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FBAR non resident spouse

FBAR non resident spouse

Old Mar 31st 2011, 6:54 am
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Default FBAR non resident spouse

Ok, what if:

Wife is US Citizen
Husband is British Citizen (no green card yet)

Filed US tax return as married filing jointly.

Both living in UK all year (no substantial presence test in the US).

British Husband (non-resident alien) needs to file FBAR?
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Old Mar 31st 2011, 10:18 am
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Default Re: FBAR non resident spouse

i was led to belive u would have to file form I 130
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Old Mar 31st 2011, 1:58 pm
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Default Re: FBAR non resident spouse

Originally Posted by zooqookoo View Post
Ok, what if:

Wife is US Citizen
Husband is British Citizen (no green card yet)

Filed US tax return as married filing jointly.

Both living in UK all year (no substantial presence test in the US).

British Husband (non-resident alien) needs to file FBAR?
It is my understanding that it is required of US citizens or legal residents, so I would say no to the British husband being required to file a separate one. You would be named as the principal joint owner of joint accounts (on her form.)
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Old Mar 31st 2011, 5:37 pm
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Default Re: FBAR non resident spouse

Originally Posted by zooqookoo View Post
Ok, what if:

Wife is US Citizen
Husband is British Citizen (no green card yet)

Filed US tax return as married filing jointly.

Both living in UK all year (no substantial presence test in the US).

British Husband (non-resident alien) needs to file FBAR?
Why have you filed married jointly, does he have a SSN or TIN. When we lived in the UK my wife (USC) didn't include me anywhere on her tax returns as I had neither a SSN or TIN, among other reasons.

He wouldn't normally haven't anything to do with the FBAR, but the way you have filed your taxes makes me wonder.
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Old Apr 2nd 2011, 10:09 pm
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Default Re: FBAR non resident spouse

I dont think you should be filing as married filing jointly . Your tax affairs have nothing to do with US until you become LPR or you meet substantial presence test. If spouse claimed married allowance $11400 she might get into a bit of bother down the road and have to pay additional taxes.
She needs to file married filing singly and report any accounts that she has signature authority in UK over $10,000. That includes any joint accounts.
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Old Apr 4th 2011, 6:15 am
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Default Re: FBAR non resident spouse

Actually it's legal and people do it all the time. People in the US waiting on a visa for a foreign spouse who has never entered the country do it (Ones from non-VWP countries who can't come). A person married to a US citizen gets special privileges. See page 10 of Publication 519 about electing for the non-resident alien to be treated as a resident alien for tax purposes. It has nothing to do with immigration status. It's an IRS perk.

Both spouses income must be declared, but the foreign income is excluded on form 2555. You can get an itin for the foreign spouse. Your send the itin application with the tax return to a special address in Austin, TX. (not your regular filing address). The itin is processed, added to the tax return, then the joint return is processed. Obviously no e-filing that year. The itin application requires proofs of identity. It's explained in the instructions.

The bonafide residence or substantial presence test to qualify for foreign income exclusion is about being a bonafide resident of the UK not of the US.
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Old Apr 4th 2011, 4:05 pm
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Default Re: FBAR non resident spouse

Originally Posted by Moxie View Post
Actually it's legal and people do it all the time. People in the US waiting on a visa for a foreign spouse who has never entered the country do it (Ones from non-VWP countries who can't come). A person married to a US citizen gets special privileges. See page 10 of Publication 519 about electing for the non-resident alien to be treated as a resident alien for tax purposes. It has nothing to do with immigration status. It's an IRS perk.

Both spouses income must be declared, but the foreign income is excluded on form 2555. You can get an itin for the foreign spouse. Your send the itin application with the tax return to a special address in Austin, TX. (not your regular filing address). The itin is processed, added to the tax return, then the joint return is processed. Obviously no e-filing that year. The itin application requires proofs of identity. It's explained in the instructions.

The bonafide residence or substantial presence test to qualify for foreign income exclusion is about being a bonafide resident of the UK not of the US.
Moxie
Thanks for the correction...I never knew this.
So is it possible to have a "double whammy" in that you can have a tax free allowance in the UK at the same time as a tax free allowance in the US??
All the time my USC wife was living with me in UK she always filed US returns married filing singly. Souds like we have lost out on a tax break?

With regards OP's original question about whether he needs to file FBAR...maybe OP can use the FBAR "help" email address to ask the question? [email protected]
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Old Apr 4th 2011, 4:26 pm
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Default Re: FBAR non resident spouse

Originally Posted by chopper40 View Post
Moxie
Thanks for the correction...I never knew this.
So is it possible to have a "double whammy" in that you can have a tax free allowance in the UK at the same time as a tax free allowance in the US??
All the time my USC wife was living with me in UK she always filed US returns married filing singly. Souds like we have lost out on a tax break?

With regards OP's original question about whether he needs to file FBAR...maybe OP can use the FBAR "help" email address to ask the question? [email protected]
I'm not following the double whammy question.

As to your wife, filing status would have been Married Filing Separately. Yes, it might have been a better tax deal to file joint, but maybe not. I just know about a person working in the US with a wife still abroad or a K1 fiance/spouse who entered the US but doesn't have a greencard yet. A non-resident alien (no greencard) can not file jointly, but they are allowed to if married to a USC and "elect" to be treated as a resident alien for tax purposes.
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Old Apr 4th 2011, 5:30 pm
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Default Re: FBAR non resident spouse

Originally Posted by Moxie View Post
I'm not following the double whammy question.
what I meant was that the OP (and also OP's USC spouse) can claim the personal tax allowance in UK of GBP6745 (about $10400 at current exchange rates)

AND ALSO
OP's USC spouse claims standard deduction for married filing jointly on US tax return for $11,400 (as compared to single deduction of $5700). OP has no tax to pay to IRS. OP's spouse gets a US double deduction on her worldwide income.

I guess all dual-citizen married couples have this benefit. I'm just surprised that marriage, and not immigration status affords this benefit. I thought the tax benefits of being married had to all extents evaporated in this day and age. Here is a clear example of a "perk" of marriage.

Maybe my thinking is muddled. Quite possibly!
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