Income earned from non work sources(i.e. CD, bonds, stocks, etc)

[Bahrainexpat 12]

My wife and I married on 30-Sept-2022 after she arrived via K-1 visa in mid September. We yet to file AOS, as I am starting a new federal job next month and want to wait to file due to having an up to date I-864. I am considering buying some CDs and bonds in my wife's name, will that be an issue as she hasn't completed AOS and doesn't yet have EAD? 

[Adventine 3,201]

Does she at the very least have her SSN? Because when we bought I-Bonds earlier this year, we both had to provide our socials. Don't know how you're going to get around that requirement. 

 

On the other hand, if you're thinking about bond mutual funds, ETFs or other similar financial products, you will be able to name your wife as a beneficiary without an SSN, EAD or GC. But that's it. If you want her to have bond funds in her name, the big brokerages like Vanguard and Fidelity will typically ask for her SSN and/or proof of legal residency in the US before she can create her own account and purchase bonds.

[Bahrainexpat 12]

1 minute ago, Adventine said:

Does she at the very least have her SSN? Because when we bought I-Bonds earlier this year, we both had to provide our socials. Don't know how you're going to get around that requirement. 

 

On the other hand, if you're thinking about bond mutual funds, ETFs or other similar financial products, you will be able to name your wife as a beneficiary without an SSN, EAD or GC. But that's it. If you want her to have bond funds in her name, the big brokerages like Vanguard and Fidelity will typically ask for her SSN and/or proof of legal residency in the US before she can create her own account and purchase bonds.

Yes she has her SSN, sorry, forgot to mention that. We obtained her SSN the day after POE and had name changed last week after we married using our certified marriage certificate. 

Edited October 17, 2022 by Bahrainexpat

[Wuozopo 4,293]

1 hour ago, Bahrainexpat said:

My wife and I married on 30-Sept-2022 after she arrived via K-1 visa in mid September. We yet to file AOS, as I am starting a new federal job next month and want to wait to file due to having an up to date I-864. I am considering buying some CDs and bonds in my wife's name, will that be an issue as she hasn't completed AOS and doesn't yet have EAD? 

 The title,of your thread is “Income earned from non work sources”. Did you have a question about the income?

[Bahrainexpat 12]

Yes, the income(interest and capital gains) earned from instruments like CDs, bonds or stocks. 

5 minutes ago, Wuozopo said:

 The title,of your thread is “Income earned from non work sources”. Did you have a question about the inco

[Wuozopo 4,293]

21 hours ago, Bahrainexpat said:

Yes, the income(interest and capital gains) earned from instruments like CDs, bonds or stocks. 

What is the question about the above which is called unearned income by the IRS. So far you have only asked if your spouse can buy bonds. 

[Bahrainexpat 12]

5 minutes ago, Wuozopo said:

What is the question about the above which is called unearned income by the IRS. So far you have only asked if your spouse can buy bonds. 

The question was intended to ask if my spouse can earn income from interest from a CD, bond or capital gain from a stock if they purchase one. Would that be an issue if the cds, stocks or bonds were purchased in her name since she is not a citizen or green card holder? She has a SSN.

Edited October 17, 2022 by Bahrainexpat

[Wuozopo 4,293]

30 minutes ago, Bahrainexpat said:

The question was intended to ask if my spouse can earn income from interest from a CD, bond or capital gain from a stock if they purchase one. Would that be an issue if the cds, stocks or bonds were purchased in her name since she is not a citizen or green card holder? She has a SSN.

She can earn money from investments. She would have to file a tax return (to report the earnings) as a nonresident alien (1040NR) because she does not pass the greencard  or substantial presence tests. NRAs have a higher tax rate. (30% I think).

 

Or because she is married to a US citizen (I presume), she can file jointly with you despite not passing the tests to be a resident alien for IRS purposes. You submit a statement electing for her to be treated as a resident alien for tax purposes. A NRA can not file a joint return, but being married to a USC allows the perk of electing to be treated as a RA for income tax purposes. You will report worldwide income, including anything she earned abroad in 202, but she should be able to exclude her salary income (earned income) using the Foreign Earned Income Exclusion and not be taxed on it.

[Bahrainexpat 12]

Good to know, thank you.