Tax thoughts

[zebrazeb]

Hello everyone...

I do not remember anyone posting questions about taxes. And since I AM an Accountant, the topic is interesting to me in more then one way.

I am curious as to what people think about the tax issues associated with marring someone from another country. I would enjoy hearing some general thoughts, as I am sure I could never come up with enough questions to cover the tax laws.

I know that after I did my taxes this year (yes I can file my own taxes as well as filing my own I-129F), I wondered what kind of taxes I would pay, had I been married. Well I ran the general numbers, and was amazed how how much LESS I would have paid in Taxes. Maybe all that money spent on trips will be more of an investment in less taxes. Just something to consider, and I will not even charge you for that bit of Financial Planning Advice.  

So now, I have some general questions about taxes. Yes I am asking these questions without doing what I would call normal research of the tax codes. But, I am just looking for some general information at this point, as I am smart enough to know that these message boards are GREAT places to share information, stories, and OPINIONS, but never take things read here too serious...

So know for a few thoughts/questions...

1. When I "ran" the comparisons of simply using single versus married, I was amazed at what I could reduce my taxes by. Has anyone else brought this comparison into consideration when going through this marraige abroad process?

2. Does anyone know of any legal deductions associated with this process?? A few that "potentially" come to mind might be: 1. job search expenses. 2. Educational expenses for you or your spouse (ie english classes). 3. Moving expenses.

3. What about potential assets she may have in her country that you might have to consider. (ie sell of asstes at capital gains, or rental income for apartment she may own and rent in the future). I know that topic gets a bit in depth, but it IS serious enough to think about. Maybe the issue here is what assets or gains on sale of asstes would have to be declared on American taxes?

Ok that it is for now. But if anyone wants to add anything else to consider, please do...

Dennis

[MarkInTx]

... in response to Tax thoughts, posted by zebrazeb on Apr 15, 2002

OK, accountant types... question...

Could you deduct your RW wife and kid if they are not yet citizens?

On my tax form, I needed to have a SS number for my daughter.

An RW would not have that. At what point could you actually claim her a a dependant? Does she have to have the full K-1 approval, and a green card?

[BrianN]

... in response to Dependants -- A Question, posted by MarkInTx on Apr 19, 2002

and they don't have to be citizens to qualify for deductions, only they need an ssn and you have to provide six months or more of their support for the year to qualify, unless, you got married in that year, which gives you the bonus...

Either way, (and I'm not even there yet, but have been in the past so my brain's a little rusty), the lady and her kid(s), should get ssn's right away.  Then you're married, and then you claim the appropriate deductions on the 1040....

Now, if she gets here on december 30th, you get married on december 31st, and you don't file taxes until april, then it still doesn't matter.  That's plenty enough time to get ssn's for all concerned; (the usg just loves giving away those ssn things - they're like tracking numbers, and they want the money from employment deductions big time).

SS and the IRS ain't never the problem... (they always love you)... it's the stinkin ins that's a pos to deal with.

[MarkInTx]

... in response to Yes they will have ssn's..., posted by BrianN on Apr 19, 2002

Shows how much I know...

I thought a foreigner couldn't get an SSN because they weren't entitled to Social Security benefits...

I was thinking that the lady (and any child) would have to get a TIN (Tax Identification Number) which was used in place of an SSN...

Did I read your post correctly... you are saying that you can claim your wife as a dependant no matter how long you have been married in the year?

[Rags]

... in response to SSN's, posted by MarkInTx on Apr 20, 2002

When your fiancee goes through Immigration at the POE she should get a "work authorized" stamp on her I-94 (good for 90 days). With this she can get a SS# in 2-4 weeks. Her child CANNOT get a SS# until after the AOS. You must file a W-7 form and get a Taxpayer Identification Number. This is suppose to take 6-8 weeks but I have been waiting for 3 months now.

