Taxes/First year choice etc

[LeeFisher3]

I guess I'm not the only one who can't sleep.

 

I guess I was wrong about the dual-status/substantial presence part. I took it to mean that you were only dual-status if you obtained the green card during that calender year,thus changing from non-resident to resident.

 

Any thoughts on the income part?

Sleep, what's that?

 

The difference in definition between the IRS and USCIS is a fun thing. Now if the spouse has a green card before 12/31 the entire first year choice doesn't apply and she is a resident for the entire year.

 

So forget the extension, just write a letter and mail it with your taxes.

 

Income is income, once you decide to file jointly you need to include all of here world wide income on the return.

 

My recommendation is to explain the tax rules to her, especially the part about paying taxes on income. Then ask if she has any W-2's for her work in China. Then ask if she remembers making any money in China this year so you can report it an pay taxes on it. Then enter $0.00 for her income as I am positive she was in ESL classes all year and what with the economy and all in China there weren't a lot of jobs around to be had.

 

When filing jointly only your joint income must meet the standard, not individual income. You can list her occupation as Student, Homemaker, Housewife, or in Triggs case as "Chinese woman who likes to spend money."

Edited December 21, 2007 by LeeFisher3 (see edit history)

[IllinoisDave]

I guess I'm not the only one who can't sleep.

 

I guess I was wrong about the dual-status/substantial presence part. I took it to mean that you were only dual-status if you obtained the green card during that calender year,thus changing from non-resident to resident.

 

Any thoughts on the income part?

Sleep, what's that?

 

The difference in definition between the IRS and USCIS is a fun thing. Now if the spouse has a green card before 12/31 the entire first year choice doesn't apply and she is a resident for the entire year.

 

So forget the extension, just write a letter and mail it with your taxes.

 

Income is income, once you decide to file jointly you need to include all of here world wide income on the return.

 

My recommendation is to explain the tax rules to her, especially the part about paying taxes on income. Then ask if she has any W-2's for her work in China. Then ask if she remembers making any money in China this year so you can report it an pay taxes on it. Then enter $0.00 for her income as I am positive she was in ESL classes all year and what with the economy and all in China there weren't a lot of jobs around to be had.

 

When filing jointly only your joint income must meet the standard, not individual income. You can list her occupation as Student, Homemaker, Housewife, or in Triggs case as "Chinese woman who likes to spend money."

 

I'm with ya.

[MikeandRong]

Thanks Lee and Randy for the countless hours you put into this (for our benifit too, as yours didn't even come into play because you are beyond this stage).

 

Thanks Dave for starting this thread, as it cleared up any potential pitfalls and questions for us, and many others too.

 

Merry Christmas guys.

 

[hankster]

Thanks, Lee and Randy, for the invaluable info.

 

This oughta be pinned.

 

Glad you started this, Dave.

 

[LeeFisher3]

Thanks, Lee and Randy, for the invaluable info.

 

This oughta be pinned.

 

Glad you started this, Dave.

 

Don't know that we can pin this one since yours from last year is pinned. I modified the other post in your thread to show the clarification.