AboutGlenn D Schnabel Expertise I can answer most federal individual income tax questions.
I can not provide legal advise.
Experience I have worked for a CPA firm for over 11 years.
I have worked in private as well as government
I have recently been running a tax preparation office, mainly focusing on
individual income taxes
Organizations I have been affiliated with managing condo associations and as a member of a coalition to educate condo owners as to their rights and responsibilities.
Education/Credentials I have my B.S.B.A in Business Administration . Concentration in Accounting
I have gone to yearly tax seminars and have tried to keep up with the
evolving tax changes
Awards and Honors Over my years I have received local awards for contributions to worthy
organizations.
Past/Present Clients This, of course remains confidential
Expert: Glenn D Schnabel Date: 7/19/2008 Subject: Married filing separately for expat with foreign spouse?
Question This question is about 2008 taxes. I'm a US citizen, and my husband is Japanese. He worked in the US from 2002-2008 on a visa. We moved to Japan in March, 2008. I have no income in 2008 so far. He has income from both countries. We also rented-out a condo (in his name) throughout 2008 in California through a property manager. For 2007 we filed a joint return. My question for 2008 is: would our taxes be lower if we file jointly or if we file Married Filing Separately? As I understand it, both of us would be treated as US residents for the whole year and taxed on worldwide income if we file jointly, and my husband would still need to pay taxes to Japan. It seems as if he'd be double taxed on his Japanese income. On a separate note, can we file Married Filing Separately if I don't have an income? Thanks in advance!
Answer Amy,
Thank you for you question.
1) My question for 2008 is: would our taxes be lower if we file jointly or if we file Married Filing Separately?
Filing jointly usually will get a better result.
2) It seems as if he'd be double taxed on his Japanese income
When you report the income from Japan, you can take a credit for taxes paid to another country. Either complete form 1116, or take the tax deduction, whichever gives you a better tax benefit.
3) On a separate note, can we file Married Filing Separately if I don't have an income?
You can always file married filing separately. You would have no income to report and he would have to report all his income from both countries, then have a tax benefit from taking the credit or the deduction. His tax rate would be higher then if he filed married filing jointly.
