Taxes - Resident Alien
Jan 23rd 2013, 1:21 am
#1
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Joined: Jan 2004
Location: Jacksonville, FL
Posts: 16
Taxes - Resident Alien
Hello,
My wife's parents were petitioned and approved to come to the USA and now have a green card. They have been in the USA since Oct 2012. Neither has been able to find employment yet.
I was reading some information on taxes and had some questions.
1. Do they need to file a US tax return even though they have not earned any income in the US, but have earned income from the Philippines for 2012?
2. The tax law states you can claim them on your taxes if you provide more than half of their living expenses. They earned in the Philippines from Jan-Oct 2012 and came here. When they arrived, they had no income and we have been providing. Does their prior income in another country count or only US earnings when calculating the "more than half" ?
They received their green cards in Oct 2011, stayed 2 months, and then came back Oct 2012.
Thank you.
My wife's parents were petitioned and approved to come to the USA and now have a green card. They have been in the USA since Oct 2012. Neither has been able to find employment yet.
I was reading some information on taxes and had some questions.
1. Do they need to file a US tax return even though they have not earned any income in the US, but have earned income from the Philippines for 2012?
2. The tax law states you can claim them on your taxes if you provide more than half of their living expenses. They earned in the Philippines from Jan-Oct 2012 and came here. When they arrived, they had no income and we have been providing. Does their prior income in another country count or only US earnings when calculating the "more than half" ?
They received their green cards in Oct 2011, stayed 2 months, and then came back Oct 2012.
Thank you.
Jan 23rd 2013, 1:55 am
#2
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Joined: Oct 2010
Location: Boston
Posts: 707
Re: Taxes - Resident Alien
If im wrong someone will clear that up when they get here, but the above is my understanding of how it works.
Jan 23rd 2013, 2:10 am
#3
BE Site Lead
Joined: Aug 2004
Location: MA, USA
Posts: 92,170
Re: Taxes - Resident Alien
But only if they have made the threshold, but this would be world wide income...and the threshold is what, a few grand? I've love to find a country where a family can live on a few grand....
Jan 23rd 2013, 2:43 am
#4
BE Irregular
Joined: Jan 2004
Location: Tampa Bay Florida
Posts: 4,849
Re: Taxes - Resident Alien
It is often a cause for concern. The misunderstanding is that "filing a tax return" equates to "owing taxes"
PR's and citizens must file, it does not follow that they owe anything.
One assumes visa holders (h1b etc) must also file if they earn US pay?
PR's and citizens must file, it does not follow that they owe anything.
One assumes visa holders (h1b etc) must also file if they earn US pay?
Jan 23rd 2013, 2:48 am
#5
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Joined: Jan 2004
Location: Jacksonville, FL
Posts: 16
Re: Taxes - Resident Alien
So if they must file, does that mean they cannot be claimed on someone else's return?
Jan 23rd 2013, 8:03 am
#6
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Posts: 902
Re: Taxes - Resident Alien
They need to file tax returns and FBARs from 2011 onwards but only if they meet the relevant thresholds.
Jan 23rd 2013, 5:25 pm
#8
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Joined: Jul 2010
Location: Calgary, Alberta
Posts: 8,928
Re: Taxes - Resident Alien
So not a head of household situation.
Maybe, depends on how much they earned. They may need to file a non-resident return there as well. (In fact they will for sure because of the way the tax system works there).
They are taxed on worldwide income in the US from the date they became LPRs. To avoid dual taxation with the Philippines they must file a 1116 in the US to claim the foreign tax credit.
A person who becomes an LPR during the tax year files dual-status. Which essentially means a pro-rated 1040NR for the first part of the year (which may not be necessary if there was no US source income) and a pro-rated 1040 for the second part of the year. Read IRS publication 519. (Do not trust H&R Block or Turbotax).
What your real problem is here is that the Philippines is one of the few countries in the world (the US being the main one) that taxes people on the basis of their citizenship, not just their domicile, so they still need to file there as well as in the US.
It's not an uncommon situation given the huge number of Filipinos in the US, but I'd suggest you consult a specialist accountant familiar with their tax system.
1. Do they need to file a US tax return even though they have not earned any income in the US, but have earned income from the Philippines for 2012?
2. The tax law states you can claim them on your taxes if you provide more than half of their living expenses. They earned in the Philippines from Jan-Oct 2012 and came here. When they arrived, they had no income and we have been providing. Does their prior income in another country count or only US earnings when calculating the "more than half" ?
