My spouse came to US in August as a new green card holder he is self employed. How do I input this income into turbotax ? two separate self employment entries.

[eily-cournoyer]

We are married filing jointly, I am a US citizen. He was self employed in the UK until August with a UK address then moved to the US. Should I separate his self employment income (US and UK). I have already completed the foreign income exemptions (he was in the UK for 5 years)

[pk]

@eily-cournoyer 

(a) Don't understand the ref to his five year   foreign employment  point/ statement.

(b)  "He was self employed in the UK until August with a UK address then moved to the US. " -- don't understand the significance of this.

(c) When did he first enter the USA with the GreenCard?  Was this his first entrance in to the USA  during the last three years ?  When was his GreenCard status approved ?

(d) Which country is he a citizen of ?

I will circle back once I hear from you --yes ?

[eily-cournoyer]

Basically I want to know how to input self employment income into turbotax for a spouse with a split year foreign and US income. There does not seem a clean way to do it in the turbotax system as one self employment entity as he had UK address (Jan-Aug 2024) and then a US address (Aug-Dec). 

(a) referenced 5 years as he can claim the foreign income credit as being >330 days in a foreign country within the 12 month period 

(b) just stating had two different addresses Jan to Aug employment in UK with UK address then the remainder of the year in the US

(C) first entered in as resident August, approved in July. Had been to US previously for visit/vacation

(D) Switzerland 

[pk]

@eily-cournoyer 

1. generally, he would be considered a resident for Tax purposes  from the first  day he was in the USA  ( so , absent any other  issues ), it would be the day he entered US with the GreenCard ( admission date ) -- often printed on the GreenCard.

2.  Thus  ( and again absent any other contravening factors ),  he would have been a Non-Resident Alien prior  to this admission date  and therefore  he would be taxed on world income ONLY from the admission date.  So his earlier income is foreign source income and therefore not  taxable to the US.   Thus his self-employed income in the UK may not be pertinent for UDS tax purposes.

3.  From what you said so far , I think  it may be simpler  for you two to  file as married filing separate --- i say this because   (a) while you have a full year residence in the USA and can use the  standard deduction, his  residency start date would be the date of admission and thus  he will have to use  itemized deduction..

  (b)  The way around this would be to request  to be treated as a resident for the whole calendar year , including his foreign income for the whole year  ( eligible for exclusion  under FEIE  under US-UK tax treaty ) and all the complications that this will entail.

Note  also that self-employment income of a US person would require  SECA tax for the year ( unless  he can show a certification of  participation from the UK and therefore no requirement to pay to the US.

Hope this helps.  

Is there more I can do for you ?