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

[roykirk]

I'm curious how you all handled your tax filing the first year you were married.  Despite some research on our own situation, I'm still a bit confused.  I'll try to give the highlights of our situation.

Wife moved here on K-1 in early June 2009 after having quit her Russian job in May.  She hasn't worked since she arrived in the U.S.  We got married in August and on January 5, 2010 she received her Green Card.  When it comes to filing for 2009 taxes, I plan on filing married-joint.  Where I'm confused is when it comes to her 2009 income in Russia before she moved here.  My research seems to indicate that we'll have to claim her Russian income on our return and utilize a Foreign Tax Credit form in the hopes that she won't get dinged for taxes in the U.S. as well.  But I've also read other sources that are vague enough to make me think that maybe we won't have to claim it since she hasn't earned any foreign income since she moved here. 

I'm inclined not to worry about it since I doubt the IRS would have any idea what she earned in Russia before she moved here.  The other part is that even if we did want to claim her salary, she didn't bring any documentation with her proving her salary or what taxes were withheld. 

[Gylden]

Well I am not an expert by all means, but I believe the foreign earned income laws are for US citizens and maybe Green Card holders. As she is not a citizen yet or a green card holder last year, the money she earned overseas should not be taxable in the US.
An interesting thought to consider though is if Russia has similar laws, there might be a ceiling on how much she can earn in the US without paying taxes to Russia.
Don't you have an accountant?

[roykirk]

No, I've always done my own taxes as I don't buy and sell stocks, own rental property, or have a second business.  It takes me all of 15 minutes to do it using Turbo Tax. 

My understanding is that the reportable income laws are indeed for Green Card holders as well, but the fact that she wasn't a GC holder during 2009 is where I get confused on the necessity of reporting her income.

[Blues Fairy]

IRS does not care about her income in Russia, since she had no status in the US before she arrived.  The count begins once she gets a status, i.e. EAD or green card etc. 

And yes you have to file married jointly while her immigration status (visa or green card) is dependent on you.

[roykirk]

Thanks, Blues Fairy.  That's the advice I needed. 

[Gylden]

BF, or anyone who knows?
Do you know if Russia or Ukraine have tax laws about foreign earned income?
Like for example what my wife earns here is taxable there? over a certain amount of course?

[roykirk]

BF,
Do you know if Russia or Ukraine have tax laws about foreign earned income?
Like for example what my wife earns here is taxable there? over a certain amount of course?

I know you were asking BF, Gylden, but how would Russia or Ukraine collect taxes on money your wife earned here, even if they wanted to? 

[Gylden]

Well it is just like when a US citizen has the obligation to pay taxes on foreign earned income to the US.
As my example: I am living and working in Norway, I pay taxes here, however whatever I earn over a certain ceiling, I must pay taxes on to the US. As a US citizen we are obligated to file a return every year whether or not we have breached the ceiling.

[Blues Fairy]

Do you know if Russia or Ukraine have tax laws about foreign earned income?  Like for example what my wife earns here is taxable there? over a certain amount of course?

It depends on where her residence is.  If she is a foreign resident (over 180 days out of the year outside of Russia, IIRC), her US income is not taxable in Russia.

[Gylden]

I see, this is where unresolved PMG ?sp issues could make a problem. She is from Ukraine and we currently reside in Norway, she has permant residence status here in Norway, but still has not organised that PMG to leave Ukraine. (at least it is my understanding) I don't know if I am calling it correctly PMG = Internal passport.

[Blues Fairy]

I see, this is where unresolved PMG ?sp issues could make a problem. She is from Ukraine and we currently reside in Norway, she has permant residence status here in Norway, but still has not organised that PMG to leave Ukraine. (at least it is my understanding) I don't know if I am calling it correctly PMG = Internal passport.

I have no knowledge of the Ukrainian laws but in Russia, residence in the tax sense is determined by the actual number of days spent in Russia. 

[kievstar]

If your wife is married to you during 2009 this is what needs to happen.

You need to complete your 2009 return with your wife as a dependent.  than there is a form you complete with your 2009 return and send to IRS.  IRS will take 2 months to review.  Than you get her tax number and can file your 2009 return.

Now remember W-2's are due end of January 31.  So do your return first week of February and go to IRS (or internet) to get form to complete and send to IRS your return and form.  They take up to two months to review.  So it gets tight on filing in time for April 15th.  I just visited the IRS office in person to get the form (I forget - maybe a W7 form???) and spoke with an agent. 