They received their green cards in Oct 2011, stayed 2 months, and then came back Oct 2012.
What your real problem is here is that the Philippines is one of the few countries in the world (the US being the main one) that taxes people on the basis of their citizenship, not just their domicile, so they still need to file there as well as in the US.
It's not an uncommon situation given the huge number of Filipinos in the US, but I'd suggest you consult a specialist accountant familiar with their tax system.
Jan 23rd 2013, 5:32 pm
#9
He/him
Joined: Dec 2006
Location: WA
Posts: 18,824
Re: Taxes - Resident Alien
Hello,
My wife's parents were petitioned and approved to come to the USA and now have a green card. They have been in the USA since Oct 2012. Neither has been able to find employment yet.
I was reading some information on taxes and had some questions.
1. Do they need to file a US tax return even though they have not earned any income in the US, but have earned income from the Philippines for 2012?
2. The tax law states you can claim them on your taxes if you provide more than half of their living expenses. They earned in the Philippines from Jan-Oct 2012 and came here. When they arrived, they had no income and we have been providing. Does their prior income in another country count or only US earnings when calculating the "more than half" ?
They received their green cards in Oct 2011, stayed 2 months, and then came back Oct 2012.
Thank you.
My wife's parents were petitioned and approved to come to the USA and now have a green card. They have been in the USA since Oct 2012. Neither has been able to find employment yet.
I was reading some information on taxes and had some questions.
1. Do they need to file a US tax return even though they have not earned any income in the US, but have earned income from the Philippines for 2012?
2. The tax law states you can claim them on your taxes if you provide more than half of their living expenses. They earned in the Philippines from Jan-Oct 2012 and came here. When they arrived, they had no income and we have been providing. Does their prior income in another country count or only US earnings when calculating the "more than half" ?
They received their green cards in Oct 2011, stayed 2 months, and then came back Oct 2012.
Thank you.
http://www.uwkc.org/ways-to-voluntee...-tax-services/
http://www.uwkc.org/ways-to-voluntee.../tax-site.html
Jan 23rd 2013, 5:35 pm
#10
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Joined: Dec 2006
Location: WA
Posts: 18,824
Re: Taxes - Resident Alien
This is from last year, but I think it is your neck of the woods.
http://jacksonville.com/opinion/blog...seven-counties
Hang on.....here you go....2013, Duval County, kick off was yesterday.
http://www.realsensejax.org/filing-o.../#.UQAuvH2lhO0
http://jacksonville.com/opinion/blog...seven-counties
Hang on.....here you go....2013, Duval County, kick off was yesterday.
http://www.realsensejax.org/filing-o.../#.UQAuvH2lhO0
Last edited by kimilseung; Jan 23rd 2013 at 5:41 pm.
Jan 24th 2013, 4:29 am
#11
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Posts: 478
Re: Taxes - Resident Alien
2. they are NOT your dependents as the "support" rule applies to the whole year, and they supported themselves for most of it.
Someone above mentioned free tax services - most (e.g. the VITA program) are not able to do complicated tax returns such as dual status returns, they are beyond the scope of the assistance program, so you are stuck with doing their own or paying someone. They may not have to file if their income while in the US (October onwards) from WORLDWIDE sources (e.g. might include interest on a bank account in the Phillipines, rent from a house in the Phillipines etc.) is less than $3800; if they have income more than that they definitely need to address the issue, although they may still not need to file.
If you are confident with numerical/tax issues I would read this IRS page (and the links therein), but it really might be best to hire someone if you're not sure.
http://www.irs.gov/Individuals/Inter...-Status-Aliens
Someone above mentioned free tax services - most (e.g. the VITA program) are not able to do complicated tax returns such as dual status returns, they are beyond the scope of the assistance program, so you are stuck with doing their own or paying someone. They may not have to file if their income while in the US (October onwards) from WORLDWIDE sources (e.g. might include interest on a bank account in the Phillipines, rent from a house in the Phillipines etc.) is less than $3800; if they have income more than that they definitely need to address the issue, although they may still not need to file.
If you are confident with numerical/tax issues I would read this IRS page (and the links therein), but it really might be best to hire someone if you're not sure.
http://www.irs.gov/Individuals/Inter...-Status-Aliens
