Vanessa A
Employee Tax Expert

Get your taxes done using TurboTax

one party owns nothing since they're an immigrant.   What is the residency status of both parties?  Is one or both parties a non-resident or are both parties residents for tax purposes with one or both meeting either the green card test or substantial presence test.  If neither of you are considered residents for tax purposes, then you would need to file a 1040-NR which TurboTax does not handle.  This can be filed using Sprintax.com.  If one of you are a resident and the other is not, then if the one that is not would need to file a 1040NR if they are not filing a joint return.  Or, if only one of you are residents, then you can file a joint return and choose to have both parties treated as residents for tax purposes. 

 

 

as single, one who owns nothing, would file standardized where as one who owns property, would file itemized no brainer.  What kind of property is owned?  Rental property or just a home?  When married, you both must take the same deduction, either itemized or standard. 

 

 

now when they're married, the "best" option is to file jointly & itemized. however, it is still about 3-3500 less payback from irs than if the property owner would be single. so the immigrant pays spouse the gap. every year. for the rest of their life. Why is this the best option?  Did you do 2 separate returns and see how it comes out the best?  Yes, if one person itemizes, both must.  But, if income is $100,000 for each party, since state and local income taxes and sales tax are part of the itemized expenses, depending on the state, and if there are any charitable donations, you may turn out better or maybe not.  For example, if you are in a state with an 11% state income tax and earn $100k, that is $11,000 in income tax.  It would be limited to $10,000 under the SALT cap, but the itemized deductions would be $10 instead of $12,950.  

 

This will depend on multiple factors, but you can create a "dummy account" and see how you do together and separately. 

 

 

my question is if how to make this more just? because as it is now, it is absolutely unjust.

should they own property 50:50?  This again will depend on many factors, including the state, what type of property, residency status.  In general, one person owning something like a house should not make that big of a difference on taxes when comparing joint to separate.  To start with the standard deduction is doubled for someone who is married.  Being married would not decrease your itemized expenses. 

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