Tax filing status when spouse not in US

[sundepsony]

Hi,

I am a L1Visa holder, India citizen.

I have joined a job in US on 2nd Oct 2023.

I was not in the US in any of the preview years 2020, 2021, 2022 and only entered US on Sec 28 2023. So I think i dont clear the "substantial presence test" for 2023 year (Jan-Dec).

My wife and son are in India and would probably join me in end of March 2024 or early April 2024.

I have to submit to my employer that would I be filing the W4 as which of the following 3:
1) Single or Married filing seperately
2) Married filing jointly
3) Head of Household

I want to understand that which option I will be able to select and file the final taxes. As far as I understand option 2 (Married filing jointly) is the most tax effective - but I want to understand that considering my case, can I opt that - and if yes then what all documents and evidences I will need to submit for my tax return.

Need kind advise.

[tagteam]

@pk ?

[Critter-3 · Accepted solution]

On the W-4 choose the single/MFS option to be safe and don't enter anything on lines 3 & 4. 

[NCperson · Accepted solution]

@sundepsony - follow @Critter-3 's advise.

That W-4 is simply to determine the withholdings or as I like to call it "the downpayment" against the tax that MAY be owned.

"tax" is only calculated on the tax return.  Then the downpayment is applied against that tax liability and what is left over is either a refund or the Amount Due.

The point is the W-4 withholding is not binding, so be conservative on the W-4 under the circumstance. 

[pk · Accepted solution]

@sundepsony , agreeing with my colleagues  @Critter-3  and @NCperson , on W-4 and the reasonings thereof.  I just wanted to add  for 2023 tax year  you will remain  a Non-Resident Alien ( NRA )  --- unless you seek changes   ( which my view would not help your tax situation ) .  The NRAs  need to file  their  tax return on form 1040-NR  ( not supported by TurboTax  ( you can do it yourself  but also can use  SprinTax,  or Tax Professional  , familiar with international taxing  and US-India Tax treaty.

Note that as a Non-Resident Alien,  you are taxed  on ONLY US sourced / connected income ( not your world income ), must use itemized deduction and you file Married    ( essentially single for tax purposes ).  Also any passive income (US sourced  interest , dividend etc.  ) would be taxed at a flat rate of 30%..

Come Jan of 2024, you should  give your employer a new  W-4  , claiming Married Filing Joint..

Is there more one of us can do for you ?

pk

[sundepsony]

Thanks everyone for the kind advise.

I will follow the guidance and mark as filing single for now (to have right dedcutions) and take care of the filing next year as married+joint.