FBAR non resident spouse
Mar 31st 2011, 6:54 am
#1
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Thread Starter
Joined: Feb 2011
Posts: 6
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?
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?
Mar 31st 2011, 10:18 am
#2
redneck
Joined: Mar 2005
Location: essex
Posts: 10
Re: FBAR non resident spouse
i was led to belive u would have to file form I 130
Mar 31st 2011, 1:58 pm
#3
BE Enthusiast
Joined: Jun 2008
Posts: 450
Re: FBAR non resident spouse
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.)
Mar 31st 2011, 5:37 pm
#4
Joined: Apr 2005
Location: Milwaukie, Oregon
Posts: 9,966
Re: FBAR non resident spouse
He wouldn't normally haven't anything to do with the FBAR, but the way you have filed your taxes makes me wonder.
Apr 2nd 2011, 10:09 pm
#5
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Joined: Mar 2009
Location: Florida
Posts: 78
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.
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.
Apr 4th 2011, 6:15 am
#6
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Posts: 450
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.
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.
Apr 4th 2011, 4:05 pm
#7
Forum Regular
Joined: Mar 2009
Location: Florida
Posts: 78
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.
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.
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]
Apr 4th 2011, 4:26 pm
#8
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Re: FBAR non resident spouse
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]
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]
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.
Apr 4th 2011, 5:30 pm
#9
Forum Regular
Joined: Mar 2009
Location: Florida
Posts: 78
Re: FBAR non resident spouse
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!
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!
