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Blurryfont
Jan 27, 2012, 08:22 AM
Hello:

I am USC and got married in December 2010. My wife joined me last August. She has an apartment in India and paying mortgage of about $300/ month. What do I need to fill out in my tax returns?

Thanks

ebaines
Jan 27, 2012, 08:59 AM
Please clarify for us:

1. What is "USC?" All I can think of is University of Southern California, but I doubt that's what you mean.

2. Your wife "joined you" in August - so is she now a resident alien of the US?

As for the mortgage on her property - it may be possible to deduct mortgage interest on your joint tax return, but practically speaking it's unlikely to work. If the bank that loaned her the money is not a US bank then she would be required to withhold part if her interest payment - this is to ensure the US government that the bank pays taxes on the money she is deducting from her taxes. It is highly unlikely that her mortgage lender is agreeable to this. For more details on this issue see:
https://www.askmehelpdesk.com/taxes/there-tax-deduction-home-loan-other-country-property-country-181648.html

Blurryfont
Jan 27, 2012, 09:06 AM
Thanks and sorry for being obscure. Clarification:

1. USC is United States Citizen
2. Yes, my wife is a resident alien.

Thanks again.

AtlantaTaxExpert
Jan 29, 2012, 12:01 AM
Everything ebaines says is accurate.

You CAN file jointly with your wife; she has to sign a statement that she wants to be copnsidered a resident alien for all of 2011, and she must declare ALL world-wide income.

Further, as a practical matter, your JOINT standard deduction is $11,600. The mortgage interest on the apartment in India amounts to about $3,600 for the entire year. That means you have to come up with at $8,000 more to itemize; not likely.

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