Taxes During K-1 AOS - MFJ when USC is Student?

[slavaskii 886]

Hi all! Have a question that seems a bit specific for my circumstances, so wanted to ask here.

 

We're in the process of finalizing our tax return; I'm the USC, currently a student and have no income for the taxable year. My wife came to the US in June on a K-1 and is still waiting on EAD / GC, so she also has no income. As such, we have no tax liability.

 

I see posts here saying you should almost always MFJ, but in our circumstance, that wouldn't have any effect. Nonetheless, I would think it would be a good idea to MFJ as for the N-400, you apparently need to show 3 years of tax returns. My intuition would be that it would, therefore, be good to start with having a return now, despite her technically not even needing to file.

 

But I'm confused as to some of the subsequent questions if we do elect MFJ. For example, would she would be considered a 'dual status alien' for IRS purposes? She was here from mid June 2022, so she satisfied the substantial presence test after arrival; but what is this referring to, residence for taxation purposes or immigration purposes? If the latter, then no as we're still waiting on AOS. Moreover, as we're using a software, is there anything we should particularly look out for / be cautious of when filing these? As an example, are there certain questions on the tax form that could have negative immigration consequences (I'm imagining like on a driver's license application, how it asks if you're a citizen)? I'm terrible with these forms, so any guidance would be much appreciated. TIA.

[Mike E 11,741]

2 minutes ago, slavaskii said:

She was here from mid June 2022

1. Did she have income outside the U.S. in 2022?

 

2. Did it exceed $25,900?

 

3. Did she pay foreign income taxes on it in 2022?

[slavaskii 886]

Just now, Mike E said:

1. Did she have income outside the U.S. in 2022?

 

2. Did it exceed $25,900?

 

3. Did she pay foreign income taxes on it in 2022?

Thank you for your prompt reply! Nope, no foreign income at all - she graduated university before the war started and then moved countries while waiting on the K-1 to finish. 

[Mike E 11,741]

2 minutes ago, slavaskii said:

Thank you for your prompt reply! Nope, no foreign income at all - she graduated university before the war started and then moved countries while waiting on the K-1 to finish. 

Keep it simple. Treat her as a resident alien for all of tax year 2022. This is a simple tax return.

Edited April 16, 2023 by Mike E

[slavaskii 886]

2 minutes ago, Mike E said:

Keep it simple. Treat her as resident alien for all of tax year 2022. 

Thank you! So you would still recommend MFJ and answering "no" to whether she was a dual-status alien? From doing some searching on the forums, it looks like this implicates me writing some sort of note saying I'd like her to be considered a resident alien for tax purposes ... ? Again, I apologize for my ignorance on this, as a student for so long my returns have never been this complicated (lol). 

 

And as well - am I correct in my understanding that this would count towards the 3 year tax return requirement for the N-400? In my mind, that's the principal reason why we'd MFJ. 

[Mike E 11,741]

7 minutes ago, slavaskii said:

Thank you! So you would still recommend MFJ

yes just like any other K-1 couple. Including my wife and me.

 

Quote

and answering "no" to whether she was a dual-status alien?

yes. There is no financial benefit to claiming dual status. And even if there was, I would advise against it.
 

 

Quote

 

From doing some searching on the forums, it looks like this implicates me writing some sort 

Implicates you how? 

Quote

 

And as well - am I correct in my understanding that this would count towards the 3 year tax return requirement for the N-400? In my mind, that's the principal reason why we'd MFJ. 

Yes it would.

 

I went down this rabbit hole already in 

Pls read through that thread since you are not convinced.

Edited April 16, 2023 by Mike E

[slavaskii 886]

18 minutes ago, Mike E said:

yes just like any other K-1 couple. Including my wife and me.

 

yes. There is no financial benefit to claiming dual status. And even if there was, I would advise against it.
 

 

Implicates you how? 

Yes it would.

Wonderful! Thank you so incredibly much, we'll get that filed right away. And in reference to that 'letter,' I think I was misreading an earlier post; basically, I thought the IRS question was asking whether you were at one point a nonresident alien for taxation purposes who subsequently became a resident for taxation purposes in 2022. B/c the IRS' substantial presence test was satisfied after her arrival, I was thinking I'd have to put "yes" and also explain it somehow (I realize now my mistake). 

 

And if I may bother with one more thing, there shouldn't be any danger with using H&R Block to fill this out, right? I guess I'm just a little paranoid that when it starts auto-populating things, it may screw something up that could cause an immigration headache down the line.

 

Again, I appreciate your help so much, thank you.

 

EDIT: Thank you, I reviewed that thread. Take care!

Edited April 16, 2023 by slavaskii

[Mike E 11,741]

3 minutes ago, slavaskii said:

And if I may bother with one more thing, there shouldn't be any danger with using H&R Block to fill this out, right?

I’ve been a turbotax man since 1996 and I will die a turbotax man.

 

All I can say is that tax preparers who operate out of grocery stores, strip malls, etc. are notorious for cajoling tax filers who need to file MFS into filing as single.

 

I have heard good things about freetaxusa as well.

[JeanneAdil 6,583]

can u be claimed on parents tax returns

 

someone is supporting u,  so who?

Edited April 16, 2023 by JeanneAdil

[slavaskii 886]

Just now, JeanneAdil said:

can u be claimed on parents tax returns

 

 

No, as I'm 24; and I should clarify, though I have no employment, I do technically have limited income in terms of interest / capital gains. I've filed a return myself for a while now, however, as I was able to meet the requirements of the I-134 myself and wanted to have the accompanying tax returns so I wouldn't need a joint sponsor (ultimately USCIS requested one for the I-864, but I digress). Certainly not the most financially wise decision, but my rationale was that I always wanted to have things in my name when it came time to submit documents on my wife (then fiancee's) behalf. Thank you though for the suggestion!

[Sam Burns 157]

2 hours ago, slavaskii said:

But I'm confused as to some of the subsequent questions if we do elect MFJ.

Married filing jointly for those like me who were wondering what on earth you were talking about 😅

[SteveInBostonI130 3,471]

14 hours ago, slavaskii said:

We're in the process of finalizing our tax return; I'm the USC, currently a student and have no income for the taxable year. My wife came to the US in June on a K-1 and is still waiting on EAD / GC, so she also has no income. As such, we have no tax liability.

 

 

Does your wife have an SSN?

[slavaskii 886]

11 hours ago, SteveInBostonI130 said:

 

Does your wife have an SSN?

Yes, she has a SSN and driver's license (DC); the K-1 AOS guide was really helpful, just waiting on the EAD / AP / GC now. 

 

If I may, looks like another question has arisen - DC has a renter property tax credit, which looks like will issue a check. Given my wife is on both the lease and the return, the check would presumably be issued in both of our names. However, are we even allowed to accept this given she isn't allowed to earn income w/o the EAD or GC? I guess it's not really 'income,' and I would be the one to deposit it, but would this be allowed given her name would be on it? Just want to make abundantly sure; TIA and sorry for the constant questions on this. Thought it was done  

[Mike E 11,741]

2 hours ago, slavaskii said:

However, are we even allowed to accept this given she isn't allowed to earn income w/o the EAD or GC? I guess it's not really 'income,'

My take:

 

it is not earned income.

 

And it is not public charge.

 

https://coronavirus.dc.gov/sites/default/files/dc/sites/dhcf/release_content/attachments/Updated Public Charge FAQs 2021_Final.pdf

 

It won’t be taxable income if you take the standard deduction

 

 

2 hours ago, slavaskii said:

 

and sorry for the constant questions on this.

Not at all. You are asking your questions early since taxes aren’t due yet.