Tax stuff (US) and filing a W7

[Delicia 1]

I haven't filed a 2006 tax return yet. I had 0 income as I was too busy waiting on CIC that entire year so I am not obligated to file a return. I am trying to get my husband a TIN from the IRS so I can amend 2005 (the year we were married) and file 2006 with him listed. but the Chilean Consulate in Toronto will only give him a certified copy of his passport in Spanish. So, I will be taking his passport home with me on my next visit (over U.S. Thanksgiving) and sending that in to the IRS to get him his Tax Id Number. I didn't file any Canadian tax returns either as I was never legal to work nor did I have a SIN.

First question: Is it really necessary to do this? Should we just wait until he gets a SSN? It would increase my refund from 2005 and 2007, and no change on a 0 return for 2006. Does it assist in proving a bonafide relationship? (We have already been married for 2+ years so it is really necessary to worry about proving a relationship at this point?)

Second question: My income looks like ####### on the tax returns. 2005 is ok as I worked full time through August which is when I moved to Canada. 2006 = 0 income and I just started work again in Oct 2007, so my income will look really bad. Should I prepare to file with a joint sponsor even though my current income is more than enough? I am planning on getting a letter from my employer as well as copies of my pay stubs when we get closer to that stage.

[misa 2]

I'm the Canadian so I don't know that much about US tax returns but I thought that you had to file every year even if your income was zero? Also, your husband only needs an ITIN if you're filing jointly. If you file married filng separately he doesn't need an ITIN. That's what my husband did for 2006 taxes since I wasn't livinig here with him. We didn't want to file jointly since my Canadian income was so high (I also filed separately on my Canadian taxes). Someone correct me if I'm wrong?

Not sure about the joint sponsor though you may want to have someone lined up "just in case".

[misa 2]

Hey Delicia, if you file jointly, wouldn't you have to also put your husband's Canadian income amounts on your US tax return?

[Delicia 1]

Hey Delicia, if you file jointly, wouldn't you have to also put your husband's Canadian income amounts on your US tax return?

Yes, but a certain amount (the first ~$80k or so) is exempted from U.S. tax and it works the same way on the Canadian side.

[Eric_and_Corinna 0]

Hey Delicia, if you file jointly, wouldn't you have to also put your husband's Canadian income amounts on your US tax return?

I don't think you have to do that. I was looking over my tax returns, and I think you only report income made in the US on your US tax return. Unless you got a W-2, I don't think it gets reported. I'm not 100% sure about it, but I think this year my wife will file jointly in Canada showing me making no CDN income, and I will file jointly here using her assigned tax number and no income for her. I think it will also strengthen our case come interview time.

We're going to meet with her accountant next week. I'll update our progress there.

Hey Delicia, if you file jointly, wouldn't you have to also put your husband's Canadian income amounts on your US tax return?

Yes, but a certain amount (the first ~$80k or so) is exempted from U.S. tax and it works the same way on the Canadian side.

Where did you find that information? On the IRS website, or did your CPA tell you that?

[Delicia 1]

I am a CPA and I read that on the IRS site, I can look and see if I can find it again.... hold for link.

[Eric_and_Corinna 0]

I am a CPA and I read that on the IRS site, I can look and see if I can find it again.... hold for link.

Thanks...good luck with the AZDOT. I lived in Scottsdale briefly in the 90's and found them to be a total pain in the ###.

[trailmix 77]

It isn't necessary to file a U.S. return if you make under the threshold for the year of X number of dollars (it changes every year).

If you decide to file jointly for those years you will have to take his foreign income in to consideration and declare it, don't know if that will affect the benefit you were hoping to gain? There is the foreign earned income exclusion (was $82,400 for 2006), not sure how that would play in to your bottom line, depends how much he made. Nonresident Alien Spouse Treated as a Resident

I guess it might be taken in to consideration as proof of a bonafide relationship? Personally I filed married filing separately. I don't think you need to be too concerned about this as proof. You no doubt have all kinds of proof now, joint accounts, bills in both your names, car insurance etc etc?

As for your second question, I have seen this question a few times and in every case the person has been told that they are really only interested in your current income and that as long as you have the employer letter and paystubs it should be A-OK.

[Delicia 1]

Q: I am a nonresident alien. Can I file a joint return with my spouse?

Generally, you cannot file as married filing jointly if either spouse was a nonresident alien at any time during the tax year.

However, nonresident aliens married to U.S. citizens or residents can choose to be treated as U.S. residents and file joint returns. For more information on this choice, see Nonresident Spouse Treated as a Resident in chapter 1.

Figuring the Foreign Earned Income Exclusion

Limit On Excludable Amount

You may be able to exclude up to $82,400 of income earned during the tax year.

Limits

For each tax year, you cannot exclude more than the smaller of:

$82,400 (or other amount determined under Section 911 of the Internal Revenue Code), or

Your foreign earned income for the tax year minus your foreign housing exclusion.

Hope that answers your questions. Regardless, if my husband will be approved sometime in 2008, I might as well just wait and not include him (or his income) on prior taxes.

As far as filing a U.S. tax return, you do not have to file if:

(All amounts are for 2006 tax year and for those under age 65:)

If you are single and your income is below $8,450

Married, filing joint: $16,900

Married, filing seperately: $3,300

Head of Household: $10,850

Qualifying widow: $13,600

edit: Sorry trailmix, was busy cutting & pasting while you were posting. Redundancy can be a good thing I guess...

Edited October 27, 2007 by Delicia

[trailmix 77]

edit: Sorry trailmix, was busy cutting & pasting while you were posting. Redundancy can be a good thing I guess...

I like to think of it as backing up each others facts

Edited October 27, 2007 by trailmix

[misa 2]

Very interesting. Thanks for the clarification on the foreign income bit and other stuff!

Edited October 27, 2007 by misa