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US Long term capital gains tax for 2018, Married in 2018 to non-residence alien

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  1. #1

    Join Date
    Aug 2018
    Posts
    2

    Question US Long term capital gains tax for 2018, Married in 2018 to non-residence alien

    Hi, I'm in a situation where:

    • I'm a US citizen but live in HK, for many years now, haven't gone back in a few years.
    • Earned some gains from selling shares in a private company (held for more than a year)
    • Married in 2018 soon after to a local HK wife
    • My annual income is well below the foreign tax exclusion threshold, about US$28K. So thus far, I haven't been taxed on that level of income in previous years.
    • Last year's filing status was Single


    For my 2018 taxes, my questions:

    1. Filing Married but Separately, do I have to disclose my foreign wife's income? I believe not, but unsure.
    2. If not, then my total income stays at the US$28K level correct?
    3. In the case, does that mean I won't need to pay Long Term Capital Gains? Since my income still falls within $9,526 to $38,600 range and the rate should be 0%. According to this: https://www.nerdwallet.com/blog/taxe...ins-tax-rates/


    Thanks so much in advance!

  2. #2

    Join Date
    Jul 2012
    Posts
    1,370

    Someone can correct me if I'm wrong.

    No need to report spouse income if filing separately. But remember, even if you do, you still may not have to pay tax. The threshold for joint is like around $200,000 a year.

    For capital gain, just file tax and it will determine if you have to pay or not. I used h&r block and a specialist helped me. I did not have to pay a penny last year.

    You still have to file FBAR and another form if your have an account with money over certain threshold.

    And each state has different law regarding state tax. I emailed my state to confirm that I do not need to pay state tax.

    It really is a pain in the butt every year.

    MABinPengChau likes this.

  3. #3

    Join Date
    Aug 2018
    Posts
    2

    Thanks Grumbler. Good ideas. Im actually more concern with the capital gains tax part as it can get rather sizeable. For sure, Ill find out when I file or if I ask a tax person but just looking for see if anyone here has experienced this and if the range $9,526 to $38,600 applies to me in this situation (NRA wife filing separately and all). If so, then Im clear (given there arent a bunch of other weird stuff with my tax standing overall)

    Thanks again!


  4. #4

    Join Date
    Jul 2012
    Posts
    1,370

    BTW, do your foreign spouse need to file tax at all? All accounts individual. No green card. No US property. All income foreign. Me, filing married but separately.


  5. #5

    Join Date
    Jul 2012
    Posts
    1,370
    https://ttlc.intuit.com/questions/32...-living-abroad

    LOL. This one from TurboTax is very clear. If you do married but filing separately, and your spouse has no US income, then you are done after your filing. Your spouse is not required to file at all. If your spouse has SSN, that's even better since you can e-file.