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Discussion Forum Index --> Advanced Tax Questions --> Resident Alien Filing Status
Discussion Forum Index --> Tax Questions --> Resident Alien Filing Status
MIG999 (talk|edits) said:
| 2 February 2008
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| I looked at previous threads and could not find anything quite like this. I have a husband and wife both of whom are Canadian citizens. He is working for the Canadian embassy, she is working for a U.S. company. Both were in US all of 2007. I believe his income is exempt from U.S. income tax but hers obviously will not be exempt. Does the exemption of his income mean they cannot file jointly as resident aliens? Could she file as head of household (they have children who were in US all of 2007)?
Thanks for any guidance. I found the IRS publications in this area not terribly helpful.
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Sandysea (talk|edits) said:
| 2 February 2008
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| I would say they can file MFJ even if his income is excluded from US taxes. They are both residents and he will need to advise that his salary is not taxable in the US due to the exemption, but they must both be taxed on worldwide income...I would assume that worldwide income is "taxable income"....
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Smktax (talk|edits) said:
| 2 February 2008
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| You need to review the visa status of both the husband and wife and I would also look at the treaty. Under a government official visa, the husband may not be treated as present in the U.S. for the substantial presence test. This would mean that he is treated as a nonresident alien. Nonresident aliens are not allowed to file joint tax returns. If the wife is here under a visa as a spouse of a government official, then she also may be considered a nonresident alien. However, if she is working in the U.S., then this may imply that she has a work visa in the U.S. (or that she is working here illegally). If either the husband or the wife are treated as nonresident aliens, then a joint tax return cannot be filed.
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Taxtips (talk|edits) said:
| 3 February 2008
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| The husband would appear to be a nonresident because of his exempt status. Thus, they would need to make a 6013(g) election if they want to file a joint return. This would have no effect on the Sec. 893 exemption for his diplomatic wages.
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Sandysea (talk|edits) said:
| 3 February 2008
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| Right tax....they can elect to have the MFJ and still and all if his wages are exempt for the wages, they will get the benefits of having the MFJ return.....
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Guya (talk|edits) said:
| 3 February 2008
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| Don't forget that as Canadians they may well have to file 3520s for their RRSPs. The Section 893 exemption has no bearing on this but the penlaties for failure to file are horrid.
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MIG999 (talk|edits) said:
| 4 February 2008
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| Thanks, each of you. I will look at the visa status of both H and W. I am examining the treaty and other cites you have provided.
Thanks, Again!
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LKfromCANADA (talk|edits) said:
| 4 February 2008
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| They do not need to File 3520's for RRSP. This has been replaced by Form 8891.
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