Need help with my husband's tax problem

[helen20092001]

Hello Guys,

My husband filed I-130 for me last month and i just received P3.

My husband has been a teacher in China for the last 5 years and in the last couple years, he didnt file his tax, his income was fae less than the poverty line, we married last year and oue baby was born not long after that. here is the questions.

1. how should he do to file the tax while he stays in China now ? how can he prove his income in China? how much would the penalty for not paying his taxes in the last two years(his ex filed it for him before that)?

2.Since he doesn't make enough money, he can't be the only sponsor of me, he will have to get a co-sponsor, right?

3.Do we need to prepare all the documents listed on P3 then send them altogether to the America Embassy GUZ ?

Thx.

[Yuanyang]

I'm guessing here: He needs to file the back taxes for the previous years. He may even have to pay a penalty.

 

 

Note: This is one of the most common issues that I've seen on CFL regarding taxes. That is the USC's income is so low that no taxes will be collected so they do not file. ALWAYS file your taxes, even if you're certain you don't have to pay!

Edited January 8, 2013 by Yuanyang (see edit history)

[helen20092001]

I'm guessing here: He needs to file the back taxes for the previous years. He may even have to pay a penalty.

 

 

Note: This is one of the most common issues that I've seen on CFL regarding taxes. That is the USC's income is so low that no taxes will be collected so they do not file. ALWAYS file your taxes, even if you're certain you don't have to pay!

Thx for your reply.

 

We are aware of that we just don't know how to do it. It gets tough here.

[Randy W]

If your total income is low enough that you don't pay taxes even with no deductions or exclusions, you don't HAVE to file by the IRS. This is typically the case for an English teacher in China.

 

But the visa officers at Guangzhou will usually look for income tax returns anyway. Simply fill them out, and mail them in - and keep a copy for the goons at GUZ. I'm not even convinced that mailing them in is necessary, but, what the heck!

 

Use Form 4852 Substitute for Form W-2 to report your Chinese wages.

 

If you owe $0 tax, the interest and penalties on that amount come to . . . (drum roll, please) . . . $0, with no late filing fee, since you weren't required to file in the first place.

 

If the Chinese income is above a taxable amount, you can exclude that income using Form 2555. The catch there is that they MIGHT deny the exclusion, since you didn't request it during the filing season. Don't worry - just fill out the returns WITH the exclusion and mail them in.

 

Your problem is not with the IRS - it's with the GUZ Visa officer. but it can be solved with a few pieces of paper and a little ink.

 

Yes, you'll most likely need a co-sponsor, unless he has a job lined up in the states.

 

Your documents are turned in on the document intake day, listed on your interview notice.

Edited January 8, 2013 by Randy W (see edit history)

[dnoblett]

If did not owe tax, there will be no penalty when filing prior year's returns.

 

Just because US Citizens may be exempt from paying US Income tax on foreign income does not exempt them from filing returns.

 

Can download prior year's forms here: http://www.irs.gov/Forms-&-Pubs/Prior-Year-Forms

 

Another bigger concern is did he maintain US Domicile? This is a requirement of the affidavit of support.

[warpedbored]

I presume your husband is doing a DCF (Direct Consular Filing). It is the fastest of all. These guys just gave you some good advice. I just want to welcome you to CFL.

Carl

[helen20092001]

Thanks for your help. Still confused what taxes forms to I need if you know.. Can anyone tell me or give me a short list. I'm still preplexed on this . Wow thanks guys and gals...

[credzba]

If did not owe tax, there will be no penalty when filing prior year's returns.

 

Just because US Citizens may be exempt from paying US Income tax on foreign income does not exempt them from filing returns.

 

Can download prior year's forms here: http://www.irs.gov/Forms-&-Pubs/Prior-Year-Forms

 

Another bigger concern is did he maintain US Domicile? This is a requirement of the affidavit of support.

Go to this website:

http://apps.irs.gov/app/picklist/list/priorFormPublication.html

 

you will see a place to enter labeled "Find", in the box next to Find enter: Form 1040-ez and press enter.

Then the page will update, and you will see all the form 1040-ez by year.

 

Your hubby needs to download the years he needs, and send them in.

