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Citizen Married to Non-resident Alien

 
 
Larry Israel
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      05-18-2012, 02:47 PM
A US citizen living overseas, with two citizen children and a non-resident
alien husband. The husband supplies over half the household expenses. Is a
tax status of Married Filing Separately the only tax filing status allowed?

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Bill Brown
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      05-18-2012, 05:00 PM
On May 18, 10:47*am, (E-Mail Removed) (Larry Israel) wrote:
> A US citizen living overseas, with two citizen children and a non-resident
> alien husband. The husband supplies over half the household expenses. Is a
> tax status of Married Filing Separately the only tax filing status allowed?
>


If the U.S. citizen is not paying over 1/2 the costs of maintaining
the household, then her options are limited. She can file Married-
Separate or she can file a joint return with her husband IF he agrees
to be taxed like a resident alien. Note that the exclusion of earned
income provisions of IRC Section 911 are available to resident aliens
so the tax hit on his income MIGHT be limited

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removeps-groups
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      05-18-2012, 06:14 PM
"Larry Israel" <(E-Mail Removed)> wrote in message
news:(E-Mail Removed)...

>A US citizen living overseas, with two citizen children and a non-resident
> alien husband. The husband supplies over half the household expenses. Is a
> tax status of Married Filing Separately the only tax filing status
> allowed?


He should give her the money and she pay the bills, and he doesn't even have
to abide the 13k limit as he is not a citizen, although she would have to
merely report gifts received from a foreign person in excess of 100k or some
amount like that, and she can do HoH.

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<< The foregoing was not intended or written to be used, >>
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Dick Adams
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      05-19-2012, 04:37 AM
removeps-groups <(E-Mail Removed)> wrote:
> (E-Mail Removed) (Larry Israel) wrote:


>> A US citizen living overseas, with two citizen children and
>> a non-resident alien husband. The husband supplies over
>> half the household expenses. Is a tax status of Married
>> Filing Separately the only tax filing status allowed?


> He should give her the money and she pay the bills, and he
> doesn't even have to abide the 13k limit as he is not a
> citizen, although she would have to merely report gifts
> received from a foreign person in excess of 100k or some
> amount like that, and she can do HoH.


The truth is "The husband supplies over half the household
expenses." What's missing here are the income numbers
and the total of the household expenses. If she's making
$50,000 and he's making $500,000, there'll be hell to pay
if and when she gets audited.

Bill Brown's suggestion of having the husband agree to be
taxed as a resident alien is the easiest solution. But it
too is subject to the numbers.

If the husband agrees to be taxed as a resident alien for
2011, is he bound by that agreement for future years?

Dick

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Alan
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      05-19-2012, 06:46 AM
On 5/18/2012 10:37 PM, Dick Adams wrote:
> If the husband agrees to be taxed as a resident alien for
> 2011, is he bound by that agreement for future years?


Yes.... but it can be revoked. If revoked, it can never be reinstated.
>
> Dick
>


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<< The foregoing was not intended or written to be used, >>
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<< that may be imposed upon the taxpayer. >>
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D. Stussy
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      05-20-2012, 04:39 PM
"Dick Adams" wrote in message news:jp782r$9rc$(E-Mail Removed)...
removeps-groups <(E-Mail Removed)> wrote:
> (E-Mail Removed) (Larry Israel) wrote:
>> A US citizen living overseas, with two citizen children and
>> a non-resident alien husband. The husband supplies over
>> half the household expenses. Is a tax status of Married
>> Filing Separately the only tax filing status allowed?

>
> He should give her the money and she pay the bills, and he
> doesn't even have to abide the 13k limit as he is not a
> citizen, although she would have to merely report gifts
> received from a foreign person in excess of 100k or some
> amount like that, and she can do HoH.


The truth is "The husband supplies over half the household
expenses." What's missing here are the income numbers
and the total of the household expenses. If she's making
$50,000 and he's making $500,000, there'll be hell to pay
if and when she gets audited.

Bill Brown's suggestion of having the husband agree to be
taxed as a resident alien is the easiest solution. But it
too is subject to the numbers.

If the husband agrees to be taxed as a resident alien for
2011, is he bound by that agreement for future years?
=========

I don't believe so, just like a married couple need not file jointly each
year. However, that (the former) is an issue I never observed during my IRS
career. My answer assumes that the NRA husband never enters the U.S. to the
point of establishing residency.

--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2011) - All rights reserved. >>
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David Rosenbaum
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      05-25-2012, 03:46 PM
On May 20, 7:39*pm, "D. Stussy" <(E-Mail Removed)>
wrote:
> "Dick Adams" *wrote in messagenews:jp782r$9rc$(E-Mail Removed)...
> removeps-groups <(E-Mail Removed)> wrote:
> > (E-Mail Removed) (Larry Israel) wrote:
> >> A US citizen living overseas, with two citizen children and
> >> a non-resident alien husband. *The husband supplies over
> >> half the household expenses. *Is a tax status of Married
> >> Filing Separately the only tax filing status allowed?

>
> > He should give her the money and she pay the bills, and he
> > doesn't even have to abide the 13k limit as he is not a
> > citizen, although she would have to merely report gifts
> > received from a foreign person in excess of 100k or some
> > amount like that, and she can do HoH.

