Tax questions

[Henia 11]

If I am married, but my spouse is not living with me, do I have to claim them? Is there is any benefits tax wise being married, but the spouse living aboard? (I know my husband gets a tax break by our marriage in his country) but do I?

Also what is the Foreign Tax benefit?

Thanks everyone!

[payxibka 10,047]

If I am married, but my spouse is not living with me, do I have to claim them? Is there is any benefits tax wise being married, but the spouse living aboard? (I know my husband gets a tax break by our marriage in his country) but do I?

Also what is the Foreign Tax benefit?

Thanks everyone!

You have three possible choices when you have a non-resident alien spouse:

1) Married Filing Seperate

2) Married filing Joint (the caveat here is that you will need to declare his worldwide income as US based income)

3) Head of Household (the caveat here is that you need to have another qualifying person dependent on you other than your spouse)

On choice #1 and #3 you do not get your spouse as a claimed dependent.

Edited January 22, 2007 by fwaguy

[lisaf 0]

I apologize for the possibly stupid question, but when putting marital status in the return, does it mean at this point in time, or during the financial year passed?

My husband was divorced Dec 05 and we married Jan 07. So for 2006 taxes what does he put for marital status?

thanks

[Ban Hammer 13,469]

I apologize for the possibly stupid question, but when putting marital status in the return, does it mean at this point in time, or during the financial year passed?

My husband was divorced Dec 05 and we married Jan 07. So for 2006 taxes what does he put for marital status?

thanks

your status on 31 dec. he files single for 2006

[payxibka 10,047]

I apologize for the possibly stupid question, but when putting marital status in the return, does it mean at this point in time, or during the financial year passed?

My husband was divorced Dec 05 and we married Jan 07. So for 2006 taxes what does he put for marital status?

thanks

Marital status is your marital status of the last day of the year. If you were married on '07 then for '06 you both were single

[lisaf 0]

thanks guys

[Ban Hammer 13,469]

thanks guys

which, in retrospect, might have been an error in getting married in jan instead of a wedding in dec. would have made a major difference in the tax return.

[doodlebug 3]

thanks guys

which, in retrospect, might have been an error in getting married in jan instead of a wedding in dec. would have made a major difference in the tax return.

you're so romantic!

[Mr. Big Dog 10,747]

If I am married, but my spouse is not living with me, do I have to claim them? Is there is any benefits tax wise being married, but the spouse living aboard? (I know my husband gets a tax break by our marriage in his country) but do I?

Also what is the Foreign Tax benefit?

Thanks everyone!

You have three possible choices when you have a non-resident alien spouse:

1) Married Filing Seperate

2) Married filing Joint (the caveat here is that you will need to declare his worldwide income as US based income)

3) Head of Household (the caveat here is that you need to have another qualifying person dependent on you other than your spouse)

On choice #1 and #3 you do not get your spouse as a claimed dependent.

On option 2: Keep in mind that up to USD 80K (as of 2003 - check irs.gov for recent figure) of foreign earned income is exempt from US taxation. This means that you declare the income as gross income but get to deduct it before arriving at the AGI which is the basis for your taxation.

We made use of option 2 back in 2003 (we got married late in 2003) even though Nani only came to the US in Spring of 2004. It was a good deal for us tax wise. I calculated all ways through and found this to be the most beneficial option for us. Results may vary for others so do your own math on this.

Married filing separate is #######. I think there's a way around it so you can file single even if married if your spouse is a nonresident alien. I wouldn't bet my better parts on this but I thought during my tax investigation back then I ran across this "considered unmarried" or somesuch definition that seemed to fit my situation as the USC spouse of a nonresident alien back then.

Edited January 22, 2007 by ET-US2004

[Ban Hammer 13,469]

thanks guys

which, in retrospect, might have been an error in getting married in jan instead of a wedding in dec. would have made a major difference in the tax return.

you're so romantic!

well it is a good point isn't it?

[Mr. Big Dog 10,747]

thanks guys

which, in retrospect, might have been an error in getting married in jan instead of a wedding in dec. would have made a major difference in the tax return.

you're so romantic!

well it is a good point isn't it?

It is a good point. Same with the babies - rather have them born during the last days of December than on the first days of the new year.

[Henia 11]

Ok, so I donnot think I want to claim his income so I think I will just file as I have in the past as Head of Household with my child as my dependent. We got married in Sept so only married 3 months in 2006. And he is not dependent on me finanically so I could not claim him.

Another question: When he is here... of course we will living together, so we should file as joint married right? And if he comes and starts working soon, then but I still make more money... do we file joint or file seperate as him being one of my dependents or what? I guess what I am trying to ask is what is the difference btwn these 3 options if he were here...

1) Married Filing Seperate

2) Married filing Joint (the caveat here is that you will need to declare his worldwide income as US based income)

3) Head of Household (the caveat here is that you need to have another qualifying person dependent on you other than your spouse)

[payxibka 10,047]

It is a good point. Same with the babies - rather have them born during the last days of December than on the first days of the new year.

When my first child was born they decided to induce labor, we had a choice of December 27th to the 30th or after the New Year Holiday... guess what we chose....

Edited January 22, 2007 by fwaguy

[Mr. Big Dog 10,747]

Ok, so I donnot think I want to claim his income so I think I will just file as I have in the past as Head of Household with my child as my dependent. We got married in Sept so only married 3 months in 2006. And he is not dependent on me finanically so I could not claim him.

Another question: When he is here... of course we will living together, so we should file as joint married right? And if he comes and starts working soon, then but I still make more money... do we file joint or file seperate as him being one of my dependents or what? I guess what I am trying to ask is what is the difference btwn these 3 options if he were here...

1) Married Filing Seperate

2) Married filing Joint (the caveat here is that you will need to declare his worldwide income as US based income)

3) Head of Household (the caveat here is that you need to have another qualifying person dependent on you other than your spouse)

Read my post further up - the foreign earned income, while you need to include it with your gross income on the 1040, is usually excluded from US taxation up to 80K or so. The relevant form to look at would be the 2555 / 2555-EZ. That'll help you determine what part of the foreign earned income can be excluded. Once done, you do a calculation of taxes following option 2 and 3 and pick the option more favorable to you.

[Henia 11]

O ok Thanks