how to file taxes ?

[jeepizoid]

hello everyone

i am puzzled now how to file my taxes . i am a us citizen just recently married in China , we filed our I-130 in August, have not heard anything back yet on this , i want to make sure i do my taxes correct to help our immigration and the next step, i plan to go back to china again during spring festival

 

 

thanks !!!

[dnoblett]

First thing to do is study topics tagged "Taxes" http://candleforlove.com/forums/tags/forums/Taxes/

 

There are two options,

 

• File married filing Jointly, Problem is foreign citizen does not have a SSN, so will need an ITIN which is added work to get.
• File married filing separately, you file your return and after arriving file an amended return and spouse files her return once having a SSN.

[jeepizoid]

We are each living on our own incomes currently, she owns property in china, she is planning to retire when we get the interview date, i also live in Arizona a community property state ,i am confused what am i going to need from her ? i have never worried about her assets

[Randy W]

We are each living on our own incomes currently, she owns property in china, she is planning to retire when we get the interview date, i also live in Arizona a community property state ,i am confused what am i going to need from her ? i have never worried about her assets

 

 

 

 

You may wish to talk to a CPA who is familiar with the Foreign Earned Income Exclusion (Form 2555). We obviously can't (and WON'T) be looking over your shoulder to see what you need to report.

 

1) If you file Married filing jointly, you will need to report her income on the Form 2555 - this doesn't actually EXCLUDE ANYTHING, but will allow you to REPORT and PAY TAXES on her income at a reduced rate, calculated on the Foreign Earned Income Worksheet in the 1040 instructions. Once you do this, then she will be brought into the IRS tax umbrella, and be required to report her income (and bank accounts over $10,000USD) every year.

 

2) If you elect to file Married filing separately, she will not need to file as long as she has never had or reported any U.S. based income.

 

So it's your choice here as to which works out better for your own situation. Again, DO NOT ask us to look over your shoulder or hold your hand here.

 

Assets are not taxed, although overseas bank accounts in the amount of $10,000 or greater must be reported by all U.S. taxpayers. Option 1 makes her a U.S. tax payer - Option 2 does not.

 

W-2's are generally NOT available from Chinese companies, but you need to report her income anyway on the Form 2555 IF you are filing jointly.

[jeepizoid]

well i spent the greater part of the day talking to tax professionals they had no information on how to file separately ,most of them tried to get me to file single,, and the best solution is filing jointly i was told this by my sons mother in law who is a CAA, she is sympathetic to our immigration and said this is the best way to go..so we are going to start working on the requirements for a w-7

[dnoblett]

Never file as single, that is bad advice, the consulate has denied visas over this.

[Randy W]

well i spent the greater part of the day talking to tax professionals they had no information on how to file separately ,most of them tried to get me to file single,, and the best solution is filing jointly i was told this by my sons mother in law who is a CAA, she is sympathetic to our immigration and said this is the best way to go..so we are going to start working on the requirements for a w-7

 

 

Somebody is pulling somebody's leg here - Married filing separately is box # 3 under Filing Status on the 1040. Depending on your wife's income, you may wish to explore that option. With this filing status, no SSN is needed for your wife if she is not required to file a separate return.

 

But yes, Married filing jointly is generally the best choice.

Edited January 26, 2015 by Randy W (see edit history)

[Doug]

I have always filed as single, while my wife is in China and she has no tax ID. (and I have done this twice) In the tax code it is clear that your treated as single until you have a tax ID for her. I did not know about the consulate refusing a visa over the way you file your taxes. But these two guys know way more about that than me. Because of IRS code I can buy and sell real estate as a single person and have, several times, as long as she had no tax number. If your concerned about the visa and want to file as single, then write a letter of explanation about that and quote the tax code, or copy from instructions, so they know your aware of this.

 

Now it is way more complicated to get the tax number for your spouse, than it used to be. Now she has to go to a US Consulate/embassy with her passport and a copy that they can certify or something. I forget, and too tired to look up now.

 

I will go back and file 1040X for the years, once my wife is here, like I did before, and get a little more of a refund. this time I did not want the real estate issues and it was a pain in the ass for this passport cert thing I felt.

 

Just my .02...

