Ask a CPA

A Nonresident Alien is generally taxed only on income from US sources. Nonresident aliens income that is connected with a US business and Capital gains from the sale of US real property interests are subject to tax at regular graduated US rates. Generally investment income from US sources that is not connected to US business is subject to a 30% tax rate. Nonresident aliens are required to file on Form 1040NR. IRS Pub 519 explains how Nonresidents are taxed.

A resident Alien is taxed on Worldwide income from all sources just like a US citizen. The exclusion for foreign earned income may be claimed. A resident alien may claim a foreign tax credit. A resident alien pension from a foreign government is subject to US tax. A resident alien working in the US for a foreign government is not taxed on the wages if the foreign government allows a similar exemption.

The Mortgage Forgiveness Debt Relief Act of 2007 generally allows taxpayers to exclude income from the discharge of debt on their principal residence. Debt reduced through mortgage restructuring, as well as mortgage debt forgiven in connection with a foreclosure, qualifies for this relief. This provision applies to debt forgiven in calendar years 2007 through 2013. Up to $2 million of forgiven debt is eligible for this exclusion ($1 million if (MFS).

NO. Funeral expenses, including the funeral, burial or cremation costs, are deductible on the decedent's federal estate tax return, Form 706.

For the current year, If your filing status is qualifying widow with a dependent child and you are under 65 then your gross income must be at least $16,100. If you are 65 or older than your gross income must be at least $17,320. Gross income does not include social security benefits.

You should file a "joint" tax return and include the deceased income earned and applicable deductions prior to your spouse's death. A joint return is filed by you and the executor or administrator. Do not include income earned after the date of death. This income is considered "income in respect of a decedent" and is taxed to the Estate or beneficiary receiving the income in the year of the receipt. The income must be reported by the Estate (if more than $600) on Form 1041. Speak to your local CPA about the personal and Estate tax returns that you need to file.

You should file a "joint" tax return and include the deceased income earned and applicable deductions prior to your spouse's death. A joint return is filed by you and the executor or administrator. Do not include income earned after the date of death. This income is considered "income in respect of a decedent" and is taxed to the Estate or beneficiary receiving the income in the year of the receipt. The income must be reported by the Estate (if more than $600) on Form 1041. Speak to your local CPA about the personal and Estate tax returns that you need to file.

You must file Form 8857 to claim innocent spouse relief. This must be filed within two years from the date the IRS collection division advised you of a tax liability for the joint return filed by you and your former spouse.

Yes. Form 8379 is the form you can use for Injured Spouse relief to get your portion of a joint tax returns refund. You are an injured spouse if all or part of your share of the overpayment shown on your joint IRS Form 1040 was or is expected to be applied against your spouse’s past due child support or spousal support payments of Federal debts such as student loans. You can file IRS Form 8379 if all 3 of the following conditions are met. You are not required to pay the past due amount. You received and reported income such as wages, taxable interest etc. on a joint return or your main home was in a community property state other than Arizona. (Community property states are CA,ID,LA,NE,NM,TX,WA and WI). You made and reported payments such as Federal income tax withheld from your wages or estimated tax payments or you claimed an earned income credit or other refundable credit on a joint return.

If you are receiving survivor Social Security benefits because your spouse has died, you will not lose the survivor benefits if you remarry as long as you are age 60 or older. If you remarry, you might see your monthly Social Security check increase because you may qualify for higher benefits based on your new spouse's earnings history. You have an option to choose the higher of the two amounts. If you have children who are also receiving benefits, their status will be unaffected by your remarriage.