Hi,
My wife emigrated to the USA on a K1 Visa in September 2019, and we got married shortly thereafter in October 2019. Prior to September 2019, she had worked in the UK from January 2019 until August 2019. Right now we are filing our 2019 tax return jointly. Do I need to report her income earned in the UK? If so, how should I go about it? So far, I only have her P60 document, but that is from April 5 2018 through April 5 2019.
Yes, you need to include her income from calendar year 2019. You will have to allocate her P60 document by 3 months / 12 months (unless there is a bonus in there) and then add to it the monthly gross income she received from April 5 to August 2019.
In TurboTax, you will need to enter this income in the foreign earned income exclusion section. (Enter foreign income in the Search box at the top of the page). When you get to the screen where it asks if you want to see if you qualify for the foreign earned income exclusion, say NO as she does not qualify.
Then you need to enter her foreign tax in the foreign tax credit section of TurboTax to help offset any US taxes. (Enter foreign tax credit in the Search bar at the top of the page)
If you choose to file married filing jointly, you will need to attach a statement to your tax return advising the IRS that you are making the choice to file jointly. You will both need to declare your worldwide income for calendar year 2019. Since you need to add the statement attached to your return, you will need to print and mail your return. You cannot e-file.
You can find a copy of the statement you need to sign on page 9 of Publication 519 under the heading, How to Make the Choice. Publication 519
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I appreciate that @KarenJ2. I have an additional question; Is there a way to do all of this in TurboTax, and then print it for mailing at the end, rather than e-filing? Also, I'm writing the letter now, and I'm wondering if my wife would be considered a non resident alien or a resident alien?
Thanks!