Me and my spouse are resident alien so we filled 1040 via turbotax and got aproved. We didn't declare foreign income. Do we have to amend the form to include it?

[ramironuria]

we have E2 visa issued in june/5/ 2017, passport from Spain
we've been here the whole 2017 with some ins and outs of the country, and visited few times in 2016 too, that makes more than 183 days. So as far as I know, for tax purposes, we are resident alien.
I don't have any income for 2017.
My spouse got income in Spain until September and then in the US for the rest of the year 2017
foreign earning type is the rental of a home we own in Spain and we had a tenant for the whole year plus 9 months of paycheck from the previous employer.
we didn't pay taxes in Spain yet since it's not done until June.

Should we wait until pay taxes in Spain and then amend 1040 including foreign income and tax payed overseas ?

or should we amend 1040 including foreign earning as soon as posible before time is up for this year tax return?

[pk · Accepted solution]

Resident alien or  Non-resident alien ---  for substantial presence test you need to  satisfy 183 days total in this country counting as follows:  all days in 2017 ( current year) + 1/3rd of all days present in 2016  " 1/6th of all days present  in 2015.

Once you reach this 183 days, for the rest of the year you are treated as resident for tax purposes  i.e. USA  taxes you on world income. Prior to this day  you are treated as Non-Resident Alien i.e you are  taxed only on US sourced / connected income.

You can also choose ( first year choice ) to be treated as a resident alien for the whole year by filing a  form 1040 ( your return ) and including a statement by both of you  saying that you wish to be tretaed as a resident alien and therefore  allow US to tax your joint world income.  In this scenario any taxes  paid for foreign  sourced income may be eligible for  foreign tax credit ( or tax deduction --- probably not available after 2017  tax year due to new tax law )

Ideally one should wait to amend an already filed return when the foreign tax liabilities have been settled / paid -- because  any changes   in the final settlement may require another amended return.

Also note as a resident-alien ( even for tax purposes ) you may be subject to FBAR ( Treasury form 114 -- triggered by aggragate  bank accounts holdings -- even if only signature authority-- of US$10,000 or more ) and FATCA ( IRS form 8938 )