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  • Questions regarding USA Income Tax Return for 2013

    Hi,

    Please help me with following questions regarding 2013 income tax return. Following are my details -

    1) I am an Indian Citizen. Came to USA in March 2013 on H1B Visa. Worked and received salary in India for Jan and Feb and getting salary in USA starting March 2013.

    2) My wife is Indian Citizen. She stayed in India entire 2013. She is a housewife and does not have any income whatsoever. She already has ITIN from our last stint to USA.

    3) My Son is a USA Citizen with SSN number. He stayed in India entire 2013 with his Mom.

    4) My daughter is Indian Citizen. She stayed in India with her Mom and has never been to USA. She does NOT have ITIN.

    Please help me with following questions -

    1) I will be filling as "Married Filling Jointly" for 2013. As my wife was non-resident alien in 2013 and we will be treating her as resident for tax purposes, is it mandatory to attach a statement /declaration for same with return? We have filled in same status for several years in past (2006-2010), but at that time both of us were in USA. Will IRS even know she was not with me in USA this time? Getting her signature on such statement from India is a pain and I would like to avoid it if possible.

    2) My Son being a US Citizen qualifies for dependent exemption. He also qualifies all points for Child Tax Credit except the point "Child should have lived with you for more then 6 months". For this point, I think he should qualify as he lived with his Mom all the time and we both are filling joint return. Can we say that "He lived with us" and claim child tax credit? (Remember wife does not have have any income).

    3) I read somewhere that since we are treating my non-resident alien spouse as resident for tax purposes, we both have to declare our worldwide income. Do I need to include my India salary for Jan and Feb in USA tax return?

    4) If I include my India salary, what currency conversion rate should I use to report earning / tax in US Dollars. In Jan / Feb 1 USD was 55 INR which has now increased to 61 INR.

    5) As I paid income tax in India on Jan / Feb Salary, should I claim that tax under foreign tax credit head?

    6) I was planning to e-File my return. Can I still do that with all additional forms or statements as mentioned above. Specially with a statement from spouse asking to consider her as Resident alien (if mandatory) and with Foreign Employer compensation and Foreign tax credit as mentioned above.

    7) I believe as my daughter is non-resident alien and has never been to USA, I cannot claim her as dependent, so she will not figure anywhere in my return. Can you please confirm this is correct?

    8) Sorry for so many questions... Last one...will having all above adjustments increase my odds of getting picked up for an IRS Audit at a later date? I will be using Standard deduction.

    Will appreciate if you can reply point wise. If you do not know all answers, please reply whatever you know. Thanks.

    Regards

  • #2
    Please see my responses in CAPS after each question:

    Originally posted by yusufalik View Post
    Hi,

    Please help me with following questions regarding 2013 income tax return. Following are my details -

    1) I am an Indian Citizen. Came to USA in March 2013 on H1B Visa. Worked and received salary in India for Jan and Feb and getting salary in USA starting March 2013.



    2) My wife is Indian Citizen. She stayed in India entire 2013. She is a housewife and does not have any income whatsoever. She already has ITIN from our last stint to USA.

    3) My Son is a USA Citizen with SSN number. He stayed in India entire 2013 with his Mom.

    4) My daughter is Indian Citizen. She stayed in India with her Mom and has never been to USA. She does NOT have ITIN.

    Please help me with following questions -

    1) I will be filling as "Married Filling Jointly" for 2013. As my wife was non-resident alien in 2013 and we will be treating her as resident for tax purposes, is it mandatory to attach a statement /declaration for same with return? We have filled in same status for several years in past (2006-2010), but at that time both of us were in USA. Will IRS even know she was not with me in USA this time? Getting her signature on such statement from India is a pain and I would like to avoid it if possible.

    I WOULDN'T BOTHER WITH THE STATEMENT IF IT PRESENTS YOU WITH A LOGISTICS PROBLEM. YOUR RETURN IS NOT AUDITED FOR THAT STATEMENT.

    2) My Son being a US Citizen qualifies for dependent exemption. He also qualifies all points for Child Tax Credit except the point "Child should have lived with you for more then 6 months". For this point, I think he should qualify as he lived with his Mom all the time and we both are filling joint return. Can we say that "He lived with us" and claim child tax credit? (Remember wife does not have have any income).

    IF CHILD WASN'T IN U.S. FOR MOST OF YEAR, DON'T CLAIM HIM FOR CHILD TAX CREDIT.

    3) I read somewhere that since we are treating my non-resident alien spouse as resident for tax purposes, we both have to declare our worldwide income. Do I need to include my India salary for Jan and Feb in USA tax return?

    I CAN'T ANSWER THIS.

    4) If I include my India salary, what currency conversion rate should I use to report earning / tax in US Dollars. In Jan / Feb 1 USD was 55 INR which has now increased to 61 INR.

    MAKE A 'GOOD-FAITH' CONVERSION USING RATES IN PLACE WHEN MONEY WAS PAID.

    5) As I paid income tax in India on Jan / Feb Salary, should I claim that tax under foreign tax credit head?

    YES.

    6) I was planning to e-File my return. Can I still do that with all additional forms or statements as mentioned above. Specially with a statement from spouse asking to consider her as Resident alien (if mandatory) and with Foreign Employer compensation and Foreign tax credit as mentioned above.

    YOU CAN TRY, BUT MIGHT BE REJECTED AND REQUIRE A PAPER FILE.

