My wife is on H1B and I am on a H4 visa. I do not have a work permit and I do not work in the USA. However, I do have a business in my own country where I get my income. I have been told by other that I need to file taxes on my income even though I am not permitted to work in the USA. This sounds counter productive and is absurd in my opinion. WHy should I give the IRS 20% of my income just because I am here with my spouse? I do not make any income in the USA and again, I am not permitted to work under any circumstances, so this makes no sense to me at all. Can someone explain this to me beside the present test, that is just because I am here with my spouse they want me to pay taxes. additionally, if I do need to pay taxes, how do I get back credit on my business expenses and taxes I paid in the USA to export my goods. How would you suggest I setup this business to get all the tax credits rather than paying taxes. Should I apply for h4 EAD and open a business and export everything to my business in Belize? my direct email is [email address removed] if you can provide help or advise to help me in this area I will be more than happy to pay you for your service as long as you are versed in this area.
Hello apcsbz
I completely understand your frustration. If you read up on this article https://www.irs.gov/pub/irs-pdf/p519.pdf
it clearly states that you will need to disclose the world wide income, even if you are on a H4. Since you are MFJ for all tax purposes, your income is considered taxable income. Even being a H4 you still have to disclose the interest/dividend income from foreign sources. So I would say you will need to include your business income in your tax return and you get to take the foreign tax credit for the foreign taxes you paid in the foreign country.
As far as entity formation, please refer to a Tax Attorney or a Financial planner to get advise on getting a H4EAD.
Thank you