 

I said 1040-ez presuming he has no income, you can of course do other forms as needed.

[helen20092001]

If did not owe tax, there will be no penalty when filing prior year's returns.

 

Just because US Citizens may be exempt from paying US Income tax on foreign income does not exempt them from filing returns.

 

Can download prior year's forms here: http://www.irs.gov/Forms-&-Pubs/Prior-Year-Forms

 

Another bigger concern is did he maintain US Domicile? This is a requirement of the affidavit of support.

Thx for your reply. He doesn't have any property in the US, when he went back for a vist he just stayed with his family, so what does it mean to our petition? will that affect it?

[helen20092001]

If your total income is low enough that you don't pay taxes even with no deductions or exclusions, you don't HAVE to file by the IRS. This is typically the case for an English teacher in China.

 

But the visa officers at Guangzhou will usually look for income tax returns anyway. Simply fill them out, and mail them in - and keep a copy for the goons at GUZ. I'm not even convinced that mailing them in is necessary, but, what the heck!

 

Use Form 4852 Substitute for Form W-2 to report your Chinese wages.

 

If you owe $0 tax, the interest and penalties on that amount come to . . . (drum roll, please) . . . $0, with no late filing fee, since you weren't required to file in the first place.

 

If the Chinese income is above a taxable amount, you can exclude that income using Form 2555. The catch there is that they MIGHT deny the exclusion, since you didn't request it during the filing season. Don't worry - just fill out the returns WITH the exclusion and mail them in.

 

Your problem is not with the IRS - it's with the GUZ Visa officer. but it can be solved with a few pieces of paper and a little ink.

 

Yes, you'll most likely need a co-sponsor, unless he has a job lined up in the states.

 

Your documents are turned in on the document intake day, listed on your interview notice.

I am very grateful for your long reply. We are confused by the taxable amount. From what amount and above should he pay taxes? Do you have any link to show us pls? we are getting so frustrated as it seems very hard to tackle the tax problem.

[dnoblett]

 

If did not owe tax, there will be no penalty when filing prior year's returns.

 

Just because US Citizens may be exempt from paying US Income tax on foreign income does not exempt them from filing returns.

 

Can download prior year's forms here: http://www.irs.gov/Forms-&-Pubs/Prior-Year-Forms

 

Another bigger concern is did he maintain US Domicile? This is a requirement of the affidavit of support.

Thx for your reply. He doesn't have any property in the US, when he went back for a vist he just stayed with his family, so what does it mean to our petition? will that affect it?

 

 

He will ned to show maintained domicile.

Can be as simple as maintained US Bank accounts, Drivers license, receiving mail at a US address, working for a US based company which will continue employment once moved back to the states..

More: http://candleforlove.com/forums/index.php?/tags/forums/Domicile/

[Randy W]

 

If your total income is low enough that you don't pay taxes even with no deductions or exclusions, you don't HAVE to file by the IRS. This is typically the case for an English teacher in China.

 

But the visa officers at Guangzhou will usually look for income tax returns anyway. Simply fill them out, and mail them in - and keep a copy for the goons at GUZ. I'm not even convinced that mailing them in is necessary, but, what the heck!

 

Use Form 4852 Substitute for Form W-2 to report your Chinese wages.

 

If you owe $0 tax, the interest and penalties on that amount come to . . . (drum roll, please) . . . $0, with no late filing fee, since you weren't required to file in the first place.

 

If the Chinese income is above a taxable amount, you can exclude that income using Form 2555. The catch there is that they MIGHT deny the exclusion, since you didn't request it during the filing season. Don't worry - just fill out the returns WITH the exclusion and mail them in.

 

Your problem is not with the IRS - it's with the GUZ Visa officer. but it can be solved with a few pieces of paper and a little ink.

 

Yes, you'll most likely need a co-sponsor, unless he has a job lined up in the states.

 

Your documents are turned in on the document intake day, listed on your interview notice.

I am very grateful for your long reply. We are confused by the taxable amount. From what amount and above should he pay taxes? Do you have any link to show us pls? we are getting so frustrated as it seems very hard to tackle the tax problem.