    7) I believe as my daughter is non-resident alien and has never been to USA, I cannot claim her as dependent, so she will not figure anywhere in my return. Can you please confirm this is correct?

    SINCE DAUGHTER IS INELIGIBLE FOR ITIN OR SSN, YOU CAN'T CLAIM HER AS DEPENDENT.

    8) Sorry for so many questions... Last one...will having all above adjustments increase my odds of getting picked up for an IRS Audit at a later date? I will be using Standard deduction.

    Will appreciate if you can reply point wise. If you do not know all answers, please reply whatever you know. Thanks.

    Regards

    Comment


    • #3
      Can I file Married Filing Jointly?

      Hi,

      Thanks for your response. I have following basic doubt on my eligibility for filing joint return with my wife.

      As you can see, I was non-resident in the beginning of year and resident at the end of year, I fall under dual-status taxpayer for 2013, which imposes lot of restrictions like cannot file joint return, cannot claim child tax credit etc.

      My question is - Can I file "Married Filing Jointly" with my wife using IRC ยง6013(g) election, which allows non-resident spouse to be treated as resident if filing jointly. In normal cases it is allowed, but I am asking this as I was non-resident in the beginning of year. Following link on IRS site looks favourable, but I need confirmation from experts -



      For easy reference, following are my details -
      1) Me and my wife are Indian citizens.
      2) We were last in USA together in year 2010.
      3) We both were out of USA (never visited) in 2011 and 2012
      4) I came back to USA in March 2013 alone (H1 visa - Has SSN). I continuously stayed in USA till 31st Dec 2013.
      5) My wife did not come with me and stayed in India entire 2013 taking care of my kids. She already has an ITIN number from our previous Stint. One of my kid is USA born Citizen and has SSN.

      Regards

      Comment


      • #4
        Got the RFE because of the paycheck issue.

        Hi Friends,

        My port of entry in USA was on 30th Nov 2013(Saturday) and my first working day was on 2nd Dec 2013(Monday). I got my SSN on 8th January 2014 and then my salary got processed for the month of December and January on pay date 1/24/2014. Total 3 pay stub got generated on 1/24/2014. Somehow in all my three January paychecks which got generated on 24th have same pay period like 1st Jan to 15th Jan. Because of that my W2 form was not generated for the year 2013. Currently I got the RFE in H1 transfer for not having the W2 and USCIS is asking why you didnt pay the tax for the year 2013 though you were here. Request you to please guide me in this.

        Thanks.

        Comment


        • #5
          You need to provide the proof of what you are describing (paystubs) and a succinct explanation (as you provided below) to USCIS. Your explanation makes sense to me, and you understand why you don't have W2, but you need to prove, with paper and an explanation, to a USCIS staff person.

          --Ray B

          Originally posted by dev.bhalgama View Post
          Hi Friends,

          My port of entry in USA was on 30th Nov 2013(Saturday) and my first working day was on 2nd Dec 2013(Monday). I got my SSN on 8th January 2014 and then my salary got processed for the month of December and January on pay date 1/24/2014. Total 3 pay stub got generated on 1/24/2014. Somehow in all my three January paychecks which got generated on 24th have same pay period like 1st Jan to 15th Jan. Because of that my W2 form was not generated for the year 2013. Currently I got the RFE in H1 transfer for not having the W2 and USCIS is asking why you didnt pay the tax for the year 2013 though you were here. Request you to please guide me in this.

          Thanks.

          Comment


          • #6
            Originally posted by rayb View Post
            You need to provide the proof of what you are describing (paystubs) and a succinct explanation (as you provided below) to USCIS. Your explanation makes sense to me, and you understand why you don't have W2, but you need to prove, with paper and an explanation, to a USCIS staff person.

            --Ray B
            Thanks Ray for replying to my case. I was just wondering after providing all my paystubs and proper explanation with notarized affidavit, will USCIS consider my case or is there any chances of rejection.

            Also on safe side I have filed extension with my current company. My visa is expiring on this 30th. I was just wondering is it fine if we file an extension when H1 transfer is in process and also when it is in RFE.

            Thanks

            Comment


            • #7
              Accounting companies near me Your Books On Time

              Originally posted by yusufalik View Post
              Hi,

              Thanks for your response. I have following basic doubt on my eligibility for filing joint return with my wife.

              As you can see, I was non-resident in the beginning of year and resident at the end of year, I fall under dual-status taxpayer for 2013, which imposes lot of restrictions like cannot file joint return, cannot claim child tax credit etc.
              Accounting companies near me http://yourbooksontime.com/accounting-firms
              My question is - Can I file "Married Filing Jointly" with my wife using IRC ยง6013(g) election, which allows non-resident spouse to be treated as resident if filing jointly. In normal cases it is allowed, but I am asking this as I was non-resident in the beginning of year. Following link on IRS site looks favourable, but I need confirmation from experts -



              For easy reference, following are my details -
              1) Me and my wife are Indian citizens.
              2) We were last in USA together in year 2010.
              3) We both were out of USA (never visited) in 2011 and 2012
              4) I came back to USA in March 2013 alone (H1 visa - Has SSN). I continuously stayed in USA till 31st Dec 2013.
              5) My wife did not come with me and stayed in India entire 2013 taking care of my kids. She already has an ITIN number from our previous Stint. One of my kid is USA born Citizen and has SSN.

              Regards

              how did you solve the issue?

              Comment

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