ScottMc

Hi All,

I know this is a year ahead for me but I thought it was a good time to ask since it may be fresh in people's minds.

Given our L1/2 visas I sem to recall that we will need to file as single ans not married and as such I want to make sure witholding is correct. Anybody confirm this?

Secondly what kind of stuff should I keep for tax purposes for trying to get refunds etc. I can also recall that someone said you may be able to recoup some stuff to do with relocation expenses etc.

Just a quick update. I managed to get a job within four weeks but you all were defintely right in how difficult it was. I applied for 25-30 and got two interviews. Thankfully the job I've got pays well, decent benefits and seem like a good bunch of people.

Got my drivers sorted so I think the only thing now is getting a car and insurance..and then starting on the GC process...

Thanks for all the help

Scott

hcj1440

1) You can file as married filing jointly if you are both considered resident aliens.

From p.25 of the IRS publication 519, US Tax Guide for Aliens:
http://www.irs.gov/pub/irs-pdf/p519.pdf

"Resident aliens can use the same filing statuses available to U.S. citizens. See your form instructions or Publication 501 for more information on filing status.

"Married filing jointly. Generally, you can file as married filing jointly only if both you and your spouse were resident aliens for the entire tax year, or if you make one of the choices discussed in chapter 1 to treat your spouse as a resident alien for the entire tax year."

2) See publication 519 (linked above) for details about what a "resident alien" is. They have flow charts and things that help you figure it out.

3) As for deductions have a look at Schedule A to see what sorts of things you can deduct, and keep those receipts. If you do not have a mortgage or another significant write-off, you will generally be better off taking the standard deduction instead of itemizing deductions -- in which case, no receipts necessary. If your spouse will be "self-employed" there are many business deductions she can take, see Schedule C.

IIRC moving expenses are subject to certain limitations and are part of the itemized deductions. So again, unless all your deductions add up to more than the standard deduction, you will be better off just taking the standard deduction.

From p.27 of pub. 519:
"Resident Aliens: You can claim the same itemized deductions as U.S. citizens, using Schedule A of Form 1040. These deductions include certain medical and dental expenses, state and local income taxes, real estate taxes, interest you paid on a home mortgage, charitable contributions, casualty and theft losses, and miscellaneous deductions. If you do not itemize your deductions, you can claim the standard deduction for your particular filing status. For further information, see Form 1040 and instructions."

4) Re: withholding of taxes from your paycheck -- if both you and your wife are working, you might want to check off the box that says "married but withhold at higher single rate". Otherwise they withhold at an amount that assumes your wife is not working, and that means they will withhold too little and you will likely owe tax at the end of the year.

Bill_S

If you are married, you MUST file as married. You can use "married filing jointly" or "married filing separately", but you must not file as single. For most couples, married filing jointly results in the lowest total tax bill. In some states, and in some circumstances, however, married filing separately saves money. You can do the numbers both ways and decide which is better for you.

Bob

If your married, you've got to file as married, you can then choose to file jointly or seperately.

You can file one relocation cost a year, if for employment reasons, but it's more hassle than it's worth if it's not very much...better off getting the company to just soak the cost and not refund you, as that'll probably then go down as a bonus, and be taxed.

sboston2007

Deductions include rent (upto about 6k), i think you are also entitled to out of pocket costs of relocation if you have moved a certain distance to work, such as your airfare from the UK, shipping costs for your stuff etc. You can claim health & medical bills but only if they are above about 7% of you annual income. I have even seen people claim magazine subs and dry cleaning bills as work related expenses. All things considered you may be better off with the standard deduction at the end of year, your accountant/tax software will decide this. Your best bet for now is to get a shoe box and keep every receipt for everything and sort it out at the end of the year, or if you have time to try a few different things, get some tax software, i think turbotax have a free online demo.

Vicky88

Moving expenses that can be deducted would the cost of transportation and storage of household goods and personal effects and travel from your old home to your new home. You can not deduct any cost of temporary accommodation beyond I believe it is the first night at your new location, nor can you deduct the cost for any pre-move reccie. Relocation costs can only be deducted if you have changed jobs and your new job is more than I think it is 50 miles from your previous job. You must also take into consideration distance from your previous residence to your previous job. There are two rules you have to use to qualify, the Distance Test and Time Test.

Moving costs are in addition to the standard deduction. They are deducted on line 26 and actually reduce your Adjusted Gross Income (AGI).

Bob

the rent one is specific to a few states, most don't have it, and it's $3K in MA.