[Randy W]

I have always filed as single, while my wife is in China and she has no tax ID. (and I have done this twice) In the tax code it is clear that your treated as single until you have a tax ID for her. I did not know about the consulate refusing a visa over the way you file your taxes. But these two guys know way more about that than me. Because of IRS code I can buy and sell real estate as a single person and have, several times, as long as she had no tax number. If your concerned about the visa and want to file as single, then write a letter of explanation about that and quote the tax code, or copy from instructions, so they know your aware of this.

 

Now it is way more complicated to get the tax number for your spouse, than it used to be. Now she has to go to a US Consulate/embassy with her passport and a copy that they can certify or something. I forget, and too tired to look up now.

 

I will go back and file 1040X for the years, once my wife is here, like I did before, and get a little more of a refund. this time I did not want the real estate issues and it was a pain in the ass for this passport cert thing I felt.

 

Just my .02...

 

 

There are those here who would say that filing single when you are married is not allowed - that you are "lieing" to the IRS. I disagree - I think that as long as you pay your taxes, you're okay. There's no penalty or late fee when you overpay.

 

But there seems to be a policy with the consulate - that you don't tell the IRS one thing, and tell the consulate something else. This policy can affect those who have filed as single, or those who have failed to report income (even if no taxes were involved) - and even lead to a visa denial.

 

Married filing separately would seem to be the appropriate status when your spouse doesn't have a tax ID. She won't need a tax ID, nor will she need to file.

 

As far as the concept of being legally single as long as your wife doesn't have a tax ID, I would find that hard to accept as well. As far as the mechanics of doing that, as long as you are ALLOWED to do that, that's fine - I don't see any potential problems there.

 

But, by golly, Doug - you ARE married. Texas is a community property state. Your wife could throw a monkey wrench into that works, if she were so inclined - as far as your business associates are concerned. But, again, if they're NOT concerned - no problem.

 

Doug can you post that IRS code, or a link to it? Thanks

Edited January 26, 2015 by Randy W (see edit history)

[newacct]

As long as you are married as of the last day of the year, you CANNOT file as Single. Under any circumstances. You can only file as Married Filing Jointly or Married Filing Separately (or in rare cases for separated couples who have dependents, Head of Household). Never Single. It is fraud.

 

It does matter. The tax rates are different between filing statuses. Married Filing Separately has worse tax rates than Single for all people beyond $74k income. If you file as Single, where you would otherwise choose to file as Married Filing Separately, that means you are paying less taxes than you are supposed to. That is tax evasion.

[Doug]

I have almost answered this 2-3 times today, thinking I was all wet, but I finally found some words I was looking for and actually 2014 reads better than back in 2005 & 06. Pub 519 words are about the same in 05 as the latest in 13, but 1040 instructions are bit dif. I will just use 2014 for the sake of discussion, since it is the concern now.

 

I was wrong about claiming Single. I forgot I had my mother living with me in the past and claimed Head of Household. But Head of Household is an unmarried category.

 

In the 2014 1040 instructions, it says for head of household:

 

 

 

 

 

 

Line 4

Head of Household

This filing status is for unmarried indi-viduals who provide a home for certain other persons. You are considered un-married for this purpose if any of the following applies.

You are married to a nonresident alien at any time during the year and you do not choose to treat him or her as a resident alien.

 

Thus I am categorized as single (unmarried), on several money, tax, real estate, and insurance issues in the USA, since she has no ITIN either. But everyone knows I am married too, I never kept it a secret, and just explained and let them decide.

 

My wife knows of the shop I sold, and land I recently bought to build another shop, but I did not have to get her signatures and stuff, according to the title companies. Also once my wife and her daughter arrive I will submit this as a life event for medical insurance at work in mid year, even though we were married for 2+ yrs.

 

PS: Sorry guys, Head of Household was not what this thread was about. I simply forgot about it. Please excuse my exuberance, if you don't mind...

Edited January 27, 2015 by Doug (see edit history)

[Randy W]

I have almost answered this 2-3 times today, thinking I was all wet, but I finally found some words I was looking for and actually 2014 reads better than back in 2005 & 06. Pub 519 words are about the same in 05 as the latest in 13, but 1040 instructions are bit dif. I will just use 2014 for the sake of discussion, since it is the concern now.

