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info_b3101 · Jan 9, 2011, 08:58 PM

Hi,

I have been on H1 Visa since 2006 and got married in Dec 2010. My spouse is not in US, he has a SSN though as he has worked here in US in 2007. Can I file the taxes as Married filing jointly? I guess then we have show his income in our home country?

Or should I file Married filing separately? Can I get exemptions on him?

Please help which status is better for tax benefits?

Thanks

AtlantaTaxExpert · Jan 10, 2011, 11:03 AM

You have a choice:

1) You can file Married Filing Separately and, since he will NOT file a U.S. tax return, claim HIS personal exemption. By filing separately, you do not have to report HIS income.

OR

2) You can file jointly with him, and he must sign a statement that he CHOOSES to be treated as a resident alien for all of 2010. You must report his foreign income, but it can be excluded using Form 2555 or you can claim the Foreign Tax Credit using Form 1116, or some combination thereto.

You would need to model the return BOTH ways to determine which is best.

If you need professional help doing this, email me at [email protected].

info_b3101 · Jan 23, 2011, 04:19 PM

Thanks for you reply ATE!
I think MFJ is definitely better for us. But I have few questions. My husband is self employed in india and his income was < $4000. Do we just add this amount to total income (my +4000) what doc is needed to show his income

AtlantaTaxExpert · Jan 24, 2011, 08:10 AM

Yes, you MUST include his income on your joint return.

It would be reflected as Foreign Income on Line #7 of Form 1040. If he paid income taxes to your home country on that money, you would also submit Form 1116 (Foreign Tax Credit) to claim the tax credit for those taxes paid and avoid double taxation.

info_b3101 · Jan 24, 2011, 09:01 AM

Thanks!
He didn't have to pay taxes (income was low). So instead can I use Form 2555.
1. Add a comment on Line #7 (near amount) that it includes Foreign income too &
2. on line 21 mention 'form 2555' and put the foreign income to exclude.

AtlantaTaxExpert · Jan 24, 2011, 09:44 AM

Yes, Form 2555 CAN be used. You ADD the income on Line #7 with the "Foreign Income" comment, then deduct the foreign income on Line #21 as a negative number. The calculations are shown on Form 2555.

info_b3101 · Jan 24, 2011, 09:48 AM

Thanks a lot, your guidance really helped me get a clear picture. I am going to start preparing the tax return. If I get stuck will probably get professional help from you!

AtlantaTaxExpert · Jan 24, 2011, 11:21 AM

Excellent! If you need help, just email me at [email protected].