MrNovember

Hello,
New poster, long time follower of this site

I'm hoping to get some advice. My wife (USC) and I are applying for my IR1 status. We are currently awaiting 'packet 3' having had the I130 approved last month.

We're compiling our paperwork and have come across a potential issue with her tax forms...

We married in May 2012 however my wife's accountant entered her as Single on her tax returns. Also, we've realised that the accountant did not indicate her UK income (which is within the exemption but was not on her 1040) nor did he file form 2555.

We've seen the tax Wiki guide on here which is really useful....but we now wonder what we need to do? (Taxes filing with the US IRS in London : British Expat Wiki)

Does she need to re-file her last three years of taxes to a) include foreign income and b) change her status to married filing separately (and would this include 2012 and 2013 or just 2013 as we married partway through 2012)?

Will the US Embassy need three years of tax transcripts or will they be flexible as long as they see we have sufficient assets / earnings to sponsor me?

Sorry for such specific queries, hopefully a few of you will be able to have suggestions as I've seen people on here are very informed! Thanks for any advice!

(and yes, she intends to find another accountant this year, lesson learned!)

Noorah101

Yes, she needs to do an adjustment to re-file any of the years she was married (even partial year), and to include all worldwide income.

The US Embassy doesn't need transcripts, you can use a photocopy of the entire tax return.

So I take it she is using a combination of her current income plus assets at 3x the amount lacking in income to qualify financially?

Rene

MrNovember

Thanks Rene, we really appreciate your reply. We've been a bit panicked about this so it's reassuring to hear it's not too complicated (hopefully!).

In response to your query, yes she is able to qualify through current income and assets.

Do you know whether she can re-file via post to the US Embassy IRS office or must the re-file be done online? Thanks again!

Noorah101

Where is she currently living? I figured she was living in the USA, since she seems to have US based income?

I imagine she can re-file whichever way is most convenient for her, I don't think it matters.

Rene

ian-mstm

I suggest she fire the accountant. If she married at any time during the year, she files as married. The accountant should have also known that the US taxes her citizens on their worldwide income. The UK income should have been included on the 1040 and subtracted out later as having already been taxed.


She doesn't need to refile everything. She needs only to file amended returns making all the corrections. Take both the original returns and the amended returns to your interview.

Ian

MrNovember

Thanks both. Yes Rene she is in the UK (dual citizen US/UK) but has earnings and assets in both countries. Thanks Ian, we'll start working on making the amendments.

MrNovember

Sorry all, me again - can anyone advise around whether we should go the married filing separately vs married filing jointly route? We saw another post on this here

http://britishexpats.com/forum/usa-5...please-812603/

Seems perhaps the married filing separately is most time efficient and straightforward?

Will my earnings need to be reported to the US as a non resident alien?

Also if anyone knows of any good accountants for US taxes in the UK please do let us know!

Thanks again! Really appreciate the input on here!

Noorah101

She can do either one, whichever is more to her advantage. She could try both ways and see which one works better for her.

Rene

MrNovember

Thanks Rene! Man you all are fantastic!

janadeen

WOW!

That's a huge mistake / oversight.

A lesson to us all to carefully review your tax returns BEFORE, signing off on them.

MrNovember

She did see it however her accountant explained that because I don't have an SSN that she couldn't file as married. Hence the problem now...

janadeen

Interesting! I see ...

Indeed - that accountant deserves a swift kick.

Still - don't think I could've signed something saying I was single, when I was in fact married. (NOT JUDGING mrnovember - just making an observation.)

That accountant should've dug deeper for solutions. Then again, he's already proven himself a complete dolt.


Best of luck.