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Dmodegirly · Dec 27, 2007, 02:20 PM

I was recently married (Oct. 21, 2007) to a UK resident. We filed our immigration paperwork with the INS at the end of November to change my husband's status from "visitor" to "perm. resident" in the US. We got the receipts from the INS and have received his appt for fingerprinting.

My question is this: What should my filing status be for my 2007 tax year? Can I file married/joint if we haven't received his work permit to get his SSN by April 15, 2008? He has not worked since he came here in Sept. 2007, as he doesn't have his work permit yet so he has no US income to report.

I don't want to file incorrectly but technically, I'm not single anymore. Any advice would be really helpful!

Happy Holidays!

AtlantaTaxExpert · Dec 27, 2007, 04:56 PM

Once you are married, you became eligible to file jointly with your husband.

He will have to sign a statement saying he wants to be treated as a resident alien for all of 2007, and he will have to get a ITIN by filing Form W-7 with the tax return, but, other than that, you file jointly just like most other couples.

Congratulations on your marriage.

MukatA · Dec 28, 2007, 12:59 AM

Dmodegirly's filing status is not Single any more. She can file only as Married Filing Separately or Married Filing Jointly.
As Married filing Jointly, they must report world wide income for 2007 that is her husbands foreign income also. Then they can exclude foreign earned income up to $85,000 by filing Form 2555 and/or get credit for taxes paid in foreign country by filing Form 1116.

supera · Dec 28, 2007, 09:22 AM

Hi,

Can you please elaborate on the exclusion of foreign income less than $85,000? This year I have a foreign income of only $8000 (this was our sole income at that time while I was working there - From Aug 2006 till Jun 2007) in addition to the later US income (around $30,000).Me and my wife file jointly as resident aliens (we meet the US SPT based on 2005,2006,2007).

- Should I file Form 2555 for exclusion of foreign income or should I include foreign income and apply Form 1116.Which option would help to maximize the returns?

- Also,within the foreign income,it is possible to exclude house rent allowance,personal/conveyance allowance,car maintenance amounts.I got a fixed basic amount of salary + the above mentioned allowances each month and is documented in the paychecks

Thanks

MukatA · Dec 29, 2007, 12:19 AM

If you can exclude all of the Foreign Earned Income by filing Form 2555, then you don't file Form 1116 and don't know other deductions are needed. Foreign income deductions can't be used for your U.S. income.
You can always contact me for any clarification.

supera · Dec 29, 2007, 12:55 AM

Thanks MukutA
But based on my above info
I want to know if at all I am
Eligible for the exclusion.

Also any inputs on the allowances within the foreign salary please.

MukatA · Dec 29, 2007, 01:39 AM

Allowances associated with the wages (if taxable) will be included in the total wages.
If you were resident of the foreign country when you earned the wages, yes you are elligible. Still you should download form 2555 and go through it.
Internal Revenue Service

AtlantaTaxExpert · Dec 29, 2007, 09:49 AM

Supera:

You need to RUN, not walk, to a tax professional with experience doing tax returns for foreign nationals like yourself.

I am available. You can contact me at [email protected].