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Filing Taxes while CR1 Process Ongoing

Filing Taxes while CR1 Process Ongoing

Old Feb 15th 2019, 8:00 am
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Default Filing Taxes while CR1 Process Ongoing

Hi all,

​​​​​​A quick tax question. I'm the UKC and my husband is the USC and we're currently going through our CR1 process (still waiting for NOA2). He'll be filing taxes pretty soon and I know he needs to file as "married" now, but my question is: do we do it jointly or separately? If he wants to file jointly I think the process is that I'd have to file a W-7 to get an ITIN since I don't have a SSN yet, and that can take up to 7 weeks. Is this correct?

Is it worth it in your opinion for the extra tax return dollars? I don't even know how much extra it would be. He makes upwards of $65k and together we make about $105k, no kids and we're not dependents.

Or is it just easier to do 'married, filing separately'? Any advice greatly appreciated!

​​​​
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Old Feb 15th 2019, 9:37 am
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Default Re: Filing Taxes while CR1 Process Ongoing

A lot has changed tax-wise this year. Probably have to work it out both ways to see which one is more advantageous.

Filing "married separately" is easier in that the UKC's income isn't considered at all.

Rene
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Old Feb 15th 2019, 12:16 pm
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Default Re: Filing Taxes while CR1 Process Ongoing

Married Filing Separately is the way to go, since filing jointly will do nothing but complicate matters. The only difference will be the doubled standard deduction, but since you have clearly made above that in the UK, it won't matter anyway. Why waste your time with an ITIN if you don't have too?
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Old Feb 15th 2019, 1:00 pm
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Default Re: Filing Taxes while CR1 Process Ongoing

If you elect to file jointly you will have a significant "bank" of excess foreign tax credits you can use at any point in the next 10 years. Longer-term this is therefore almost certainly the better option. You can both elect to file jointly by filing a valid election with wet signatures on paper with the IRS attached to your tax return. A US income tax return for 2018 is due to be filed by 17 June 2019; but can easily be extended until 16 December 2019 if necessary by filing an IRS Form 4868 by 17 June - followed by writing a letter to the IRS by 15 October 2019. An FBAR for 2018 must, however, if needed be filed with the US Treasury by 15 October 2019.
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Old Feb 16th 2019, 1:31 pm
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Default Re: Filing Taxes while CR1 Process Ongoing

Thank you all for your inputs! Filing separately does seem to be the easier option, but we'll have a chat and do some more research on the other option as well. Thanks again folks.
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Old Feb 17th 2019, 11:05 am
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Default Re: Filing Taxes while CR1 Process Ongoing

The wife and I were in a similar situation when we were going through the process. Our tax affairs are relatively simple but my good lady had a CPA familiar with immigrant situations run all the possibilities for the most advantageous outcome.
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Old Feb 23rd 2019, 2:43 pm
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Default Re: Filing Taxes while CR1 Process Ongoing

How does this changes regarding state taxes with a pending I-130 if the US spouse lives in a community property state.
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Old Feb 23rd 2019, 4:11 pm
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Default Re: Filing Taxes while CR1 Process Ongoing

Originally Posted by RecQuery View Post
How does this changes regarding state taxes with a pending I-130 if the US spouse lives in a community property state.
It doesn't change anything.

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Old Feb 23rd 2019, 5:20 pm
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Default Re: Filing Taxes while CR1 Process Ongoing

Originally Posted by Noorah101 View Post
It doesn't change anything.

Rene
Thanks replying, just wondering what would be best to put on the IRS 8958 form then, regarding SSN, etc.
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Old Mar 26th 2019, 12:23 am
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Default Re: Filing Taxes while CR1 Process Ongoing

Just an update on this for anyone else in the same boat. We decided to go the 'married filing separately' route.

Since I've done the research and if anyone wants to know: If we wanted to file jointly, I would need to file a W-7 to get an ITIN which also requires proving your identity by either sending your passport with the W-7 (not taking the risk) or going through an 'IRS acceptance agent' in the UK who would verify my identity. My husband would have to fill in his tax return, sign it, and then mail it to me so that I could add my data and provide a wet signature. This joint filing would then be processed, along with the W-7, through the acceptance agent here in London. The acceptance agents I looked at were charging over £500 for this service, which defeated the purpose for us in terms of getting extra cash with the joint tax return.
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Old Mar 26th 2019, 3:37 pm
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Default Re: Filing Taxes while CR1 Process Ongoing

Thanks for the update. Please note that when you finally get your visa and come to the US, you might want the accountant to go over that return with your additional UK income and with married filing joint see if there is an advantage for you. The return can then be amended.
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Old Mar 26th 2019, 3:39 pm
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Default Re: Filing Taxes while CR1 Process Ongoing

Originally Posted by Rete View Post
Thanks for the update. Please note that when you finally get your visa and come to the US, you might want the accountant to go over that return with your additional UK income and with married filing joint see if there is an advantage for you. The return can then be amended.
Hi Rete, yes, that's the plan! Thank you.
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