File separately or jointly?

Hi all,

I am the UKC and my hubby the USC, he isn't currently working here in the UK but has come to the point where he has to file his tax return for the US.

Should we file separately or jointly?

He is doing an online degree and each year has to fill out a FAFSA form and for last year his parents didn't claim for him for tax purposes as he was here for the majority of 2010.
He earned around $2500 for 6 weeks work last summer in the States

Any advice on whether it would be better for us to file separately or jointly? I'm confused as to what the pros and cons are?

Finally, we didn't get married until 15th December 2010 so technically for 2010 he was "single", does this make a difference?

Thanks in advance

Jo
x

If his total income was less than $3650 he doesn't have to file at all.

http://london.usembassy.gov/irs/irswho.html

Most file Married filing seperately. I never had to file while in the UK as I never had any income from any sources (my UKC husband gets all the tax credit payments & child benefit and I don't have any UK bank accounts & no interest bearing funds in the US) which makes it very simple....I don't have to file. If I did happen to have to file based on earning or receiving any benefit payments then I would have filed married filing seperately.

If his total income was less than $3650 he doesn't have to file at all.

http://london.usembassy.gov/irs/irswho.html

Most file Married filing seperately. I never had to file while in the UK as I never had any income from any sources (my UKC husband gets all the tax credit payments & child benefit and I don't have any UK bank accounts & no interest bearing funds in the US) which makes it very simple....I don't have to file. If I did happen to have to file based on earning or receiving any benefit payments then I would have filed married filing seperately.

Hubby is under the impression he has to file something because of the FAFSA so it's likely he will file anyway, just unsure whether or not we should be doing it separately or jointly.

When he did work stateside he filled in a W2 and gave it to his employer, he's heard on the grapevine that the guy is going to 1099 even though he withheld from him which in itself would cause problems, he is erring on the side of caution in that a file would be best for him as if this guy plays silly buggers then he hubby will go to the labor board.

It's just whether or not we should do it jointly for the FAFSA or just go singly,so flippin confusing :-/

You don't have to file tax returns in order to file a FAFSA.
 
http://www.fafsa.ed.gov/fotw1112/pdf/PdfFafsa11-12.pdf

Using Your Tax Return

If you are supposed to file a 2010 federal income tax return, we recommend that you complete it before filling out this form. If you have not yet completed your 2010 tax return, you can still submit your FAFSA using best estimates. After you submit your tax return, correct any income or tax information that is different from what you initially submitted on your FAFSA.

If he is not required to file, he doesn't have to file just to submit the FAFSA.

You don't have to file tax returns in order to file a FAFSA.
 
http://www.fafsa.ed.gov/fotw1112/pdf/PdfFafsa11-12.pdf
If he is not required to file, he doesn't have to file just to submit the FAFSA.

Thanks for that Weby, makes more sense now, doesn't look like he will have to file then for the FAFSA, just not sure whether he should anyway in case this guy 1099's him now :|

Finally, we didn't get married until 15th December 2010 so technically for 2010 he was "single", does this make a difference?

Just to clarify on this point, he is not technically single, he is exactly married.  Your status at the end of the year is what matters and on 31st of December he was married.

Any advice on whether it would be better for us to file separately or jointly? I'm confused as to what the pros and cons are?

Dear MissJo,

There is no straightforward answer to the question whether you are better off filing separately or jointly. It depends on a number of factors, such as whether you have plans to become a U.S. resident and eventually apply for U.S. citizenship. Secondly, it depends on what your personal income is and whether it is beneficial to both of you to include your income in his tax return - you will have to include your income if you file jointly. Third, looking forward, when it comes to deducting student loan interest (in case you husband will have a loan to repay), then this deduction is disallowed for married couples filing separately.

Now about filing requirement for FAFSA. Your husband is allowed not to file tax return and still get approved for FAFSA. Just bear in mind that income verification is very common for Federal Aid recipients. In case you receive income verification request from FAFSA, you should be ready to provide the 1099's or other proofs of your husband income.

You may find answers to your questions about foreign spouse filing options here: http://www.taxesforexpats.com/expat-tax-advice/foreign-spouse.html. I would also recommend an article about Federal Student aid and Tax Benefits for US Expats: http://www.taxesforexpats.com/expat-resources/federal-aid-for-expats.html.

Hello. I noticed you said your husband is getting child benefit etc. Presumably this means you have kids. If so, then since your husband is not a US citizen/Green card holder, you are entitled to file as "Head of Household" which is far better than filing as "single" or "married filing separately", but not as good as filing as "married filing jointly". If filing as MFJ you'd have to include both of your incomes, but this may well (depending on how much they are) be worthwhile, as you can get Additional Child Tax Credits (i.e. you'll get a tax refund, which is currently up to $1000 per child per year) plus Making Work Pay of up to $800 per year. Even if you don't legally need to file, you can voluntarily file in order to get the tax credits.

PM me for more info, or email USAtax AT tiekeyaccounts DOT co DOT uk

It does not look like the original post author, Miss Jo has children. However, for other forum readers in a similar situation who do have children, head of household would definitely be a better option than married filing separately.