I’m a US citizen with 0 income whilst my dh is a non-citizen working for an international organization whose employees are exempt from income tax (in his home country and host country). I have a couple of questions (I have searched all over and can’t really find the answers):
I’m confused about how to handle our education grant. Employer pays 75% of a substantial private school tuition fee for our two children. This looks like income and doesn’t take into account how much of a strain on our income that 25% has been. Can I deduct that 25% from our income? I can’t, right? Deductions are only for secondary education, if I’ve understood correctly. Any tips on how to handle this? If our host country wouldn’t consider this income could I exclude it? I mean, I guess the question is: We declare dh’s income according to our tax home’s rules, right? Not the US rules?
Should his income go under Wages, etc. or under untaxed income?
There is a line where one can enter certain allowances for military, clergy, etc. and one of the things it says is “except for military housing allowance” or something to that effect. Because I’m a hopeful thinker, I took this to mean basically “except for housing allowances for your primary residence” a lot like how one doesn’t have to declare the value of one’s primary residence. Does anyone know if this is true or does it really mean military housing only.
I’m unsure of whether to list “child allowance,” “rental subsidy,” and “education grant” under the above-mentioned section for allowances for military, clergy and others or if I should put them under total income (as recommended by the organization for filing US tax returns).
In order to advance to the next section, I had to select “income tax form filed” and then “foreign form” (or whatever it says exactly). But he hasn’t filed a tax return in years. That makes me nervous. Perhaps it’s because I put his income under wages when it should be under untaxed?
To me it sounds like you need help from an US tax professional.
If your husband’s employer pays your housing expenses, then that might be untaxed income for FAFSA.
I don’t know about the education grant.
When I fisrt came to the US I was able to file a joint US tax return with my US citizen H. I think I was declared a resident for tax purposes and was taxed on my wordwide income, but was able to exempt income based on foreign earned income exclusion.
Check into this. If your H can file a joint US return with you, that might filling out FAFSA easier, and if your income qualifies for education credits for college expenses, you will have to file jointly to claim them in the future.
Also if his income is not taxable in either country, it is still considered income for financial aid purposes I would think.
@mommdc Yes, to your last point: his income is definitely income for FA purposes.
I hadn’t thought of the joint return. But I haven’t worked in 15 years, so haven’t filed. I always have this teensy doubt that I’m supposed to be filing anyway…
I found the answer about the education grant in our home country. Definitely income. Oh well. Who said it’s fair, right?
I believe the language you are referring to is for military members and dependents who live in on-base military housing. The value of living in on-base military housing (or any basic military allowance for housing, if received) is not reported on FAFSA as untaxed income. Unless you are living in on-base military housing or a parent is receiving basic military allowance housing, this will not apply to you.