 

I was wrong about claiming Single. I forgot I had my mother living with me in the past and claimed Head of Household. But Head of Household is an unmarried category.

 

In the 2014 1040 instructions, it says for head of household:

 

 

 

 

 

 

Line 4

Head of Household

This filing status is for unmarried indi-viduals who provide a home for certain other persons. You are considered un-married for this purpose if any of the following applies.

You are married to a nonresident alien at any time during the year and you do not choose to treat him or her as a resident alien.

 

Thus I am categorized as single (unmarried), on several money, tax, real estate, and insurance issues in the USA, since she has no ITIN either. But everyone knows I am married too, I never kept it a secret, and just explained and let them decide.

 

My wife knows of the shop I sold, and land I recently bought to build another shop, but I did not have to get her signatures and stuff, according to the title companies. Also once my wife and her daughter arrive I will submit this as a life event for medical insurance at work in mid year, even though we were married for 2+ yrs.

 

PS: Sorry guys, Head of Household was not what this thread was about. I simply forgot about it. Please excuse my exuberance, if you don't mind...

 

 

No problem, Doug. Thanks for the details there. It REALLY helps A LOT when these things get sorted out.

[dnoblett]

Gotta love the federal tax code, they can make it damn complicated. Why not a flat percent tax, or better yet, do away with income tax and run the gov on sales tax?

Well that's a discussion for another day.

[Doug]

 

I have almost answered this 2-3 times today, thinking I was all wet, but I finally found some words I was looking for and actually 2014 reads better than back in 2005 & 06. Pub 519 words are about the same in 05 as the latest in 13, but 1040 instructions are bit dif. I will just use 2014 for the sake of discussion, since it is the concern now.

 

I was wrong about claiming Single. I forgot I had my mother living with me in the past and claimed Head of Household. But Head of Household is an unmarried category.

 

In the 2014 1040 instructions, it says for head of household:

 

 

 

 

 

 

Line 4

Head of Household

This filing status is for unmarried indi-viduals who provide a home for certain other persons. You are considered un-married for this purpose if any of the following applies.

You are married to a nonresident alien at any time during the year and you do not choose to treat him or her as a resident alien.

 

Thus I am categorized as single (unmarried), on several money, tax, real estate, and insurance issues in the USA, since she has no ITIN either. But everyone knows I am married too, I never kept it a secret, and just explained and let them decide.

 

My wife knows of the shop I sold, and land I recently bought to build another shop, but I did not have to get her signatures and stuff, according to the title companies. Also once my wife and her daughter arrive I will submit this as a life event for medical insurance at work in mid year, even though we were married for 2+ yrs.

 

PS: Sorry guys, Head of Household was not what this thread was about. I simply forgot about it. Please excuse my exuberance, if you don't mind...

 

 

No problem, Doug. Thanks for the details there. It REALLY helps A LOT when these things get sorted out.

 

YES I AM MARRIED, wear the ring and admit it. I have told the IRS, and every where else, BUT for certain purposes you are treated as unmarried. I like this little loophole and I studied the heck out of it when I started it in 05, which has weaker words. Anyway, same with health insurance, and just try to do any banking, utilities, real estate, and etc. with her over there and no ITIN. This separation is all a crock as it is. That little loophole has helped with a number of things. And why Texas Title companies accept unmarried from the IRS, when it is a community property state, I don't know. I'm not worried about any law suits. Anyway, in this way it is not fraud or a stupid mistake. Sorry again I jumped in without looking it up. I should have kept quiet.

[Randy W]

Yes, there are some issues with joint ownership that need to be considered in some cases, such as what you're describing. Also consider that when one of two joint owners dies, the account can be tied up in probate court for a while (like I'm up against with my sister's estate at the moment - I'm having to pay her bills myself). When I first set up a stock brokerage account years ago, I was told that it was best to put it in ONE name only to prevent that if the OTHER person died. I'm also finding out that naming a beneficiary (ies) can keep it out of the probate court's clutches. Using statuses like Joint Tenants with Right of Survivorship can help, too. There are lots of things to consider.

 

Single is good where they let you do that. Your wife is the only one who could throw a monkey wrench into that works if she were so inclined - and I'm sure she's not.