Citizen Married to Non-resident Alien

Discussion in 'Tax' started by Larry Israel, May 18, 2012.

  1. Larry Israel

    Larry Israel Guest

    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?

    --
    << ------------------------------------------------------- >>
    << 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. >>
    << ------------------------------------------------------- >>
     
    Larry Israel, May 18, 2012
    #1
    1. Advertisements

  2. Larry Israel

    Bill Brown Guest

    On May 18, 10:47 am, (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

    --
    << ------------------------------------------------------- >>
    << 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. >>
    << ------------------------------------------------------- >>
     
    Bill Brown, May 18, 2012
    #2
    1. Advertisements

  3. "Larry Israel" <> wrote in message
    news:...

    >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 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. >>
    << ------------------------------------------------------- >>
     
    removeps-groups, May 18, 2012
    #3
  4. Larry Israel

    Dick Adams Guest

    removeps-groups <> wrote:
    > (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

    --
    << ------------------------------------------------------- >>
    << 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. >>
    << ------------------------------------------------------- >>
     
    Dick Adams, May 19, 2012
    #4
  5. Larry Israel

    Alan Guest

    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
    >


    --
    << ------------------------------------------------------- >>
    << 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. >>
    << ------------------------------------------------------- >>
     
    Alan, May 19, 2012
    #5
  6. Larry Israel

    D. Stussy Guest

    "Dick Adams" wrote in message news:jp782r$9rc$...
    removeps-groups <> wrote:
    > (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. >>
    << ------------------------------------------------------- >>
     
    D. Stussy, May 20, 2012
    #6
  7. On May 20, 7:39 pm, "D. Stussy" <>
    wrote:
    > "Dick Adams"  wrote in messagenews:jp782r$9rc$...
    > removeps-groups <> wrote:
    > > (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

    --
    << ------------------------------------------------------- >>
    << 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. >>
    << ------------------------------------------------------- >>
     
    David Rosenbaum, May 25, 2012
    #7
  8. Larry Israel

    Alan Guest

    On 5/25/12 9:46 AM, David Rosenbaum wrote:
    > On May 20, 7:39 pm, "D. Stussy"<>
    > wrote:
    >> "Dick Adams" wrote in messagenews:jp782r$9rc$...
    >> removeps-groups<> wrote:
    >>> (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

    --
    << ------------------------------------------------------- >>
    << 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. >>
    << ------------------------------------------------------- >>
     
    Alan, May 25, 2012
    #8
  9. Larry Israel

    Dick Adams Guest

    David Rosenbaum <> 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
    ====

    www.irs.gov/businesses/small/international/article/0,,id=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 ===

    --
    << ------------------------------------------------------- >>
    << 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. >>
    << ------------------------------------------------------- >>
     
    Dick Adams, May 26, 2012
    #9
    1. Advertisements

Want to reply to this thread or ask your own question?

It takes just 2 minutes to sign up (and it's free!). Just click the sign up button to choose a username and then you can ask your own questions on the forum.
Similar Threads
  1. CBotella

    Non resident or Resident alien?

    CBotella, Mar 6, 2004, in forum: Tax
    Replies:
    0
    Views:
    374
    CBotella
    Mar 6, 2004
  2. v0c
    Replies:
    2
    Views:
    1,315
  3. Replies:
    1
    Views:
    1,213
    Katie
    Feb 15, 2007
  4. Replies:
    1
    Views:
    525
  5. Lawrence Israel
    Replies:
    2
    Views:
    207
    remove ps
    Jun 10, 2013
Loading...

Share This Page