r2i forum

I have a pecualiar tax situation hopefully the experts in the forum can help.

I friend of mine trained in US and did his residency. He was on a J1 visa and for that 2 yr period after training he worked in a tax free jurisdiction for 2 years outiside US earning a a salary of 240K/yr.

during this period of 2 years his wife is on a F1 visa, and his kids are going to school in US and his family is living in US. He just travels in and out of US as a visitor. she fileszero returns as a student.

My understanding is that, if she is filing returns for the family it should include income from his job that are substantial. To my knowledge US taxes you on worldwide income.

His tax consultant is telling him that since his income is outside of US and he is not a resident of US and he is only visiting US as a visitor and stays only 30-40 days/ yr in US. but is she not disclosing his SSID and saying in the application, that the guy bearing SSID is having zero income.

I want to guide him and suggest a new tax consultant if the board members agree with me.

RK

rajradio;364803She fileszero returns as a student.

My understanding is that, if she is filing returns for the family it should include income from his job that are substantial.

Did she file the return or she did not? If she had no income she is not required to file the return.

Should she file a return, they both will have to make an election whether they want non resident spouse to be treated as resident to file joint return or else she will have to file as head of household. Should they file MFJ and attaching a statement that non resident spouse be treated as resident, then his income will come under tax purview.

Desi;364900Did she file the return or she did not? If she had no income she is not required to file the return.

Should she file a return, they both will have to make an election whether they want non resident spouse to be treated as resident to file joint return or else she will have to file as head of household. Should they file MFJ and attaching a statement that non resident spouse be treated as resident, then his income will come under tax purview.

thanks desi,

I think my question is answered by your post

I did not go through their tax papers I think they are filing with her as the head of teh household. But in the family members listed, his name would be listed with his SSID, so my question is even if he is non resident, how can they declare his income to be be zero when he infact making 240 K(though he is domiciled outside US), after all US(unlike India) is family based income taxation right?

RK

are F-1 student considered as a resident?

[QUOTE]Under Internal Revenue laws and regulations your resident or nonresident alien status is determined by either a “Green Card”, marriage to a U.S. citizen or resident, or substantial presence test. For the substantial presence test, the number of days in your first 5 years in the U.S. as a student (F-1 visa) or first 2 years if you are a teacher/researcher (J-1 visa) are not counted. During this time you are “exempt” from the substantial presence test.
Nonresident aliens are taxed only on income from U.S. sources. During the time you are a nonresident alien, you must fill out either a 1040NR or 1040NR-EZ form if you have U.S. source income and Form 8843 if you are “exempt” from the substantial presence test.

source

So if she files as NRA..can she not include him on her return?

thanks both of you, now all my queries are answered.

RK

rajradio;364902thanks desi,

I think my question is answered by your post

I did not go through their tax papers I think they are filing with her as the head of teh household. But in the family members listed, his name would be listed with his SSID, so my question is even if he is non resident, how can they declare his income to be be zero when he infact making 240 K(though he is domiciled outside US), after all US(unlike India) is family based income taxation right?

RK

Spouse is not considered as a dependent. So the spouse cannot be on the dependent list in the filing by wife as head of household. The income of dependents does not go on to the tax form except for some situations like income below a certain threshold.

laks0;364908are F-1 student considered as a resident?


source

So if she files as NRA..can she not include him on her return?

If she is here under 5 years, then she files as NRA in which case she has to mark status married but cannot claim dependents or husband or file it with husband. NRA filings are individual filings.

It is unclear as to why she is filing if she is filing when she has no income.

thanks once again. he and his tax consultant were right.

RK