How did you guys do your taxes your first year of marriage?

[Gylden]

OlgaH,
Interesting links, but I think I need a team of attorneys to interpret these. It looks as though Ukraine and the US have a tax treaty, which basically addresses the double taxation question, however in these links I couldn't find what sort of ceiling there is for income earned of a Ukrainian citizen working abroad.
I don't think it is often thought about, but could be an issue for FSU citizens if they are earning income outside of the FSU land and not complying with their tax reporting system.?? I hadn't thought of it myself until this thread. I am familiar with the laws concerning US citizens working abroad, which is probably why I caught this implication concerning my wife and many others.

[Boethius]

Ukraine, like Russia, taxes based on residency.  The general test is 183 days resident in the country, or if that is where an individual declares himself/herself resident, or if the person has not severed ties with the country.  

If your wife is living in Norway, and is paying tax in Norway, she will not pay tax in Ukraine if she is not resident.  If she pays tax in both jurisdictions, she may be able to apply a treaty, if one is in place, to avoid double taxation (the availability of tax treaties should not be, but in some jurisdictions, is partly contingent on local tax legislation).  Most jurisdictions give a foreign tax credit for taxes paid in one jurisdiction which are subject to tax in another jurisdiction.  I suspect that if your wife is paying tax in Norway, or another West European country, the rates will be higher than in Ukraine.

On the US question, if a non resident alien is married to a US citizen, the non resident can elect to file as a US resident, and will be taxed on worldwide income for the entire year.  The non resident will receive a foreign tax credit for taxes paid, but generally, the IRS will disallow treaty relief.

[Gylden]

Thanks Boethius,
 In the case where she is living in Norway, but has not registered herself "out" of Ukraine. The internal passport that Ukrainians have does it technically affect the official resident status? or is it irrelevant?

[Boethius]

It should be irrelevant.  But residency (outside the 183 days) is a question of fact, not cut and dried law.  Ukraine may state she is resident if she has not declared in a tax return that she has ceased to be resident, and they would look at factors such as bank accounts in Ukraine, a house there, if she has dependents there, etc.  She could counter with she married, was working abroad, and had no intention of returning.

I wouldn't worry too much about it if she is paying tax in Norway.

[Gylden]

Thanks again Boethius,
It is allways better to understand these things, to avoid future problems.
I understand more now.

[Boethius]

The Norway-Ukraine tax treaty may also have a "tie breaker" rule for residency.  In most tax treaties, it is Article 4.

[roykirk]

Good info, thanks everyone.  I think in the end, I'm not claiming her 2009 salary.  Not only does Russia not submit a W-2 to the United States for their citizens, but my wife has no idea what she made and what was paid in taxes.  She threw away all those documents when she moved thinking she had no use for them here.  Plus, she had this complicated "black" salary thing she's tried to explain to me that I'm sure would complicate things. 

[kievstar]

Regarding the foreign tax credit for USA.  More than likely the tax rate is higher on income in USA than what your wife paid on taxes in Russia or Ukraine.  So not much of a credit.  Would be more of a debit. Unless she actually paid taxes at more than 20%. 

If she has less than 10,000 usd in earnings in Russia / Ukraine and you had more than $50,000 usd earnings in USA - by claiming her as a dependent in USA your going to make out.

USA is also one of the few countries that if you work abroad you have to pay taxes on foreign income in the USA and taxes in the country you work.  You get a foreign tax credit but that disappears quickly when you go over a certain amount. So your paying double tax which most countries do not do.  But if you take this away about 20% of USA tax revenues disappear.  USA makes a ton on foreign expat workers like myself. 

Rules have not changed.  Enot did it properly.  But how is the IRS ever going to prove that she worked? USA Tax code is designed to hit expat workers and high earners with tax so 70-80% of the population leeches off the 20-30%.

[OlgaH]

The Norway-Ukraine tax treaty may also have a "tie breaker" rule for residency.  In most tax treaties, it is Article 4.

I think they have if they have it with USA. In Russian:  http://www.uazakon.com/document/spart28/inx28572.htm

Gylden,
Have you tried to google the treaty or convention in Norwegian?

Also your wife can look through Ukraine law http://zakon.rada.gov.ua/cgi-bin/laws/main.cgi?nreg=889-15

So, as I understood from the law if your wife doesn't spend in Ukraine more than 183 days (including her arrival and departure days) during tax year she should not worry so much about taxes as Boethius already mentioned.