thinks we should file jointly, as my negative income + UK interest will be better balanced out by his income - sounds pretty reasonable, I think?

 

Additionally, I've been reading that UK govt Premium Bonds (acquired many years ago) are possibly considered as "gambling" by the IRS - anyone know anything about that? 

 

Thanks

 

 

 

 

 

 

 

[Wuozopo 4,293]

@Kit1

 

I think you and spouse would come out ahead filing a joint return. You have zero income to report (except some small amount of interest) and he will benefit by taking an extra standard deduction of $12,550 for you off his income. And you could claim your $1400 Economic Impact Payment if you did not already receive your share early in 2021. 
 

The FBAR due April 15, 2022 covers the year Jan 1 to Dec 31 2021. Did you on any day in 2021 have an aggregate of $10k in a foreign account. If yes file FBAR online. It is not part of the tax return.  You can also do a 2020 FBAR for your part year. I filed two years at the same time my first go round. No problem occurred because first year was delayed. 

 

Form 8938 is part of the tax return. Quoted from the IRS:

Married taxpayers filing a joint income tax return.

If you are married and you and your spouse file a joint income tax return, you satisfy the reporting threshold only if the total value of your specified foreign financial assets is more than $100,000 on the last day of the tax year or more than $150,000 at any time during the tax year.

Married taxpayers filing separate income tax returns.

If you are married and file a separate income tax return from your spouse, you satisfy the reporting threshold only if the total value of your specified foreign financial assets is more than $50,000 on the last day of the tax year or more than $75,000 at any time during the tax year.

 

I have no experience with premium bonds so can’t say for sure. I suppose if you won the monthly drawing, the winnings in 2021 would fit under “prize money” which is income in the US the same as if you won the lottery, Wheel of Fortune, or Jeopardy.

 

 

 

Edited March 26, 2022 by Wuozopo

[iwannaplay54 985]

Not any different than a lottery