[didi12]

Hello, I am a US citizen who got married in 2009 to a J1 Visa holder so that he can apply for a green card - he filed for this change of status in October 2009. We're still in the middle of the process now, and we have his green card interview in February 2010. I'm trying to file my taxes for this year... Although we're married now, he was a on a J1 Visa in all of 2009 and did not have any income in the US - (but he did get paid a research stipend, but since he was not a US citizen, a tax amount was taken out before he got his check for this reason.) He has some income in the Philippines, and pays taxes there. None of his income is generated here. How should I file? Thank you very much!

[MukatA]

Irrespective of visa status of your spouse and even your spouse has never been to the U.S. you can file joint return as residents. Both must report worldwide income. Your U.S. Tax Return: Filing Status for Married

Or you can file as married filing separately and your spouse files nonresident tax return with J1 visa.

[didi12]

Thank you very much for your reply! He has approximately US $80K annual income in the Philippines, I have about $120K here in the US - so I am guessing that filing as "married but filing separately" would be best for me (US citizen). I'll have him file the nonresident tax return - as he is still in nonresident status. Thank you so much again.

[MukatA]

You need to report Philippines income during Jan 2009 to Dec 2009. If you paid taxes in Philippines, you will complete Form 1116 Foreign Tax Credit or and Form 2555 Earned Income Exclusion. Your U.S. Tax Return: U.S. Citizen or Resident with Foreign Income

[didi12]

Hello, thank you again. I'm a bit confused - I do not have any income in the Philippines (the US citizen,) but he does (the US nonresident). So I never paid taxes in the Philippines...

[AtlantaTaxExpert]

Didi:

It does not matter. A joint return is TWO people filing a tax return as if they were ONE person, so all income and all deductions are merged and submitted on the single, joint tax return.

[didi12]

Thank you very much for your reply. In your opinion, AtlantaTaxExpert, do you feel I should just file separately? (married filing separately)? Thanks again

[didi12]

Thank you very much for your reply. In your opinion, AtlantaTaxExpert, do you feel I should just file separately? (married filing separately)? Thanks again

[AtlantaTaxExpert]

Didi:

It is impossible to tell without modeling the return BOTH ways using tax software, and factoring in either the Form 1116 or the Form 2555.

That kind of extensive modeling takes a bit of time, but the results will clearly show whether you should file jointly with or separately from your spouse.