Income tax and spose's Rentry permit is expiring

I

iamfrombombay

New Member
I worked in the USA whole year 2009 whereas my spouse stayed outside USA(India) whole 2009. My spouse's reentry permit is expiring before 15th April. There is very high possibility that she wont come to USA before that date and she may loose her Permanent Residancy.

I need advice from all of you expert here

- we both have Green card
- Spouse is in India on rentry permit
- We are planning to file taxes jointly.
- She made some income ( $3000) in the year during her stay in India which is below taxable limit so she is not filing taxes in India.
- I understand that total income would be my total taxable income minus $3000. It means I will get deduction of 3000 dollars if spouse fills IRS 2555 World income exclusion form.

Big question is am I doing the right thing?
 
Filing the IRS 2555 exclusion is a big no-no if she wants to keep her green card.

And I don't know if you would qualify for it on a joint return unless both spouses were outside the US for the required amount of time (330 days?). You remained in the US, correct?

- I understand that total income would be my total taxable income minus $3000. It means I will get deduction of 3000 dollars if spouse fills IRS 2555 World income exclusion form.
Click to expand...
If you file 2555 you would report your spouse's $3000 and then exclude it. So the effect would be as if your spouse had zero income; total income would be your individual income alone.

But this is not a tax forum. Either seek the help of a tax professional who specializes in this kind of cross-border taxation issues, or forget about the 2555 exclusion and just add the $3000 as a regular joint return.

And buy a ticket back to the US for her to enter before April 15, if she wants to keep her green card.
 
Thanks Jackolantern for quick turnaround.

Yes I was in the USA whole 2009.

She probably wont come before her rentry expiration date and bound to her loose PR. Once I become US Citizen her I can apply her GC again. And exactly for this reason I want to make sure I am filing all the forms correctly now. I am confused when you said " IRS 2555 exclusion is a big no-no if she wants to keep her green card" Shouldn't it be other way around??
 
Somebody who files IRS form 2555 is declaring that they are a bona fide resident of a foreign country. But maintaining the green card requires being a bona fide resident of the US. Filing 2555 for a green card holder is a contradiction that can invite trouble both from the IRS and Immigration.
 
You must log in or register to reply here.
Top