tim42

- My wife entered on a K-1 visa last May and we married in July.
- She worked in her home country but not in the US in 2004.
- She applied for Permanent Residency but does not have it yet (interview is pending)

I understand that we can file a Joint Return (which benefits us) even though she's a Non-Resident Alien during 2004. However, to file Joint she would be considered a Resident Alien, and as such we have to report out Worldwide Income. Also my understanding, her foreign income would be excluded from US taxes up to $80,000 USD (using the exchange rate). So basically there is a lot of paperwork to show that she doesn't have to pay any US taxes and that we can still file Jointly as married.

My question: Exactly how the hell do we do this??

Going through the questions on TurboTax it tells me that I can't file a Joint Return if my spouse was a Non-Resident Alien. They don't know the exception apparently.

Is there some form required to fill out to see if you even qualify? Does she have to be in the US for 183 days or something like that in 2004 to do this?

Her home country (Australia) doesn't use calender years for taxes. Her tax forms don't tell her exactly how much she was paid in 2004. Can she calculate it herself and just include a letter with the tax return stating how much she made? What kind of evidence needs to be produced?

Should I just eat the 60 bucks I paid for tax software and hustle down to H&R Block and let the pros deal with this? Argh!!

I'm sure many of you have handled this in the past. Any pointers would be appreciated.

Noorah101

Hi Tim,

It sounds like your wife meets the substantial presence test to be considered a Resident Alien for Tax Purposes. Resident Alien means something different to the INS as opposed to the USCIS.

My husband and I just finished our tax appointment with a CPA. My husband also arrived on a K-1 visa in April 2004. We filed a "Married Filing Joint" return. I asked the CPA if we needed to sign a declaration stating we wanted my husband considered a Resident Alien for Tax Purposes, and he said that wasn't necessary. He only included my husband's income from his work in the USA, not his income in Turkey. He didn't pay taxes in Turkey. It was all very straightforward and smooth. I don't know why you can't go back to your Turbo Tax and put your wife in as a Resident Alien and go from there. Try that and see what happens. I don't see how your scenario would be that much different from ours.

Best Wishes,
Rene

ian-mstm

Being a resident for tax purposes is not the same as being a resident alien - and that may be what the program is suggesting. Anyway, while you may have to eat the $60, don't believe for a second that H&R Block has a clue about this. They're going to have to hunt through all the paperwork you're now hunting through... and they'll charge you for their time to boot! Since she's already paid tax on her income, the US does not require that the tax be paid twice. You declare her world income on the 1040, and near the end you deduct it back out as already taxed!


Yup - that's exactly right!

Ian

SundarV

First, she does not even have to be present in the US to be considered as resident alien (see page 10 in Pub 519). In my case, my wife was waiting for paperwork in India, I filed jointly with a letter saying she wants to be treated as resident alien. If you are married to a US citizen or resident alien,the spouse can declare herself as resident alien for tax purposes. Please read pub 519 and 54 which gives all the details.

You have to file form 2555 to exclude foreign income. Please keep in mind $80,000 is for whole year residence out of country. If it is only for half year, you may be able to exclude only 50%.

Please read IRS pub 519 and 64thoroughly and you will know how to proceed.

I used taxcut to do the filing, which gave me the form 8825. I would assume Turbo Tax should also give it. Did it again this year as wife arrived on Dec 2004 with Taxcut and got refund last week.

Hope this helps
Sundar