Taxes

[Hobber]

Hi all,

Quick question regarding taxes. We are planning to get married December 29th. When I file my taxes in early 2012 do I claim single or married? If I need to file married, do I count her income in 2011 plus mine? She lived and worked in China in 2011. No income in the USA.

Thanks,

Matt

[2mike&jin]

Hi all,

 

Quick question regarding taxes. We are planning to get married December 29th. When I file my taxes in early 2012 do I claim single or married? If I need to file married, do I count her income in 2011 plus mine? She lived and worked in China in 2011. No income in the USA.

 

Thanks,

 

Matt

 

Generally, if married on the last day....married for the whole year. However, you can elect to treat her income as all subject to US taxes or not. You need to read updated Pub 17 for any changes. Since she paid taxes on income in China (if it broke threshold) that income won't be subject to US taxes, if you DON't elect to be treated as Taxpayer for all year - called the first year election. So, my suggestion, don't elect, don't report - married and separate, and see how it is to your advantage next year. BTW..to finally answer your question...You can't file single after 29 Dec 2011....YOU WILL BE MARRIED. The issue is are you including her income all year or not? and....are you filing married Joint or Married Separate. The later is the way to go.

[Randy W]

If, on the other hand, you file married filing jointly, that status applies for the entire year. So, legally speaking, her income in China is reported, but then excluded up to something in the neighborhood of $93,000, using Form 2555 - so you pay no tax on it anyway.

 

Read the Form 2555. If her income in China can be excluded, you will almost certainly be better off filing married filing jointly, even if you are both taxed on your worldwide income.

[Hobber]

If, on the other hand, you file married filing jointly, that status applies for the entire year. So, legally speaking, her income in China is reported, but then excluded up to something in the neighborhood of $93,000, using Form 2555 - so you pay no tax on it anyway.

 

Read the Form 2555. If her income in China can be excluded, you will almost certainly be better off filing married filing jointly, even if you are both taxed on your worldwide income.

 

 

Thanks all

[Zhou Zhou]

I filled jointly in 2009, the year we married. She was still in the PRC, but had left her job to care for her mother. I had no idea how low the taxes were on married folks until that year and also the new administration cut taxes too...and cotton prices were high, too. I done good!

[dnoblett]

Filing a joint return will net you a larger refund.

 

And as Randy indicated, foreign income can be exempted up to quite a large amount.

[Hobber]

Filing a joint return will net you a larger refund.

 

And as Randy indicated, foreign income can be exempted up to quite a large amount.

 

Excellent!!! Thanks all.

[pbatt]

Does a person need a tax id number for foreign spouse? or anything else? Also for her income what type of pay stub would be acceptable?

[Randy W]

Does a person need a tax id number for foreign spouse? or anything else? Also for her income what type of pay stub would be acceptable?

 

 

Without an SS# or ITIN, you would have to file as single, until you can apply for the ID and file an amended return. At least one member has done this.

 

If you can get the ID by Oct 15, you could file for an extension - this would avoid having to pay the higher singles rate.

 

I filed a Form 4852 Substitute for W-2 for my Chinese income.

[pbatt]

I am looking at the form W-7, to me is a confusing form, so which reason do I check for Liyuan to get her a number?

Thanks for any help.

Do I need to submit my 2011 tax form since I filed before I got married on march 1st this year?

[Beachey]

I am looking at the form W-7, to me is a confusing form, so which reason do I check for Liyuan to get her a number?

Thanks for any help.

Do I need to submit my 2011 tax form since I filed before I got married on march 1st this year?

 

e. Spouse of US Citizen/Resident Alien - add your name and SSN to the right of it.

[foobaz123]

When I called the IRS asking them about this they said I could apply for my wife's ITIN at the same time I filed for 2011. However, they also said that I couldn't apply until that time and that doing it that way would severely delay my refund. The entire process would have to be done offline by paper and such.

 

If you guys know a better way I'm all ears. I'm not so much worried about the refund as I am wanting the 2011 tax return with us as married for the interview, since it will definitely be way past January and probably nearly April before the interview.

 

On the other hand, since unless things go really badly she should be here soon after April, could I not just file for an extension and file things normally after that?

Edited December 5, 2011 by foobaz123 (see edit history)

[Randy W]

The Application for Automatic Extension calls for an "Estimate of total tax liability for 2011", which you can estimate as the amount due AFTER you get the ITIN. But I don't think you get a refund until you file the actual return.

 

You may want to file as early as possible, even if it means filing an amended return later in the year.

[foobaz123]

The Application for Automatic Extension calls for an "Estimate of total tax liability for 2011", which you can estimate as the amount due AFTER you get the ITIN. But I don't think you get a refund until you file the actual return.

 

You may want to file as early as possible, even if it means filing an amended return later in the year.

 

That would be fine as far as the refund goes. All I really want is to be able to show we filed taxes together this year, or that I haven't filed them at all. My concern with the latter is if they would take that as some kind of contra-evidence as opposed to just my not wanting to go through the hassle and delays applying for the ITIN will cause when she'll have a real SSN soon after getting here.

 

In short, aside from worrying about what GUZ will say there is no logical reason to file taxes now and take the delay and hassle of the ITIN process when instead I could file them soon after she gets here with the far simpler and faster her having the SSN will allow.

 

Also, any process that requires me to pay or possibly pay the single rate would be insane as it would end up being a very significant chunk of money that we can't afford with all the costs of getting her here..

Edited December 5, 2011 by foobaz123 (see edit history)

[Randy W]

The Application for Automatic Extension calls for an "Estimate of total tax liability for 2011", which you can estimate as the amount due AFTER you get the ITIN. But I don't think you get a refund until you file the actual return.

 

You may want to file as early as possible, even if it means filing an amended return later in the year.

 

That would be fine as far as the refund goes. All I really want is to be able to show we filed taxes together this year, or that I haven't filed them at all. My concern with the latter is if they would take that as some kind of contra-evidence as opposed to just my not wanting to go through the hassle and delays applying for the ITIN will cause when she'll have a real SSN soon after getting here.

 

In short, aside from worrying about what GUZ will say there is no logical reason to file taxes now and take the delay and hassle of the ITIN process when instead I could file them soon after she gets here with the far simpler and faster her having the SSN will allow.

 

Also, any process that requires me to pay or possibly pay the single rate would be insane as it would end up being a very significant chunk of money that we can't afford with all the costs of getting her here..

 

 

The IRS and GUZ are two different issues - you have choices with both. But GUZ CAN and has in some cases requested to see your present years tax return.

 

You could always have one filled out, ready to turn in, with "Applied for" in the SS# field, to show GUZ along with with your extension paperwork.

 

Perhaps someone can tell you how long the ITIN process takes - I'm not sure that it's really worth your while to wait for an SS# when you can file as early as February with an ITIN application.