Which is better?

Filing as married filing separately or married filing jointly? Just curious because it's my first time filing overseas and doing it online on my own. I'll be using my spouse's bank account since I don't have one of my own because of the whole need proof of address when I'm only waiting for my FLR (M) visa.

MFJ usually provides the lower tax - but you need to work it both ways.

MFJ usually provides the lower tax - but you need to work it both ways.

+1

I'm not sure what "work it both ways" means.

I would like to file married, since I think the standard deduction is less. I made somewhere in the neighbourhood of $45-50K from Jan - Oct in the US while I was still living there. I moved here 12 Oct and my employment with the US company I worked for ended on 5 Oct.

The issue is: we were married on May 17th, and we didn't live together until I lived with him in the UK after my employment ended. Technically, from May-Oct we were sharing our money, although his employment and money were in his name in his account in the UK and mine was in my account in my name in the US.

If we file "jointly" we'd be paying taxes on his money and mine despite his never being in the US as a resident. I don't see the point in including him if the standard deduction for singles or mfs is the same.

I usually file using an EZ form and end up with a rebate. I don't own anything and have no dependents.

Does it make more sense to file with him as my dependant?

I have no idea who to ask as my American accountant friends no nothing about the UK and vice versa.

Thanks all!
Mrs.R

The issue is: we were married on May 17th, and we didn't live together until I lived with him in the UK after my employment ended. Technically, from May-Oct we were sharing our money, although his employment and money were in his name in his account in the UK and mine was in my account in my name in the US.

If we file "jointly" we'd be paying taxes on his money and mine despite his never being in the US as a resident. I don't see the point in including him if the standard deduction for singles or mfs is the same.

Go to the IRS website and download the i1040 document (1040 instructions)- it should clear up most questions for you: http://apps.irs.gov/app/picklist/list/formsInstructions.html?value=1040&criteria=formNumber

If you were married at the end of 2012 you have to file as such, regardless of your living situation throughout the year (as stated on the 1040 Instructions)

Your DH has never been employed in the US, which makes him a NonResident Alien.

This means you must file as Married Filing Separately

UNLESS you get a SSN / ITIN and file all his income & assets  (as stated on the 1040 Instructions) and you will need to continue file MFJ every year after this one.

You can not claim an exemption for your spouse if they are a NR Alien (as stated on the 1040 Instructions)



You get way less deductions MFS than both Single & MFJ, which sucks, but unfortunately a reality of being married to an NR alien. 

Thanks so much for this -- it really helps!

I'm just concerned we're going to have to PAY taxes (I've never had to pay before). This would definitely not be the year to start doing that although I don't want to let it get behind like some of the horror stories I've heard.

Do I have to file state taxes?
California was always SO HIGH!

Thanks again -- really this has put my mind at ease!

Mr. R

You file as a part-year resident of California, and pay California tax on only your income from when you where a resident using form 540NR. Providing you don't have any intention of returning to California in the eyes of their tax man

That's the link to the old instructions about this:
https://www.ftb.ca.gov/forms/2011/11_1031.pdf [nofollow]
i can't find the 2012 one

As a married US citizen you have the option to either file Married Jointly or Married Separately.
If your spouse is a NRA you should have a conversation about this and get his/her opinion. The issue with filing jointly is that the NRA will be drawn into the US tax system. There will probably be no US tax due, but the issues of tax credits, exemptions, and foreign accounts will have to be tackled.

Your tax will probably be lower if you elect to file jointly than filing separate.

If you are confused you can hire a dual US/UK qualified adviser for this year only to assist.

Thanks for the help everyone.

If I were to hire a US/UK advisor, where can I find one because I live in Wiltshire county and I know my hubby doesn't like driving long distances...

Thanks for the help everyone.

If I were to hire a US/UK advisor, where can I find one because I live in Wiltshire county and I know my hubby doesn't like driving long distances...

Two firms that specialize in US/UK taxes are

www.britishamericantax.com
www.americantaxreturns.co.uk

As others have pointed out you might get a bigger refund filing jointly rather than separately, but having an NRA as a spouse might also make the return more complicated.

What is your exact situation; do you have earned income or investments in the US or the UK. Also, don't forget UK taxation. If you have foreign income you might have to file a UK self assessment form.

I got my w-2 form for last year because I worked from Jan. 2012 to May 2012 and have federal income tax withheld and I got married Sept. 28th 2012. I agree that it's complicated to have a NRA spouse. If I do a joint return, would they actually include his income because of his occupation is a software developer... I'm just so confused.

You would have to include his income on a joint return. Do yourself a favour: save your money, keep it simple, do married filing separately for your 2012 income and give yourself time next year to decide how you want to file. For most people in this situation who just have straightforward wages it will cost more in the long run with headaches and paying tax advisors than you'd be likely to pay in tax IMO.

You would have to include his income on a joint return. Do yourself a favour: save your money, keep it simple, do married filing separately for your 2012 income and give yourself time next year to decide how you want to file. For most people in this situation who just have straightforward wages it will cost more in the long run with headaches and paying tax advisors than you'd be likely to pay in tax IMO.

I tend to agree. To file jointly with an NRA you have to choose to have the NRA taxed as a US resident and if the NRA has foreign wages and investments it will add a layer of complication and worry. So yes you would have to include your spouses wages and investments income on your joint US tax return. But as a US citizen abroad with an NRA spouse you'll probably have to deal with some of these issues as your financial lives become more intertwined, so money spent on some planning and analysis of your situation might be a good idea.

I agree with those who say file as married filing separately. Never mind that you MIGHT get a bigger refund as MFJ as some others have done. Look at your situation, and forget about what worked best for someone else.

I filed married filing separately/NRA spouse for years. In year 1 it MIGHT have cost me a tad in tax, but what I would have paid an accountant to include my husband's income would have cost far more.

Take the simple route this year, and plan for the following years is the best advice IMHO.