[BrianN]

... in response to SSN's, posted by MarkInTx on Apr 20, 2002

The below applies to the "wife" for filing and ssn purposes, however, I believe the child will have to receive a ITIN only:  

http://www.irs.gov/taxtopics/display/0,,i1%3D56%26genericId%3D16298,00.html

Regarding filing a 1040:
Non-Resident Spouse Treated as a Citizen
http://www.irs.gov/faqs/display/0,,i1%3D54%26genericId%3D11767,00.html

... and from www.ssa.gov - Search terms: married visa

My immigration document shows K-1. How do I get a work Social Security number?

 Question
 I have come to the U.S. to marry my boyfriend. My immigration document shows “K-1.” How do I get a Social Security number so I can work?

 Answer
 The “K-1” symbol on your immigration document means you are the fiancé of a U.S. citizen and are authorized to work.

To Apply for a Social Security Number--

Download the form to apply for a Social Security card....

[ChuckRM]

... in response to Tax thoughts, posted by zebrazeb on Apr 15, 2002

I did do a few quick calculations last year, before my wife came over here.  I figured out that just by taking the standard deductions, if we married my tax savings would exceed her annual salary in Russia.  I believe that I pointed this out to her at one time.  This is more a comment on how little many Russians earn than how much the U.S. tax code helps married people.

My wife didn't have any assets, so we didn't have to worry about any of the capital gains or losses stuff.

The INS took a lot of the money back.  I figure that I have given them nearly $900 in fees for my wife and her son.  And we are not done yet.

The federal government giveth with one hand and taketh away with the other.  

[BubbaGump]

... in response to Tax thoughts, posted by zebrazeb on Apr 15, 2002

My estimate was that a wife would save me almost $6500 in federal taxes.  I am almost at the point for the next rate increase, so getting a wife would bump that point of the rate increase up.  Otherwise, I would have to max out my 401K contribution and avoid capital gains to avoid hitting the next big rate jump.  I did compute that there is a limit to how much a wife could save me if my income were very high.  The very high brackets hit at the same level whether you're married or single.  I also determined I need to alter my behavior and take taxes into strong consideration in the future.

[BrianN]

... in response to I did run the numbers, posted by BubbaGump on Apr 17, 2002

[BubbaGump]

... in response to With numbers like that, can I have your ..., posted by BrianN on Apr 17, 2002

Well, high paying crappy jobs are better than low paying crappy jobs.  I want to just quit and be that guy shoving a shopping cart in your face at Wal Mart.

[RickM]

... in response to Tax thoughts, posted by zebrazeb on Apr 15, 2002

always been the way I go.Self-employed in 2 seperate businesses,the last thing I look for is the "red-flag' that will earn me an audit.
I agree with you that this year,being married,things certainly changed toward my favor by comparison to years before filing single.
I never tempt fate and look for things like write-offs for things like trips to other countries in the name of bussiness.I certainly preferr to appear the "simple filer" and I suppose it all depends on what bracket your in...
Here,we still need to work for a living daily )

[wsbill]

... in response to The Simpler The Better Has..., posted by RickM on Apr 16, 2002

We are taxed to death.  Taxed on what we make, then what we buy.  Property taxes, etc...

Then you look at how they spend it.  Looks like one big crap shoot.

One flat tax across the board based on your wage, for state and federal.  Get rid of all the smoke and mirror tricks.

[Oscar]

... in response to Re: We definately need a better system, posted by wsbill on Apr 16, 2002

My accountant told me that after I bring my girl and her son here, and perhaps get one rental property along with the house I own now and live in, that I will basically be paying almost NO tax at all!  And after we have another child together, for sure no tax!  Married is DEFINITELY the way to go!  
Sure there are more expenses, but I would rather make a wife and family happy than the IRS with my money!

[RickM]

... in response to Re: We definately need a better system, posted by wsbill on Apr 16, 2002

nt

[BrianN]

... in response to Amen To Flat Tax...And None on Crops ..., posted by RickM on Apr 16, 2002

Might solve some of the problem with farm subsidies for growing nothin'....