>
> The truth is "The husband supplies over half the household
> expenses." * What's missing here are the income numbers
> and the total of the household expenses. *If she's making
> $50,000 and he's making $500,000, there'll be hell to pay
> if and when she gets audited.
>
> Bill Brown's suggestion of having the husband agree to be
> taxed as a resident alien is the easiest solution. *But it
> too is subject to the numbers.
>
> If the husband agrees to be taxed as a resident alien for
> 2011, is he bound by that agreement for future years?
> =========
>
> I don't believe so, just like a married couple need not file jointly each
> year. *However, that (the former) is an issue I never observed during my IRS
> career. *My answer assumes that the NRA husband never enters the U.S. to the
> point of establishing residency
>
>


Actually, Alan is right - once revoked, you can't elect to be treated
as a resident. (Of course, if the nonresident gets a green card,
they're back in.)

It's also important to note the HOH possibility. Many overlook that
since in general you can't choose that if you're married. I once had
to explain to an IRS agent (and refer him to the explicit
instructions) that if you're married to a nonresident spouse, that
limitation doesn't apply.

David

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<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
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Alan
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      05-25-2012, 07:01 PM
On 5/25/12 9:46 AM, David Rosenbaum wrote:
> On May 20, 7:39 pm, "D. Stussy"<(E-Mail Removed)>
> wrote:
>> "Dick Adams" wrote in messagenews:jp782r$9rc$(E-Mail Removed)...
>> removeps-groups<(E-Mail Removed)> wrote:
>>> (E-Mail Removed) (Larry Israel) wrote:
>>>> A US citizen living overseas, with two citizen children and
>>>> a non-resident alien husband. The husband supplies over
>>>> half the household expenses. Is a tax status of Married
>>>> Filing Separately the only tax filing status allowed?

>>
>>> He should give her the money and she pay the bills, and he
>>> doesn't even have to abide the 13k limit as he is not a
>>> citizen, although she would have to merely report gifts
>>> received from a foreign person in excess of 100k or some
>>> amount like that, and she can do HoH.

>>
>> The truth is "The husband supplies over half the household
>> expenses." What's missing here are the income numbers
>> and the total of the household expenses. If she's making
>> $50,000 and he's making $500,000, there'll be hell to pay
>> if and when she gets audited.
>>
>> Bill Brown's suggestion of having the husband agree to be
>> taxed as a resident alien is the easiest solution. But it
>> too is subject to the numbers.
>>
>> If the husband agrees to be taxed as a resident alien for
>> 2011, is he bound by that agreement for future years?
>> =========
>>
>> I don't believe so, just like a married couple need not file jointly each
>> year. However, that (the former) is an issue I never observed during my IRS
>> career. My answer assumes that the NRA husband never enters the U.S. to the
>> point of establishing residency
>>
>>

>
> Actually, Alan is right - once revoked, you can't elect to be treated
> as a resident. (Of course, if the nonresident gets a green card,
> they're back in.)
>
> It's also important to note the HOH possibility. Many overlook that
> since in general you can't choose that if you're married. I once had
> to explain to an IRS agent (and refer him to the explicit
> instructions) that if you're married to a nonresident spouse, that
> limitation doesn't apply.
>
> David
>

See my earlier reply. You are bound for later years unless you formally
revoke.

--
Alan
http://taxtopics.net

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<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
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Dick Adams
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      05-26-2012, 07:47 PM
David Rosenbaum <(E-Mail Removed)> wrote:

> It's also important to note the HOH possibility. Many
> overlook that since in general you can't choose that
> if you're married. I once had to explain to an IRS
> agent (and refer him to the explicit instructions)
> that if you're married to a nonresident spouse, that
> limitation doesn't apply.


The problem is that the spouse filing as HoH must have
"paid more than half the cost of keeping up the home".
The OP (Original Poster) stated that the U.S. Citizen
spouse did not pay half.

Dick
====

http://www.irs.gov/businesses/small/...=96729,00.html
http://tinyurl.com/cxsoy9c

== Begin Quote ==
U.S. Citizens and Resident Aliens Abroad - Head of Household
If you are a U.S. citizen married to a nonresident alien you
may qualify to use the head of household tax rates. Although
your nonresident alien spouse cannot qualify you as a head of
household, you can qualify if (a) or (b) applies:

a. You paid more than half the cost of keeping up a home that
was the principal home for the whole year for your mother or
father for whom you can claim an exemption (your parent does
not have to have lived with you), or

b. You paid more than half the cost of keeping up the home
in which you lived and in which one of the following also
lived for more than half the year:

** List of qualifying dependents shipped **

If your spouse was a nonresident alien at any time during the
year and you do not choose to treat your nonresident spouse
as a resident alien, then you are treated as unmarried for
head of household purposes. You must have another qualifying
relative and meet the other tests to be eligible to file as
head of household.

You can use the head of household column in the Tax Table or
the head of household Tax Rate Schedule. It may be advantageous
to choose to treat your nonresident alien spouse as a U.S.
resident and file a joint income tax return. Once you make
the choice, however, you must report the worldwide income of
both yourself and your spouse.
=== End Quote ===

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<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2011) - All rights reserved. >>
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