nica

I've started doing my taxes for 2011 so that I can include the more up-to-date (and higher salary) information on the I-864 for the CR-1 visa for my UKC husband. I'm slightly baffled by my "filing status", however.

If I choose "Married Filing Separately", then TurboTax requires me to include my husband's social security number. Obviously he does not yet have a SSN.

If I choose "Single", then I'm concerned about how that might look when I submit my tax returns to NVC. Will that seem suspicious, or normal?

Michael

You have to file married if you were married during that year. Your US tax returns have little bearing and you will likely need US pay stubs to prove your current US salary.

You may need to get an ITIN for your husband. Normally that can be requested when you file your taxes and a spouse or dependent is not currently available for a ss number.

http://www.irs.gov/individuals/artic...=96287,00.html

nica

I think you misunderstood my post... I don't have a foreign salary, for one. I'm a US citizen and I've been working in the US for all of 2011; my husband is a UK citizen and he's been working in the UK for all of 2011. We don't share any finances - he hasn't sent me money, I haven't sent him money, and we do not have a joint bank account.

Given that he has no obligation to file a tax return in the US, is it really necessary to get an ITIN? Can I just write "Non-Resident Alien" or something in the field for SSN?

Michael

I changed the post originally thinking you were in the UK also. Please re-read my post.

Michael

Maybe someone with more knowledge will come along but according to the following publication, he needs an ITIN. Unfortunately after looking at my Turbo Tax (Deluxe version), there isn't a W-7 form available.

http://www.irs.gov/pub/irs-pdf/p1915.pdf

nica

Hmm, okay. So I definitely can't file as single. Unfortunately, filing as "married filing separately" sticks me with the marriage penalty... really small tax refund.

Is filing a joint tax return a bad idea, from the point of view of immigration? Is that even possible, with him living outside the country?

Michael

Unfortunately you are going to get hit with a higher tax rate when married and filing separately instead of single. However I think Turbo Tax will still calculate and print the forms even if the social security number is blank. You can then manually fill out the W-7 form and include it with the tax return.

You might be able to file married filing jointly (not 100% sure) if you include his income on the US tax return and use his foreign income tax credits to offset taxes owed and that could possibly be beneficial. However, I'm not sure how you would then file state income taxes.

nica

Hmm... interesting! I'll do more research on all this, but thanks A LOT for pointing me in a few helpful directions. I'll check out the W-7 requirements and call the IRS on Monday for info on the joint tax return possibility.

Worst-case scenario, I'll just file married filing separate and figure the difference in taxes is my own personal contribution to paying off the debt

Michael

If you are allowed to file married filing jointly, use his pay stubs from January through December for taxes paid for the year and not his tax return since the UK has a different fiscal year than the US. He'll also have to report unearned income.

If that comes out better than married filing separately, then file that way if allowed.

ian-mstm

Y'know... there's no rule that says you have to use a software program to prepare your taxes! Just sayin'.

Ian

nica

Good point. It may be hurting more than it's helping this time!

Moxie

There's several things you have to do if you want to file jointly with a non-resident alien. You get an ITIN. Here's how it works.

Complete the return and leave the SSN blank.
Prepare the ITIN application.
Print out and file a paper return to a special filing location for this purpose, along with the ITIN application.
Internal Revenue Service
ITIN Operations
P.O. Box 149342
Austin, TX 78714-9342

They will process the ITIN first, add it to the tax return, then process your joint return. It will take longer this year and no e-filing.

Your return: If you want to file jointly
You each have to sign a statement declaring that you both want him to be treated as a resident alien for tax purposes. Otherwise a non-resident alien can't file jointly. But if he is married to a USC, then they can make the election. See Pub 519 around page 10 to see what has to be included in the statement.

In making that decision to file jointly, his UK income will be included. In TurboTax if you look at the page showing all possible income items, toward the bottom is a heading "Less Common Income". That's where you will find foreign income and report it. It will be Jan1-Dec 31 earnings converted to US dollars. Oanda.com has historical conversion rates if you need them. The income is self-reported and self-converted to US$ so there is no documentation that you actually mail to the IRS (like a W2 type report of wages).

The UK income can then be excluded (up to $92,900) using form 2555 or 2555EZ so it's not like you're being taxed on it. You are reporting it, then subtracting it. It's not quite that simple if the USC has capital gains because the total combined income will be used to figure the taxes on Schedule D worksheet---well that's more complicated than I want to explain---but you will likely see a better tax outcome filing jointly over married filing separately.

About the itin again...it's a little more complicated to get it for someone out of the country. Requires some documentation and is more than filling out a form W-7. http://www.irs.gov/individuals/artic...=96287,00.html

jeffreyhy

For most people in your situation it's probably a good idea to file Married-Joint - it was for me when my wife was still living in her country waiting for my petition to be approved.

Regards, JEff

jeffreyhy

And the USA has a different fiscal year than most US tax payers.

Regards, JEff

Michael

Yes, I meant that the tax year basis is different between the US and UK. The US government fiscal year is also different than the US tax year basis.