US Tax & UK Marriage

It's getting late in the season but I can't seem to find a definitive answer so if someone knows US tax law enough to answer I am forever greatful.

I am a us citizen but I married a uk citizen in december 2002. Normally I file a 1040EZ form but now I am married do I have to declare it on the tax form even though he is not a citizen or resident?  I live in the US and he lives in the UK.

how will this effect my tax status if I do have to file as married?

is there another form I should use to file?

Thanx!

Hi there

You need to file a married filing separate return in 2002 as you were married at the end of th etax year and your husband is a non-resident alien.  However, MFS filers cannot file a 1040EZ but can file 1040A instead.  You will not have to include your husband's income, and deductions in your return (only his name).

You can file this form once you move to the UK as well unless of course you start working in which case you have to file a 1040 (with the relevant schedules) and forms 2555 and 1116.

I hope this helps.

Helen

Helen!  Thanx so much for your help, I'll look at the 1040A form this week.  Now that you mention it though, if I get a job in the UK do I have to file US Taxes and UK Taxes? eep does this mean I'll be paying out the nose?

You do indeed need to pay tax in the Uk if you start working here.

However the good news is that the income your will earn here is subject to the foreign earned income exclusion (calculated on form 2555) and also you can claim a credit on your US return for any UK taxes paid (Calculated on form 1116).  This way you will avoid paying tax twice on the same income.  The bad news is that all of this will make your US tax return a lot more complex....

Helen

Helen you were so helpful but now I seem to be in a quandry since it's tax day of course!

I filed my federal form electronically and it was rejected because no spouse ss#!  There is nothing on the 1040A or electronic form to tell them he doesn't have one since he isn't a resident.

I filed an extension today as I just found out about the rejection.

Additionally I filled out my local form and mailed it instead of electronic and I didn't put a SS# for obvious reasons but now I am worried they will reject that and since the deadline is today I'll be in big trouble even though they owe me money both Fed and State/City!

Thanx for your help which hopefully will come today  

Phena-Gen

Give me a call to discuss on 0208 466 9297. It is easier and quicker that way.

Helen

Helen, sorry I was freaking out at the last minute!  All I need is an audit before I go to the UK LOL but I was able to twist my companies accountants arm to tell me what to put on the forms and I ran to the post office before the deadline and did paper returns since the web based people were absolutely no help.  Hopefully that will be all and I won't have a further problem.

I just wrote "Non-resident alien" under his name and on the place for the SS# for the spouse.

Ok Helen, it is my turn here finally.  I will be married in November and moving to the UK hopefully a couple weeks later...  I do not plan on looking for a job through the end of 2003...  but I will be a resident of the UK at that time...  

Normally I also use the 1040ez...  I am guessing this is all gonna change... correct?  

Please help prepare me...  I will be with my job through October.  Do I file married but filing seperately?...  I do not ever have to claim his wages do I?

I know I am asking early...  but I am an organizer... and I will be wishing to file as soon as possible to get a refund after 2004 begins.

Hi Mfredericka

I assume you are getting married to a Brit who has not lived in the US and also is not a greencard holder.  If this is the case, you can either file jointly and make an election to consider him as a full year resident and enjoy the "married filing joint" filing status.

Altenatively, you can either file "married filing separate" (MFS)or head of household" (HOH).  You can file HOH if you had a qualifying person (other than your husband) living with you for 6 months of the year.

If you file separately, and you do not claim your husbands personal allowance on your return, he will not need to apply for an ITIN number. Othewise he should apply for one now.

As you will be married at the end of the tax year 2003, you will have file as married for the entire year.  You cannot file a 1040EZ if you are filing MFS.  You may be able to file 1040A in 2003.  You should file 1040 for any year that you worked in the UK as you will also need to file forms 2555, and 1116.

I hope I have answered your questions.
Helen

Hi Mfredericka

I assume you are getting married to a Brit who has not lived in the US and also is not a greencard holder.  If this is the case, you can either file jointly and make an election to consider him as a full year resident and enjoy the "married filing joint" filing status.

If you file separately, and you do not claim your husbands personal allowance on your return, he will not need to apply for an ITIN number. Othewise he should apply for one now.

yes you can assume correct...  he is a Brit and has not lived in the US and not a greencard holder...  I am a bit confused though...are you telling me I can file joint and just use my earnings... and reap the benefits of the double deductions, or will he have to show his earnings also from the UK?  (This way meaning he must have an ITIN ?)

In personal allowance are you referring to standard deductions?

can he apply for an ITIN (??) before we are married?


Sorry if I have so many questions...and thank yo very much for your help here.

Michele

PS, I am going to guess that you are down south closer to everyone else...  do you have any recommendations for a tax person such like yourself in the North...  (Newcastle upon tyne) for once I arrive there and decide no to try this on my own?

Sorry, I was not clear before.  If you file joint, you will have to report all your husband's income and expenses also.  

By personal expemptions, I mean the $3,000 for each dependant. This is separte from standard deduction.

You husabnd call apply for an ITIN any time (before of after marriage).

Unfortunately, I don't know a tax consultant in the North.  But with the current technologies, etc,... gerography becomes less important in terms of being close to your tax consultant.  Therefore, I will be happy to help you with your taxes when you get here.  So feel free to call me any time you need help.

Helen

Ok Helen, thank you...

Although he did not make much...  the hassle of getting him to fill out forms for an ITIN and I know he will refuse to add his income to us taxes...  I have my answer...  MFS...  

again thank you...and I am sure you will be hearing from me again.

Michele