# Using AUS Superannuation as assets or re-filing US taxes?



## want2movehome (Jan 31, 2015)

It looks like I might be able to include my super(US citizen) and my wife's super(AUS citizen) to help meet the income/asset requirements but can anyone clarify this? It is obviously in AUD and the requirement is for USD but I believe super can be made liquid within 1 year if we file for financial hardship. 

Also, can I re-file my US taxes to show I had US income? I used the foreign income exclusion since I made much less than $95K but can I re-file, pay US tax on what I earned and possibly meet the income requirement that way?

Thanks for all of the help!


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## BBCWatcher (Dec 28, 2012)

You can include your superannuation accounts, yes. It's up to the National Visa Center whether they'd be considered "liquid without undue hardship," just as with any other assets.

As a separate matter, please note that Australian superannuation accounts have U.S. tax implications for the U.S. citizen (you). It depends how they're structured, but they might require financial reports (FinCEN Form 114, IRS Form 8938, IRS Form 3520/3520-A) and might be treated as PFICs requiring QEF elections.

You cannot lie on a tax return, which is what you might be implying. Don't go there. If you weren't implying that, the IRS doesn't let you flip back and forth between taking the FEIE and not. There are limitations in doing that, and you'll need to read up on those limitations. Paying lots of additional U.S. tax in order to pretend (falsely) you had U.S. employment seems like an awful idea -- I hope that's not what you meant.


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## want2movehome (Jan 31, 2015)

I actually just read another one of your posts regarding the reporting of super accounts to the US (FBAR??) so I will look into that as I was unaware previously. 

We had to hire a lawyer to help us as they said I might be able to re-file my taxes in another way. I didn't see how that would be possible and just thought I'd ask here. 

That's a shame that they can use their discretion to allow a large super fund to count towards the requirement or not. It would be a lot easier to navigate this process if they clearly stated the rules. :-/

Thanks as always for your knowledge BBCWatcher


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## Bevdeforges (Nov 16, 2007)

I think you misunderstand the requirements. You don't need to amend your US tax filings. If you took the FEIE, that only means you don't pay tax on your "earned income" - it still counts as income for evaluating your financial situation. However, what they're going to be looking for on a visa application (or the petition for you to sponsor your family members) is the income you'll have coming in once you arrive in the US. 

The key question is: do you have a job lined up? Or can you get someone (usually a parent or other family member) to sponsor you and your family while you get yourselves settled? Paying tax on income from prior years does not make it "US income." They really want to know that you have a source of income on arrival and going forward from there.
Cheers,
Bev


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## want2movehome (Jan 31, 2015)

That does make sense Bev. I'm not sure what my lawyer was hoping to do but it doesn't sound like it will work. I actually might have a job lined up (60K salary) now and hopefully will have an offer letter this week. My lawyer said that they still might not approve my wife without having the full amount of required assets so we still might be stuck if the super or offer letter don't count.


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## want2movehome (Jan 31, 2015)

A joint sponsor is not possible. My mother was going to sign up but the AOS says my wife can sue for the support and my mother doesn't feel comfortable signing up for that since they are on a fairly limited income in their retirement.


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## BBCWatcher (Dec 28, 2012)

Yet another reason amending your return in that way would be a bad idea is you'd likely owe not only the additional tax but interest and penalties on that additional tax.

Now, if you've made a financial _mistake_ and really should have skipped the FEIE and only taken the Foreign Tax Credit -- and that's quite possible -- then you could check whether you can undo the damage. But the IRS has some rules about whether you can. The FEIE is "sticky" once chosen, basically. This has nothing whatsoever to do with immigration, though.


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## Bevdeforges (Nov 16, 2007)

want2movehome said:


> That does make sense Bev. I'm not sure what my lawyer was hoping to do but it doesn't sound like it will work. I actually might have a job lined up (60K salary) now and hopefully will have an offer letter this week. My lawyer said that they still might not approve my wife without having the full amount of required assets so we still might be stuck if the super or offer letter don't count.


I don't know what the lawyer is trying to pull, but AFAIK you're supposed to have EITHER sufficient income, OR a certain level of assets to see you through. Not both. If you have the job offer in hand (may need confirmation from the employer once you've accepted) and a place to live, then you've fulfilled the requirements.
Cheers,
Bev


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## BBCWatcher (Dec 28, 2012)

And the National Visa Center is forward looking, to the extent they can be anyway. They don't really care very much whether you had $158,000 or $58,000 in _past_ income in a particular year -- and they certainly don't care whether you took the Foreign Earned Income Exclusion or not. They do care what your prospective income is likely to be if you're trying to pass the income test.

As Bev says, if you don't pass the income test to qualify as a sponsor, _then_ they consider household assets only and forget the income. Note that's _household_: you (the sponsor) and the visa applicant, combined. They calculate how much, in their view, of your collective assets can be deemed "liquid, without undue hardship." "Liquid" they further define as assets that can be readily converted to cash within one year. The "undue hardship" part means, for example, sure, theoretically you could kick Granny out of the house you own overseas if you need to raise cash, but that'd likely be an example of "undue hardship," so they might not want to count that asset. If the assets are denominated in a foreign currency they might insert a bit of currency risk into their calculation. Let's call whatever figure they calculate "X." If X is north of $100K (or thereabouts, considering 2015) you should be all set.


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## want2movehome (Jan 31, 2015)

That would be great news Bev if they would approve us with a verified offer letter. I will keep my fingers crossed that I get the job and submit the offer letter if I do. We do have a place to live also which helps. 

BBCWatcher this job should show them that I am able to find work that pays well over the 125% poverty level so I hope that satifys their requirement for earning potential. I guess they could go either way with super and given that it's in AUD, we lose about 25% right off the bat if the conversion were to happen now. I don't know why the AUD couldn't hold out for a few more months and let us transfer money to USD at $0.90+ but that's the way it goes sometimes. 

Thanks again for your help guys!


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## BBCWatcher (Dec 28, 2012)

That's a good reason why you shouldn't move money unless there's a "darn good reason." Undoubtedly you'll need to tap some funds during and shortly after you move, but in my view a lot of people make the mistake of moving _all_ their money across borders as if it were their sock collection. Why? Moving and converting currency means you have transaction costs on all that money, plus you've locked in a particular exchange rate. If you think that rate is unfavorable, then why are you converting all the money _now_?

So try to minimize those costs if you can. If the money is perfectly fine where it is, leave it where it is.

Yes, OK, you'll have some tax and financial reporting requirements in the U.S. on funds in Australia, but that's not a big deal.

I've got some Japanese yen I haven't moved for 5 years. When I visit Japan I spend some of those yen -- that makes perfect sense. But it hasn't yet made sense to move them. Fortunately I haven't needed to tap those funds, and I just haven't been happy with the exchange rate. So I'll let them ride and reassess periodically. They aren't like children who suffer from neglect.


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