[roykirk]

If your wife is married to you during 2009 this is what needs to happen.

You need to complete your 2009 return with your wife as a dependent.  than there is a form you complete with your 2009 return and send to IRS.  IRS will take 2 months to review.  Than you get her tax number and can file your 2009 return.

Now remember W-2's are due end of January 31.  So do your return first week of February and go to IRS (or internet) to get form to complete and send to IRS your return and form.  They take up to two months to review.  So it gets tight on filing in time for April 15th.  I just visited the IRS office in person to get the form (I forget - maybe a W7 form???) and spoke with an agent.  

Just looked up the W-7 form and it says it is only for people who are not U.S. Citizens or Permanent Residents.  Since my wife has received her Green Card and is thus a permanent resident, she doesn't need to do this.  She already has a Social Security card so she should not need any other documentation when it comes to filing for taxes.

[OlgaH]

BF, or anyone who knows?
Do you know if Russia or Ukraine have tax laws about foreign earned income?
Like for example what my wife earns here is taxable there? over a certain amount of course?

Gylden, please look through

Tax Convention Ukraine -- USA
GENERAL EFFECTIVE DATE UNDER ARTICLE 29
1 JANUARY 2001
http://www.fifoost.org/ukraine/steuern/dba_us-ukr/index.php


Tax Convention
USA -- Russian Federation
INCOME TAX CONVENTION WITH THE RUSSIAN FEDERATION
http://www.fifoost.org/russland/steuern/dba_us-rus/index.php

U.S. Tax Treaties
http://www.unclefed.com/ForTaxProfs/Treaties/index.html

[kievstar]

You got social security card your all set.  Regarding her income do not worry about it.  They will never check.

[Enot]

IRS does not care about her income in Russia, since she had no status in the US before she arrived.  The count begins once she gets a status, i.e. EAD or green card etc. 

WRONG!!!  Legally you have to declare her earnings but as someone said, they probably wouldn't check.

[Turboguy]

My accountant does my taxes and I don't pay much attention to them but he did ask me what she made in Russia so it must come into play somewhere.

[tfcrew]

A bit foggy about the first year but I am really sure that I claimed my wife as a dependent.

[kievstar]

Enot is right, her income for 2009 counts in USA if you claim her.

[Vaughn]

I disagree. She received the Green Card in January and thus is relieved of any tax burden for 2009.

Had the GC been received prior to year's end she would have effectively made the transition from
non-resident alien to resident alien, and therefore would have to file as a Dual Status alien for that
year. Still, only a portion of income would be taxable. However, an alien who has been present in the
United States at any time during a calendar year as a Lawful Permanent Resident may choose to be
treated as a resident alien for the entire calendar year.


She can be claimed, having been married in 2009, and roykirk does not have to declare her overseas
income - and breaks no USA law in doing that. Blues Fairy was correct according to IRS.

[Enot]

When I filled my taxes in 2007 for year 2006, the IRS said I had to claim my wife's income when she worked in Russia.  Now things may have changed in 3 years but I doubt it.

[Vaughn]

When I filled my taxes in 2007 for year 2006, the IRS said I had to claim my wife's income when she worked in Russia.  Now things may have changed in 3 years but I doubt it.

It's very possible the ruling has changed. I remember one year where I could not claim the
Child Tax Credit where my stepdaughter was concerned; the following tax year the rules were
revised -  then as if to slap us again, she aged out at 18 on December 19, which disqualified us
altogether.

[roykirk]

When I filled my taxes in 2007 for year 2006, the IRS said I had to claim my wife's income when she worked in Russia.  Now things may have changed in 3 years but I doubt it.

Out of curiosity, were your circumstances similar or identical to mine?  i.e. Did your wife move to the U.S. in 06 but got her permanent residency in 07?

[Markus]

I didn't include her income in Russia on our return for the 1st year. I didn't even
think about it until your post.

Mark

[Blues Fairy]

Found this: http://www.visajourney.com/forums/index.php?showtopic=170514&st=15&p=2536435&#entry2536435

Looks like if your wife chooses to be treated as a resident alien for tax purposes, foreign income does indeed have to be declared.  But there is a $87,600 exclusion for foreign-earned income if 330 days were spent abroad out of any consecutive 12 months ended in the tax year (which would apply to a new immigrant).

P.S. Sorry for my misleading advice up thread.  I moved on Dec. 6, 2007 and was a non-resident for the rest of that year so we never bothered with my Russian income.  No problem so far.