 

 

Your husband will most likely know how to fill out a tax return. The forms and instructions are found at the link provided by credzba - http://apps.irs.gov/app/picklist/list/priorFormPublication.html

 

If not, you may wish to hire a tax accountant or use tax preparation software. Specific help is beyond what we can do here.

[credzba]

Your husband will most likely know how to fill out a tax return. The forms and instructions are found at the link provided by credzba - http://apps.irs.gov/app/picklist/list/priorFormPublication.html

 

If not, you may wish to hire a tax accountant or use tax preparation software. Specific help is beyond what we can do here.

Taxes are always frustrating, for everyone.

Here is what I would do (if it was me).

 

Sign on to a online tax web site like www.turbotax.com and do your taxes for last year. Most of these online sites will only do the current year taxes, but it will walk you through step by step, and automatically pick all the forms for you.

 

Then, when you finish, you have 2 things:

1) your 2012 taxes done.

2) a good example of what you need for 2011 and 2010

 

Print out your 2012 tax forms from the online service.

Look at the form numbers, and go download those same forms for 2011 and 2010 from the site I gave you.

Use the instructions for the forms, and the 2012 filled out form as a guide to fill out 2010 and 2011.

 

Make 2 copies of all your forms for your records.

Mail the original filled out forms to IRS.

 

Send 1 of the copies you made in with your visa application.

Keep the other copy in your files in case you need it in the future.

 

p.s. you can do more than 3 years, there is a benefit to filing even when you don't owe. In America the government can only go back and ask you about previous years taxes for 5 (I think its 5) years from the date you file. If you never file, they can review your back taxes anytime they want.

Probably doesn't seem a big deal to you, since you don't owe anything, but I am always happy to know the government CAN'T bother me.

[helen20092001]

 

Your husband will most likely know how to fill out a tax return. The forms and instructions are found at the link provided by credzba - http://apps.irs.gov/app/picklist/list/priorFormPublication.html

 

If not, you may wish to hire a tax accountant or use tax preparation software. Specific help is beyond what we can do here.

Taxes are always frustrating, for everyone.

Here is what I would do (if it was me).

 

Sign on to a online tax web site like www.turbotax.com and do your taxes for last year. Most of these online sites will only do the current year taxes, but it will walk you through step by step, and automatically pick all the forms for you.

 

Then, when you finish, you have 2 things:

1) your 2012 taxes done.

2) a good example of what you need for 2011 and 2010

 

Print out your 2012 tax forms from the online service.

Look at the form numbers, and go download those same forms for 2011 and 2010 from the site I gave you.

Use the instructions for the forms, and the 2012 filled out form as a guide to fill out 2010 and 2011.

 

Make 2 copies of all your forms for your records.

Mail the original filled out forms to IRS.

 

Send 1 of the copies you made in with your visa application.

Keep the other copy in your files in case you need it in the future.

 

p.s. you can do more than 3 years, there is a benefit to filing even when you don't owe. In America the government can only go back and ask you about previous years taxes for 5 (I think its 5) years from the date you file. If you never file, they can review your back taxes anytime they want.

Probably doesn't seem a big deal to you, since you don't owe anything, but I am always happy to know the government CAN'T bother me.

Thank you for the advice, it is very smart. I will let my husband know and see if we can do it. Thx again!

[MarineClimateLover]

I was in the same situation just a few months ago when I DCF filed my wifes I-130 in Beijing. I had been living in China for years without filing taxes because I wasn't aware that I needed to. If your husband hasn't had an income of approximately $90,000 for any of the years that he hasn't filed then he can probably file without penalty.

 

In the end I had an accountant here in Beijing file the taxes for me at a cost of approximately $1,000 (a bit more than $300 per year). Since the firm I used charged by the year I only had them file for the three years I needed to satisfy the requirements of the petition. The forms required can be downloaded from the IRS government site but good luck figuring out which ones are needed. I could give you a list from the copies of my tax returns but, honestly, my advice would be to just have an accountant handle it for you.

 

I'm not sure where you're located but the Beijing US embassy site has this list of services: http://photos.state.gov/libraries/china/197340/PDF/ChinaTaxPreparers.pdf