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Can my wife claim Personal Exemption for her spouse also, if she is filing as Married separately. Her spouse is non resident Alien and She is filing for the first time after obtaining her residency for last 3 months ( October to December) in the tax year. Can she claim full personal exemption amount of 3400 or it will be prorated to the period of her residency?
When did you wife enter the U.S. Which visa does she have?
Dear Mukta,Quote:
Originally Posted by MukatA
The wife entered USA first time in year 2008 on her immigrant visa ( Green card through our daughter who is a USC) on 1st November 2008 and so she is required to file as RESIDENT ALIEN for part of the year i.e. for period 1st November to 31st December 2008. During this reporting period, she had foreign self employed income of $6000 which she received in December 2008 for the work done in year 2008 by her. She is reporting this income of 6000 on 2555 and on 1040 schedule C and would like to pay SS tax on $ 6000 in order to earn 4 Credits for year 2008. She also had interst /dividend income of $2500 on her foreign portfolio investment, which she received on 31st December 2008 . She has no other US source or Foreign income for the period of reporting. She has established bonafide residence abroad with me for over 15 years and since she is a citizen of India , so she qualifies for FEI Exclusion. So her Self employed income of 6000 will be fully exempt although SST tax is payable on that. Whereas her other income of 2500 will be subject to regular tax because she cannot claim standard deduction and as I understand she can only claim personal exemption(s). My status all along and still continues to be a Non resident Alien, but I am planning to get my Green card this year. Have we got is right?
Hopefully the above gives you a clear picture to make your advice... Thanks
Ashak:
Your wife has two choices:
Choice 1: Your wife will file nonresident tax return and report the income earned in the U.S. after she entered the U.S.
Choice 2: Wait to file your 2008 tax return till she completes SPT in 2009. Then she can file joint return as residents. Both of you will declare your worldwide income for the year.
Sorry Mukta, to clarify your reply.Quote:
Originally Posted by MukatA
I forgot to tell you that on 1st November 2008 she entered USA as landed immigrant so on entry she became a resident alien . Hence, for year 2008, she has to file as Married separately for the period beginning 1st November, because her spouse is non resident alien.
My question is how many personal exemptions is she allowed to claim for 2008? i.e. 1 or 2 and can she claim full amount of personal exemption i.e. 3400 or it will be prorated to the 2 months i.e. 2/12 for 2008 in such a case where residency is not for full year but for only a part of the year?
For 2009, I understand that once she has acquired the status of Resident alien because of obtaining her Green Card on 1st November 2008, she will continue to remain a resident alien thereafter for full year of 2009, as long as she retains her green card. Is this understanding correct? If this is correct then, what is the importance of SPT, as mentioned in your reply ? Kindly clarify. Thanks
Sorry ashak:
Yes, in this case your choice 1 is file dual status tax return for 2008. You will get your own exemption deduction and itemized deductions.
Thanks for your reply. So I understand that in her case, she can probably claim 2 full exemptions (1 for her and 1 for her nonresident alien spouse) even though she is resident for only part year? Kindly confirm or otherwise.Quote:
Originally Posted by MukatA
Thanks again
If she is filing dual-status, she CAN claim her child's exemption as long as her total U.S.-sourced income is at least $7,000.
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