Filling seperate taxes

[dhlunar]

I was reviewing the information to prepare to file our 2009 taxes to the IRS. My wife was here on a G visa since she is an employee of an international organization. If we file jointly for 2009 then she will have to claim all money received worldwide and pay tax on it. If we file separately then I just have to report my stuff, and supposedly she won't have to file because all of her income is exempt from income taxes. After reviewing information from the IRS website it appears as if she will still be exempt from the tax after she obtains her immigrant status with the US.

So, if I file my taxes as married by filling separately with the IRS then would that have an effect on her application for permanent residence with USCIS?

 

[Jackolantern]

You may be questioned about it, but it's not a big problem in your case. Just explain that you filed separately due to the tax exemptions applicable to people with G visas working for her organization.

After reviewing information from the IRS website it appears as if she will still be exempt from the tax after she obtains her immigrant status with the US.

After her green card is approved the future income would still be exempt? Do you have a link for that?

 

[Al Southner]

I was reviewing the information to prepare to file our 2009 taxes to the IRS. My wife was here on a G visa since she is an employee of an international organization. If we file jointly for 2009 then she will have to claim all money received worldwide and pay tax on it. If we file separately then I just have to report my stuff, and supposedly she won't have to file because all of her income is exempt from income taxes. After reviewing information from the IRS website it appears as if she will still be exempt from the tax after she obtains her immigrant status with the US.

So, if I file my taxes as married by filling separately with the IRS then would that have an effect on her application for permanent residence with USCIS?

You can file jointly and put zero for her income because her income is exempt from US tax law. I know this personally as I usually file with my wife, but put zero. Don't worry about it... Yes, after her GC, she will still be exempt from US taxes, provided she work for the same or similar international organization, but if she works at the Marriot for a part-time weekend job, that income from the Marriot is subject to US taxation.

http://www.irs.gov/businesses/small/international/article/0,,id=97284,00.html

 

[dhlunar]

Yeah, the link to the IRS is http://www.irs.gov/businesses/small/international/article/0,,id=97284,00.html

She works for one of the organizations that states in its international agreement that started the organization that non-local citizens, non-local subjects, and other non-local nationals will not be taxed.

We did file an I-508 waiver of immunities. I think that an government official will review the law and note if she subject to tax or not. We also filed an I-566 which is a request to change to/from A,G, or NATO status.

 

[Jackolantern]

I see. However, from that link it seems the income would be subject to US taxation after obtaining immigrant status, unless certain other conditions are met.

If you file the waiver provided by section 247(b) of the Immigration and Nationality Act (Immigration Form I-508) to keep your immigrant status, you no longer qualify for the exemption from U.S. tax under U.S. tax law from the date of filing the waiver with the Attorney General.

However, you do not lose the exemption if you file the waiver and meet either of the following conditions:

* You are exempt from U.S. tax by an income tax treaty, consular agreement, or international agreement between the United States and your country, or
* You work for an international organization if the international agreement creating the international organization provides that alien employees are exempt from U.S. income tax. Two international organizations that have such a provision are the International Monetary Fund (IMF) and the International Bank for Reconstruction and Development (World Bank).

 

[Jackolantern]

You can file jointly and put zero for her income because her income is exempt from US tax law. I know this personally as I usually file with my wife, but put zero.

Zero? Wouldn't income from other sources, such as bank account interest be subject to US taxation, even if the employment income from that organization is exempt?

 

[dhlunar]

The bank account interest is small. Also, on our accounts that are interest I am listed as the primary and the 1099 is reported to the IRS under my SSN. So, I just report it on mine.

 

[dhlunar]

I see. However, from that link it seems the income would be subject to US taxation after obtaining immigrant status, unless certain other conditions are met.

She meets the second requirement of the waiver. I checked the organizations Article of Agreements and it clearly states that NON-local citizens will not be taxed.

 

[Al Southner]

Zero? Wouldn't income from other sources, such as bank account interest be subject to US taxation, even if the employment income from that organization is exempt?

Yes, zero is she should put on the income tax. All interested earned in banking activities can be listed as income earned by the spouse filing taxes, usually banks will send you this tax statement in January or so or you have to track it down. My wife usually gets the bank statement for all interested earned.

 

[Al Southner]

She meets the second requirement of the waiver. I checked the organizations Article of Agreements and it clearly states that NON-local citizens will not be taxed. We also filed an I-566 which is a request to change to/from A,G, or NATO status.

You don't have to file the I-566 form, i never filed it and my immigration process went smooth. Secondly, she will retain the income exemption for all income earned as a results of her employment with that international organization. She can request a memo from her job on this issue, which you can then attach to the income tax return when you file. On the day of the interview, assuming you are approved, the IO will ask her to complete another form which I forget its name or number, basically asking her to relinquish all her diplomatic privileges which results from her status as a G4 visa holder.

 

[Jackolantern]

You don't have to file the I-566 form, i never filed it and my immigration process went smooth.

Maybe you were lucky that they ignored the absence of I-566 (given that less than 0.1% of filers are A/G/NATO, it is likely that the officers handling the case were unaware of the need for it), or you did consular processing instead of AOS. The I-566 instructions don't seem to make it optional for somebody filing for adjustment of status coming from G status.

Anyway, there is no fee for the I-566, so it's better to file it just to avoid delays that may occur if they want it and it's not there.