Tax question...

[Hoda]

Family,

If your lady had any assets in say "Citibank" of S.A. Does anybody have any idea when her assets would be taxable by Uncle Sam? Also, if your lady doesn't work before the end of the fiscal year. Can she be listed as a dependent on your return? Let's take the scenario's that she does & doesn't have a social security card.

Thanks in advance...Hoda

[briloop]

... in response to Tax question..., posted by Hoda on Nov 30, 2001

I am a CPA, and I haven't practiced tax in over two years, so, my knowledge of the Internal Revenue Code is somewhat rusty.  But, let me take a shot at your questions.

My hunch on the taxable assets thing is that the money is not considered income, however the money has to be declared upon entry into the U.S.  I recommend that you consult an attorney on this.

As far as claiming your wife on your tax return:  I assume that she is here in the U.S. and living with you.  It doesn't matter if she worked or not - you can file a joint return.  You will need to have a SSN for her to file the return.  IRS would probably reject her as a spouse on your return unless she has a SSN.  If she doesn't have one now, run out to the SSA and get one for her ASAP.  

If she is not in the U.S.:  I remember having a client who was in the following situation.  He was married, his wife lived in India, and she was neither a legal resident nor a citizen of the U.S.  I remember seeing something about this in the IRC that would not permit him to file a joint U.S. return.  If you are in the same situation as my former client, have a CPA or an enrolled agent look this one up in the Internal Revenue Code.

[Hoda]

... in response to Re: Tax question..., posted by briloop on Nov 30, 2001

n/t

[Hoda]

... in response to Tax question..., posted by Hoda on Nov 30, 2001

n/t

[Hoda]

... in response to Tax question..., posted by Hoda on Nov 30, 2001

n/t

[JeffA]

... in response to Tax question..., posted by Hoda on Nov 30, 2001

Hoda, the key is the SSN-- if you have one you can claim her, regardless of her working.
In terms of money in Citibank SA, you can always pull it out down there, buy dollars with it, and bring it back. There's the $10,000 limit on reporting, though-- if you bring back $10k or more, you have to tell customs. It's legal, but they can confiscate it if you don't report it.

Not a problem, my friend...
Jeff

[Red Clay]

... in response to Re: Tax question..., posted by JeffA on Nov 30, 2001

test

[JeffA]

... in response to Re: Tax question..., posted by JeffA on Nov 30, 2001

Sorry about poor word usage, Hoda, you can file jointly, but she's not a dependent-- El Diablo's correct-- but didn't the congress end the 'marriage penalty'? should be worth more on a standard deduction...I'm not sure, exactly.

[Jeff S]

... in response to Re: Re: Tax question..., posted by JeffA on Nov 30, 2001

The marriage penalty is only for couples where both spouses work. It had to do with the combined income kicking the couple into a higher percentage bracket than if they weren't married and filed separately. It has been repealed but is one of those things that takes years before anyone actually ever sees a nickel.
-- Jeff S.

[El Diablo]

... in response to Tax question..., posted by Hoda on Nov 30, 2001


Hi HODA,

You can NEVER claim a spouse as a dependent.  However if you file a joint return, both spouses can claim personal exemptions which deduct 2900 each from the gross income of the return.

For most cases, your married status is determined on the last day of the year.  If you get married on January 1 2002 for instance, for tax year 2001 you can not file a joint return and include her exemption.

In the cases where you are unmarried by year end, you can not claim your fiancee in Colombia or here on a K1 as a dependent.  The I.R.S. has a series of five tests which all must be met in order to claim a dependency and they would not be met here.

El Diablo

[Pete E]

... in response to Tax question..., posted by Hoda on Nov 30, 2001

Howard,
The US government won't tax her assets but you might have trouble getting them out of Colombia.They hate Capital leaving the country.I would spend her money in Colombia instead of your money from here.I'm sure you could use it up for the wedding and honeymoon.
Yes,she can be a deduction on your income tax,even if she does not work.For me I also got to file a married return,which helped also.In your case you are probably already head of household,so no difference.I did have to include a social security number for her and her son on the return.My accountant filed the return electronically and it got bounced back because my step sons name was mispelled and not the same as on his SS card.You can get the SS card in about 10 days after your wife arrives if you use the spousal visa.They will order it with only her spousal visa.In our case the Embassy in Bogota wrote over a number in my wifes visa and SS wouldn't give us a SS card untill she got her green card,about 2 months later.Your wife is a permanent resident(although temporary for 2 years).With the SS card she can work if she wants.
I'm not sure when the woman can get an SS card on a fiancee visa,I would immagine it would be after the adjustment of status.Also is there a way to claim her on the return if she doesn't have a SS number?Seems like no,they want it.You could delay filing untill 10/15(no problem untill after this date,just some minor interest)while working on the card or maybe file an ammended return later including her.
In your case this won't be an issue,no problem with the spousal visa.

Pete

[Hoda]

... in response to Re: Tax question..., posted by Pete E on Nov 30, 2001


California is gonna be the first stop of our "Tour of America". So let our board family members know. Good looking out bro....

Peace...Hoda