Part-year tax return
#1
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Joined: Jul 2014
Location: Ponte Vedra Beach
Posts: 6
Part-year tax return
Any help or advice would be greatly appreciated!
Myself (green card holder) and my husband (US citizen, but born and raised in the UK) moved to the States in June 2014. From January to June 2014 we lived and worked in the UK - paying UK taxes. From June 2014 to present we have lived in the US and I have been working and paying US taxes.
Now we have to file taxes. I tried using a 2555EZ, then calculating this into a 1040 alongside the figures from my W2. The problem being that 'in a part tax year, the standard deductions on the 1040 do not apply'. ie/ the deduction is for a 12 month period, but I am only paying tax on 6 months.
I have tried Turbo Tax, which would not work for me as I am not a US citizen. So I relented and went to HR Block - who seem to be having a worse time than us figuring it out.
Does anyone know how to file taxes in your first part-year resident in the US?
Thank you in advance!
Myself (green card holder) and my husband (US citizen, but born and raised in the UK) moved to the States in June 2014. From January to June 2014 we lived and worked in the UK - paying UK taxes. From June 2014 to present we have lived in the US and I have been working and paying US taxes.
Now we have to file taxes. I tried using a 2555EZ, then calculating this into a 1040 alongside the figures from my W2. The problem being that 'in a part tax year, the standard deductions on the 1040 do not apply'. ie/ the deduction is for a 12 month period, but I am only paying tax on 6 months.
I have tried Turbo Tax, which would not work for me as I am not a US citizen. So I relented and went to HR Block - who seem to be having a worse time than us figuring it out.
Does anyone know how to file taxes in your first part-year resident in the US?
Thank you in advance!
#2
Re: Part-year tax return
You would probably benefit from filing a "dual status" return (which is the technical name for filing for a part year).
You should however compare the result of a dual status return to filing as a US resident, which would mean including income from outside the US between 1/1/14 and your arrival in the US, which although counter-intuitive, would allow you to claim the "standard deduction" (from gross income) which means that it can be beneficial for some filers to file as a resident for the whole year.
You should however compare the result of a dual status return to filing as a US resident, which would mean including income from outside the US between 1/1/14 and your arrival in the US, which although counter-intuitive, would allow you to claim the "standard deduction" (from gross income) which means that it can be beneficial for some filers to file as a resident for the whole year.
#3
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Joined: Jul 2010
Posts: 38
Re: Part-year tax return
I arrived August last year on L1 and filed fine with Turbo Tax (although had to post rather than e-file due to no SSN for the kids). Have I done something wrong?
#4
Re: Part-year tax return
If you used some sort of hybrid approach, declaring only your US income but taking the full annual deduction (allowance), then your return is definitely incorrect. If you receive a refund on the basis of your return I strongly recommend that you do not cash the check.
Last edited by Pulaski; Apr 8th 2015 at 1:55 pm.
#5
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Joined: Apr 2013
Posts: 5,154
Re: Part-year tax return
A dual status tax return can _not_ be completed via TurboTax, so unless you declared all worldwide income, then yes I'm afraid you have very much done it wrongly. You will need to re-file an amended return.
My advice? Get an accountant / tax preparer to do this for you.
#6
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Joined: Jul 2010
Posts: 38
Re: Part-year tax return
The advice is very much appreciated. I'll seek further professional guidance.
PwC advised that I file dual status through Turbo tax knowing my full situation as they supported through the relocation. I was clear about the date I became resident on the filing (1st August last year) and declared that I had been tax resident in France up to that date. Does that not cause Turbo Tax to automatically therefore only allow for part year deductions?
Thanks again.
PwC advised that I file dual status through Turbo tax knowing my full situation as they supported through the relocation. I was clear about the date I became resident on the filing (1st August last year) and declared that I had been tax resident in France up to that date. Does that not cause Turbo Tax to automatically therefore only allow for part year deductions?
Thanks again.
#8
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Joined: Jul 2010
Posts: 38
Re: Part-year tax return
only when the funding for fees runs out :-)
#9
Banned
Joined: Apr 2013
Posts: 5,154
Re: Part-year tax return
Whoever recommended that is an idiot. I would insist on speaking to someone different if you speak with PwC next time.
#10
Re: Part-year tax return
Interestingly, while TurboTax doesn't support dual-status returns, TaxAct (which I use) does, but it involves preparing two separate returns and sounds a little confusing.
Dual-Status Taxpayer | Help Topics | TaxACT
I'd personally use a professional for any dual-status return though, especially since there could easily be other complications, like relocation expenses, how to deal with buying a car or other major purchase, and others.
Dual-Status Taxpayer | Help Topics | TaxACT
I'd personally use a professional for any dual-status return though, especially since there could easily be other complications, like relocation expenses, how to deal with buying a car or other major purchase, and others.
#11
Re: Part-year tax return
I arrived on the 1st August, spending less than 6 months in the USA in the last tax year. HR Block have insisted I am filing as non-resident ? Are they right ?
....because I have been told I need to pay the dear IRS 1000 bucks.....
Steve
....because I have been told I need to pay the dear IRS 1000 bucks.....
Steve
#12
Re: Part-year tax return
Have a look at this, including the exceptions at the bottom: Substantial Presence Test
Of course, if you have a green card, it's different.
Not sure if you owe $1000, without going into your tax records. You do need to make sure they are to account for all the tax you paid in the UK under the dual-tax treaty.
#13
Re: Part-year tax return
Probably.
Have a look at this, including the exceptions at the bottom: Substantial Presence Test
Of course, if you have a green card, it's different.
Have a look at this, including the exceptions at the bottom: Substantial Presence Test
Of course, if you have a green card, it's different.
Thing is, I haven't been asked about any income previous to arriving in the USA.
Steve
#14
Re: Part-year tax return
Actually, I could be wrong on that detail. As I married a US citizen, I was able to make the election to do a joint return as a full-year resident.