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catburrows · Dec 30, 2007, 10:57 AM

My husband and I arrived in the US in October 2007, me on a H1 and him on a H4. I plan to file single for 2007 to avoid the complications of tax already paid in the UK on earnings there (income was considerably greater there!)

However, I am wondering what is best to have withheld as we go into 2008. From my limited understanding of the system, it would be safe to use married, 2 allowances. I think this might even be witholding a little too much, but I need to find the balance between avoiding a large refund or large payment in April 2009.

Any help would be great

Thanks

kliem · Dec 30, 2007, 12:44 PM

If I could recall correctly (please double check), your husband may not be allowed to work under H-4b visa (I assume you're on H-1b). If this is correct, then it would be better of filing jointly. If you don't have mortgage to pay, putting 2 allowances will be sufficient. You may still get some tax refund -- not a lot. You might want to read Publication 519 -- US Tax Guide for Aliens. Hope you like it here. I used to work in UK for several years and got back from UK in 1998, and prior to that was in the late 70's and early 80's.

AtlantaTaxExpert · Dec 30, 2007, 11:50 PM

CatBurrows:

More than likely, filing jointly will be a better benefit for you because you can then claim the DOUBLE standard deduction of $10,700, plus both your own and your husband's exemption. You will have to declare your UK income, but the income taxes paid to the UK can be used to offset the U.S. taxes via the Foreign Tax Credit (Form 1116).

It IS possible filing as a non-resident alien is more advantageous. The only way to know for sure is to model them BOTH ways and compare the results. I can do this for you for a small fee. Contact me if you are interested.

Two exemptions on your W-4 should be enough for 2008 if your spouse does NOT work.

MukatA · Dec 31, 2007, 12:46 AM

If catburrows files as a non-resident for 2007, then her filing status for 2007 is Single (if her husband is also a non-resident). She will get only her own exemption and won't get exemption for her husband even if he did not have income is 2007.

catburrows · Dec 31, 2007, 12:58 PM

Thanks, I am happy with taxes I have had withheld for 2007 (i.e. since arrival in October)My question is about how I should best complete W4 for 2008.

MukatA · Jan 1, 2008, 12:29 AM

Now your W4 will be used for 2008 wages. It appears that you will file 2008 return as resident.
So if you only have one job and your spouse does not work, then claim 1 or 2 allowances. If your spouse also works, claim 1.

AtlantaTaxExpert · Jan 1, 2008, 09:28 AM

If the husband works, they BOTH should claim ZERO exemptions.