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  • Tax reporting

    My husband submitted an AOS for myself in March 2022. Currently, I have a consultancy gig with a contract issued in my home country. We are wondering if I am required to declare my income in the US while my AOS is pending.

    Thank you!

  • #2
    First you need to determine whether you are a resident alien or nonresident alien for the year. If you stayed in the US for more than half of the year, then you pass the Substantial Presence Test and you are a resident alien for the year. Even if you don't pass the test, if you want to file jointly with your US citizen or resident alien spouse, then you will nee to be treated as a resident alien for the year.

    Resident aliens are taxed by the US on their worldwide income (though Foreign Earned Income Exclusion and/or Foreign Tax Credit can be used to reduce the US tax). Nonresident aliens are taxed by the US on US-sourced income. So no matter if you are resident alien or nonresident alien, the income from the work you did while you were in the US will be subject to US tax.

    This is my personal opinion and is not to be construed as legal advice.

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    • #3
      Originally posted by newacct View Post
      First you need to determine whether you are a resident alien or nonresident alien for the year. If you stayed in the US for more than half of the year, then you pass the Substantial Presence Test and you are a resident alien for the year. Even if you don't pass the test, if you want to file jointly with your US citizen or resident alien spouse, then you will nee to be treated as a resident alien for the year.

      Resident aliens are taxed by the US on their worldwide income (though Foreign Earned Income Exclusion and/or Foreign Tax Credit can be used to reduce the US tax). Nonresident aliens are taxed by the US on US-sourced income. So no matter if you are resident alien or nonresident alien, the income from the work you did while you were in the US will be subject to US tax.
      Thank you for. your response. Am I required to get a TIN? I arrived in August 2021 and got married in November 2021. I filed my 2021 taxes in my home country via employer.

      My husband already filed his taxes this year and upon recommendation of the accountant, filed with a single status.

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      • #4
        When did you guys get married?

        This is my personal opinion and is not to be construed as legal advice.

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        • #5
          Originally posted by newacct View Post
          When did you guys get married?
          We got married on November 2021. Will there be any implications?

          Comment


          • #6
            Since your husband was married as of December 31, 2021, he cannot file as Single filing status for 2021. That would be fraud. He needs to file as either Married Filing Jointly or Married Filing Separately.

            If you guys file as Married Filing Jointly, you would need to get an ITIN, and you would need to be treated as resident for all of 2021. This means you would need to report your worldwide income for 2021 on US taxes, though you would be able to use the Foreign Earned Income Exclusion on the 12-month period before you came to the US, to exclude the first approximately $108k of foreign earned income from US taxes. Getting an ITIN can be a hassle, however.

            If you guys file as Married Filing Separately, and you didn't have any income after you arrived in the US, you would probably not need to file a tax return, in which case you would not need to get an ITIN. (However, if your husband is domiciled in a community property state, half of his income after marriage is considered your income, which means you would have US income and would need to file a US tax return.) However, you guys will almost certainly pay more taxes with Married Filing Separately than Married Filing Jointly, even more so if your incomes are very different.

            If you would not need to get an ITIN if you guys do Married Filing Separately, and it is too much hassle to get an ITIN, another option might be to file as Married Filing Separately first, and then amend it to Married Filing Jointly once you get an SSN.

            This is my personal opinion and is not to be construed as legal advice.

            Comment


            • #7
              As a general rule, if you are a resident of the United States, you are required to report and pay taxes on your worldwide income to the US Internal Revenue Service (IRS) regardless of where the income was earned. However, while your Adjustment of Status (AOS) is pending, you are considered to be in a "limbo" status, and your tax status could be affected by your immigration status.

              It's important to consult with a tax professional or tax service to determine your tax liability, as the tax implications of your situation can be complex. They will be able to take into account your specific circumstances and provide you with accurate information.

              Additionally, if you are a resident of a foreign country, you may also be required to file taxes in that country. It's important to check the tax laws of your home country and consult with a tax professional there as well.

              Comment


              • #8
                Originally posted by J726_PH View Post

                Thank you for. your response. Am I required to get a TIN? I arrived in August 2021 and got married in November 2021. I filed my 2021 taxes in my home country via employer.

                My husband already filed his taxes this year and upon recommendation of the accountant, filed with a single status.

                His accountant is wrong.

                Are you working remotely in the U.S. without an EAD?

                Comment


                • #9
                  Typically, in the U.S., you are required to report your worldwide income, even while your Adjustment of Status (AOS) is pending. However, tax laws can be complex, and there may be exceptions or specific rules that apply to your situation.

                  To get accurate and personalized guidance, it's a good idea to consult with a tax professional. They can help you understand your tax obligations and ensure you're following the right procedures. You might also want to check out thevatconsultancy.com for more information.‚Äč
                  Last edited by LeyanXX; 10-16-2023, 07:31 AM.

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