Go Back  British Expats > Living & Moving Abroad > USA
Reload this Page >

Dreaded Income Tax Question

Dreaded Income Tax Question

Old Jan 8th 2002, 12:55 pm
  #1  
Dawn
Guest
 
Posts: n/a
Default

I've done a search but haven't been able to find what I am looking for (or maybe my
search wasn't complete enough). Most posts I've read have mentioned joint tax returns
for AOS purposes, but if when I run the numbers and if we are better off filing
married but single returns, will this be a problem with the INS? I have always gotten
a decent refund in the past but now being married and with his income (only since
August though), I don't know which way will be best for us yet. Any words from the
wise who've been there/done that here?

Thanks,

Dawn
 
Old Jan 8th 2002, 1:19 pm
  #2  
Andy Platt
Guest
 
Posts: n/a
Default

If you are better off filing separately (from what I understand precious few couples
actually are better off) then file that way and damn the INS. Nobody says you have to
file jointly as a married couple to be a genuine married couple. I would have the
calculations with me to show why you filed that way.

In any case I'm sure you'll find that you end up better off filing jointly.

Andy.

--
I'm not really here - it's just your warped imagination.

    >
    >
    >
    >
    >
    >
    >
    >
    >
    >
    >
 
Old Jan 8th 2002, 7:05 pm
  #3  
Michael Voight
Guest
 
Posts: n/a
Default

Dawn wrote:
    >
    >
    >
    >
    >
    >
    >
    >

INS should expect you to spend more for taxes just to prove you are married. However,
since tax returns are mentioned as one evidence for I-751, then you might want to
include a statement indicating why you chose to file as single. If one of you is in a
higher tax bracket than the other, then it is usually better to file jointly. But do
it both ways to be sure. Good luck..

Michael
 
Old Jan 8th 2002, 7:56 pm
  #4  
Michael Voight
Guest
 
Posts: n/a
Default

Michael Voight wrote:

    >

I meant 'shouldn't'

    >
    >
    >
    >
    >
    >
 
Old Jan 8th 2002, 8:04 pm
  #5  
Concierge
 
Rete's Avatar
 
Joined: Apr 2001
Posts: 44,109
Rete has a reputation beyond reputeRete has a reputation beyond reputeRete has a reputation beyond reputeRete has a reputation beyond reputeRete has a reputation beyond reputeRete has a reputation beyond reputeRete has a reputation beyond reputeRete has a reputation beyond reputeRete has a reputation beyond reputeRete has a reputation beyond reputeRete has a reputation beyond repute
Default

No it should not be a problem. Both your returns will show that you filed married and both your returns will provide the same mailing address. If there is a question by the examiner than you are upfront and tell them you found that filing married but separate to be financially to your advantage.

Rita
Rete is offline  
Old Jan 9th 2002, 12:26 am
  #6  
Alvena Ferreira
Guest
 
Posts: n/a
Default

Rete wrote:
    >
    >
    >
    >
    >
Second that. Arnaldo and I filed seperately our first year due to financial
reasons...it was not a problem with INS OR IRS. alvena
 
Old Jan 9th 2002, 12:40 pm
  #7  
Dawn
Guest
 
Posts: n/a
Default

Thanks for the replies! I hope that filing this year won't be a big pain, and am
hoping it won't since I never have enough deductions to itemize. I think the biggest
problem might be trying to help my husband understand our tax system (esp. since I
don't really understand it!). It's so different from what he was used to in the UK.

Fingers crossed for a refund,

Dawn
 
Old Jan 10th 2002, 6:33 am
  #8  
Michael Voight
Guest
 
Posts: n/a
Default

Dawn wrote:
    >
    >
    >
    >
    >
    >
    >

Nothing to understand. Gather tax information. Buy good tax software and there
you are...

Michael
 
Old Jan 10th 2002, 11:48 am
  #9  
BE Enthusiast
 
Joined: Mar 2001
Posts: 717
Ameriscot is an unknown quantity at this point
Default

It doesn't matter to the INS how you file your taxes as long as it is legal and complete.

