Joint taxes
#1
Just Joined
Thread Starter
Joined: Apr 2016
Posts: 21
Joint taxes
Was wondering if anyone has experience of joint taxes .
I came to the USA on k1 in march and we got married in April . I have been lucky with work and managed to do work till next month . We have our interview next Monday and just got my employment card yesterday.
As I understand that my wife has to do her taxes early next year , do we include my income that I made from January? I have already paid taxes etc on my wages in the uk .
Sorry if this has been posted already .
I came to the USA on k1 in march and we got married in April . I have been lucky with work and managed to do work till next month . We have our interview next Monday and just got my employment card yesterday.
As I understand that my wife has to do her taxes early next year , do we include my income that I made from January? I have already paid taxes etc on my wages in the uk .
Sorry if this has been posted already .
#2
Re: Joint taxes
It may be advantageous to file taxes jointly, and if you do so you would claim a credit for tax already paid in the UK on your income in the UK.
That said, the best/ideal way is to calculate taxes both separately and jointly, and with you filing a split (partial) year, or taking a deduction, and see which leads to the smallest tax bill.
That said, the best/ideal way is to calculate taxes both separately and jointly, and with you filing a split (partial) year, or taking a deduction, and see which leads to the smallest tax bill.
#3
Re: Joint taxes
It may be advantageous to file taxes jointly, and if you do so you would claim a credit for tax already paid in the UK on your income in the UK.
That said, the best/ideal way is to calculate taxes both separately and jointly, and with you filing a split (partial) year, or taking a deduction, and see which leads to the smallest tax bill.
That said, the best/ideal way is to calculate taxes both separately and jointly, and with you filing a split (partial) year, or taking a deduction, and see which leads to the smallest tax bill.
#4
Forum Regular
Joined: Mar 2015
Posts: 40
Re: Joint taxes
It would be better to file married filing separately (MFS) if you start working between now and the end of the year. If you have worked since you arrived in march then Married Filing Jointly is probably better for you but without knowing the amounts it will be tricky.
The others above have mentioned that you could elect to file as married filing jointly, however this does take into account all foreign earned income earned in that calendar year.
The situation that you have described is that of a dual status alien. Essentially if you file MFS you will only be taxed on the income that is from the time that you are working in the states for that tax year. So if you work and make about $10k that will be practically tax free at both a state and federal level so its an option worth considering
The others above have mentioned that you could elect to file as married filing jointly, however this does take into account all foreign earned income earned in that calendar year.
The situation that you have described is that of a dual status alien. Essentially if you file MFS you will only be taxed on the income that is from the time that you are working in the states for that tax year. So if you work and make about $10k that will be practically tax free at both a state and federal level so its an option worth considering
#5
Re: Joint taxes
You don't know that to be a fact - you would need to know all the OP's income before and after entering the US, as well as information about his allowable deductions and expenses, not mention his spouse's income and chargeable gains, deductions and expenses, to be able to determine which is the best tax strategy. Even a tax professional wouldn't say "we're going to do it this way" without working the numbers both ways and comparing the outcome.
Last edited by Pulaski; Sep 25th 2017 at 10:12 pm.
#6
Re: Joint taxes
You don't know that to be a fact - you would need to know all the OP's income before and after entering the US, as well as information about his allowable deductions and expenses, not mention his spouse's income and chargeable gains, deductions and expenses, to be able to determine which is the best tax strategy. Even a tax professional wouldn't say "we're going to do it this way" without working the numbers both ways and comparing the outcome.
#7
Re: Joint taxes
The situation that you have described is that of a dual status alien. Essentially if you file MFS you will only be taxed on the income that is from the time that you are working in the states for that tax year. So if you work and make about $10k that will be practically tax free at both a state and federal level so its an option worth considering
I don't see how income earned prior to becoming a LPR needs to be declared.
I know my wife and I will be trying out a few scenarios in TurboTax to lawfully minimize our tax burden. Something to look forward to early next year.
Also, I'm amused by the fact that America broke away from the UK due to 'no taxation without representation', yet, those of us who are not citizens but still pay taxes don't get to vote! Talk about double standards
#8
Re: Joint taxes
.... I don't see how income earned prior to becoming a LPR needs to be declared. ....
#12
Forum Regular
Joined: Mar 2015
Posts: 40
Re: Joint taxes
The other posters are correct that it depends on what you earn and what your spouse earns and the net effective tax rate that you would come out at.
That being said, you are only allowed to use the foreign tax credit(FTC) on taxes that you do not expect to be refunded. In the year of arrival it provides you with an opportunity to claim your U.K. income tax back in the current tax year using P85 which you cannot use towards the FTC.
The reason why I argue that MFS may be favorable is that you can file as a dual status alien on the money that you earn between now and the end of the year. This means you would be in the effective rate of 0%-15% federal bracket unless you are a high earner. It's either that or your total income throughout the year is
If you file MFS your income in the U.K. that you earn prior to the day that you enter in the U.S. is excluded from the calculation.
As the others have mentioned be sure to compare both when sitting down to doing your first set of taxes.
Enjoy your first U.S. tax filing experience
That being said, you are only allowed to use the foreign tax credit(FTC) on taxes that you do not expect to be refunded. In the year of arrival it provides you with an opportunity to claim your U.K. income tax back in the current tax year using P85 which you cannot use towards the FTC.
The reason why I argue that MFS may be favorable is that you can file as a dual status alien on the money that you earn between now and the end of the year. This means you would be in the effective rate of 0%-15% federal bracket unless you are a high earner. It's either that or your total income throughout the year is
If you file MFS your income in the U.K. that you earn prior to the day that you enter in the U.S. is excluded from the calculation.
As the others have mentioned be sure to compare both when sitting down to doing your first set of taxes.
Enjoy your first U.S. tax filing experience