Zez

We're in our first year here but will be doing out taxes ourselves. Don't worry, we are both tax accounts so know what we are looking at and it means hubby has contacts who can help if needed. Does anyone know of any software that can cope with dual status or with foreign rental properties and filing the first year election to be resident alien. Don't fancy doing it the paper route and not sure if something like turbo tax would be relevant for first year stuff.

Thanks

RICH

If you know enough to be able to tell if turbo tax is missing something, I would give it ago. At least it will do the basics, and save them for next year. I don't know, but I suspect there is a way to append any obscure info you may need in your specific case.

Steve_

I don't know of anything that can do dual-status returns.

If you're stuck, some of the older versions of IRS publication 519 have examples of how to do it, don't know why they took that bit out. This 2008 edition has an example: http://www.docstoc.com/docs/22285899...010---Rev-2008

Making the first year choice is simple, you just file a 1040 and attach a letter saying you (and your spouse if filing jointly) want to be treated as resident for the whole year and you (both) sign it.

Zez

We're assuming given our simple facts (PAYE in the UK, no investments or anything, me not working) then the first year election will most likely give the best result as it would enable us to file jointly and claim the kids as dependents. Does this sound sensible or as we kissing a massive trick, in which case we should most likely pay someone!!!

Steve_

Well if you moved to the US in 2013 and had PAYE done, then you've paid tax on those earnings in the UK and you can't recover that. If you make a first year election to be resident, then US tax applies to your earnings before you moved to the US, which is why dual-status returns exist.

From the sounds of it you should file dual-status.

Just had a look at the non-discrimination clause in the UK US tax treaty and it is quite narrow, plus the example used by the IRS is for someone from the UK, so yes, dual-status seems like the way to go.

Zez

Sorry, yes, dual status but with the first year election to be treated as resident alien from the day we arrived rather than simply from when we meet the substantial presence test. Ie non resident til sept 6, resident alien from 7 sept

Zez

Sorry, I thought the FYE makes you resident from the day you arrived, not from the start if the tax year, hence still dual status. Am i right?

Thank you

monfed

I tried TurboTax and it told me to consult a tax professional... (I'm a new resident alien who arrived in 2013 via CR1 with US wife... I wanted to be treated as a whole year resident alien/US citizen in order to file married + jointly...)

Zez

Won't buy that then! Thanks x

hungryhorace

I thought the stipulation that your WW income is only declarable IF you are filing married joint. If you file single or married filing separately then you can just declare your income since you entered the United States that FY to become resident.

hungryhorace

I wonder if you would be better filing married but separate? Myself and my wife were; to a considerable amount.

JAJ

Worldwide income has to be declared either way. The difference is that if you want to file married/joint, you need to declare yourself as resident for the entire year and pay declare worldwide income for that entire year.

If you want to file as dual status, where worldwide income is only declared after becoming U.S. resident (only U.S. source income is taxable before then) then you need to use another filing status. For example, married/separate.

Steve_

That's what a dual-status return is, i.e. you file a non-resident return for the first part of the year (if you had any US-source income) and a pro-rated resident return for the second part of the year.

You just write "dual-status" across the top and state when you became resident, but you pro-rate things in it, which is why I suggest looking at the example in that old version of publication 519.

hungryhorace

Worldwide income doesn't need to he declared either way. It only needs to be declared if filling married jointly. Which you go into confirm in the paragraph below. So in fact we're in agreement.

Steve_

Worldwide income has to be declared from the point of becoming resident for tax purposes. Prior to that it's only US-source income that has to be declared.

Filing jointly, etc. is irrelevant. His point was you can't file dual-status jointly.