If your hubby has only been in the US since August, I would be amazed if it were beneficial to file separately - although it's possible depending on the amounts involved.
Ameriscot is offline  
Old Jan 10th 2002, 12:17 pm
  #10  
Alvena Ferreira
Guest
 
Posts: n/a
Default

Ameriscot wrote:
    >
    >
    >
    >
    >
We filed separately the first year, reason being that where Arnaldo had lived, they
had no taxes (casinos in macau pay the taxes for residents there and they have no
income taxes). We would have owed a *big* bunch had we not done that. By filing
seperately, Arnaldo was able to file only on what he had made since entering the US.
That was the single big advantage for our situation. However, for those who DID have
income tax in their home country, they are probably better off filing together. There
are tax treaties with most countries that preclude your having to pay "double tax".
(ie, they give you credit for what you paid in the home country toward your taxes in
the US for that year). Alvena
-----------------------
Doc Steen Site: http://www.mindspring.com/~docsteen/...o/visainfo.htm
=========================================
I am not a lawyer and this is not immigration advice. This is my personal opinion,
posted for the purpose of discussion only. Locate an immigration attorney in your
area at: http://www.aila.org
=========================================
 
Old Jan 10th 2002, 5:53 pm
  #11  
Michael Voight
Guest
 
Posts: n/a
Default

Ameriscot wrote:
    >
    >
    >

It does matter if you are short on other evidence. INS likes to see things in both
names when filing the I-751, I assume it wouldn't hurt on AOS either. In fact, tax
return is mentioned in the I-751 instructions. Will it stop you from getting the
conditions removed, no, not if you have enough other evidence.
 
Old Jan 10th 2002, 5:55 pm
  #12  
Michael Voight
Guest
 
Posts: n/a
Default

Alvena Ferreira wrote:
    >
    >
[usenetquote2]> > It doesn't matter to the INS how you file your taxes as long as it is legal and[/usenetquote2]
[usenetquote2]> > complete. If your hubby has only been in the US since August, I would be amazed[/usenetquote2]
[usenetquote2]> > if it were beneficial to file separately - although it's possible depending on[/usenetquote2]
[usenetquote2]> > the amounts involved.[/usenetquote2]
[usenetquote2]> >[/usenetquote2]
    >
    >
    >

Wouldn't he still have been able to deduct the $75000 or so if you filed jointly even
if the other country had no income tax?
 
Old Jan 10th 2002, 6:36 pm
  #13  
Concierge
 
Rete's Avatar
 
Joined: Apr 2001
Posts: 44,109
Rete has a reputation beyond reputeRete has a reputation beyond reputeRete has a reputation beyond reputeRete has a reputation beyond reputeRete has a reputation beyond reputeRete has a reputation beyond reputeRete has a reputation beyond reputeRete has a reputation beyond reputeRete has a reputation beyond reputeRete has a reputation beyond reputeRete has a reputation beyond repute
Default

Believe that is only if the country has a tax treaty in place with the US.

Rita
Rete is offline  
Old Jan 11th 2002, 9:37 am
  #14  
Michael Voight
Guest
 
Posts: n/a
Default

Rete wrote:
    >
    >

From IRS publication 64 page 11

Looks like the 2001 amount is $78000

You need to meet one of the following

1. Citizen of the US that is a bonafide resident of a foreign country or countries,
for a period that includes an entire tax year. (For instance you live there all of
2000, and part of 2001)

2. US Resident Alien who is a citizen of a country in which the US has a tax treaty
and is bonafide resident in a foreign country or countries for an uninterrupted
period that includes an entire tax year. (You citizenship would have to be with a
tax treaty country, but your work could have been done in other countries)

3. A US citizen or Resident Alien who is physically present in any foreign country or
countries for a period of 330 days out of any 12 consectutive months.

So, it looks like (for the alien) the tax treaty has to be with the country you are a
citizen of, not the country where the work is performed. So, a US citizen could work
in a country without an income tax and still deduct the foreign earnings up to $78000

I assume in Alvena's case that the country of citizenship and the country of
employment are the same. If an alien is not a citizen of a treaty country, they could
still qualify under item 3.

Michael

Michael
 
Old Jan 11th 2002, 6:28 pm
  #15  
BE Enthusiast
 
Joined: Mar 2001
Posts: 717
Ameriscot is an unknown quantity at this point
Default

The couple in question are from the UK, though. Therefore, they *can* deduct the $76,000 (pro-rata) from each UK-earned income. If this, together with mortgage interest deductions, is not enough to avoid US taxes, they can use the foreign tax credit. It's possible to pay US taxes on UK capital gains (because of the zero-band for UK taxes), but hopefully this can be offset with mortgage interest.

Certainly, if it were not possible to use the $76k foreign-earned income deduction due lack of tax treaty, and there were no income tax (in order to obtain a foreign tax credit) in that country, it would be better to file separately from the US spouse.

If borderline, it can be a good idea to prepare to file both ways (taking into account state and local taxes) and go with the one that's beneficial to you.
Ameriscot is offline  

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Contact Us - Archive - Advertising - Cookie Policy - Privacy Statement - Terms of Service - Do Not Sell My Personal Information -

Copyright © 2018 MH Sub I, LLC dba Internet Brands. All rights reserved. Use of this site indicates your consent to the Terms of Use.