# Green card waiting time / Tax return



## Mike Capcom (Sep 18, 2013)

Couple of questions please.

I'm moving to the US early next year and my American wife is just about to file the I 130.

I've read a lot about the waiting time for a green card (I'm retired and won't be working again) so can anyone provide some indication of what that wait might be?

I've also seen some comments regarding filing a U.S Tax return. Is that required if I don't earn an income (other than Australian bank interest)?

Thanks Mike


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## Davis1 (Feb 20, 2009)

A spousal visa can take up to a year 

spousal visa 
Immigrant Visa for a Spouse of a U.S. Citizen (IR1 or CR1)


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## Mike Capcom (Sep 18, 2013)

Davis1 said:


> A spousal visa can take up to a year
> 
> spousal visa
> Immigrant Visa for a Spouse of a U.S. Citizen (IR1 or CR1)


Thank you ....

This is what we have ready for the I130 .... is there anything missing anyone can think of?

1.	Payment for submitting form I-130
2.	Form I-130 filled out by petitioner
3.	Form G-325A, all four pages, 2 copies; one filled out by petitioner, one by the beneficiary
4.	Passport size photos, 1 of petitioner, 1 of beneficiary, attached to the relevant G-325A forms
5.	Certified copy of passport of both petitioner and beneficiary
6.	Certified copy of birth certificates of both petitioner and beneficiary
7.	Certified copy of Deed Poll for change in beneficiary’s middle name
8.	Certified copy of marriage certificate for the marriage between petitioner and beneficiary
9.	Certified copies of divorce papers from previous marriages by both petitioner (2) and beneficiary (1)
10.	Certified copy of additional forms of ID of the beneficiary (Medicare card, license, bank card)
11.	Certified copy petitioner’s bank card, Medicare card, back of private insurance card (showing names of petitioner and beneficiary) as evidence of joint finances
12.	Third party affidavit as to the validity of marriage between petitioner and beneficiary
13.	Certified copy of bill with initials and surname of both petitioner and beneficiary
14.	Letter showing petitioner as recipient of beneficiary’s retirement fund in case of death.

Thanks again

Mike


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## BBCWatcher (Dec 28, 2012)

I don't think the copies of those supporting documents need to be certified, but if you want to that's perfectly fine. You also seem to be well past the minimum documentary requirements demonstrating that you're married, so if one of those documents doesn't end up being available to submit you should still be just fine.

Regarding your tax question, you and your spouse will almost certainly want to file a joint U.S. tax return since that's almost always a better financial deal for your household. Consequently you would report your worldwide income, including Australian bank interest (and the foreign tax paid on that interest as a foreign tax credit) -- as you must anyway if you meet the filing threshold. You both will also need to file "FBAR" (FinCEN Form 114) and/or "FATCA" (IRS Form 8938) forms annually to report your non-U.S. financial accounts. (I assume you at least meet at least the FinCEN Form 114 filing threshold even if you don't meet the IRS's tax filing threshold if you were to file separately instead of jointly.)

If your wife qualifies for U.S. Social Security retirement benefits (when the time comes) then you should qualify for spousal benefits. That's true worldwide, but I thought I'd mention that. Do also look into U.S. medical coverage including U.S. Medicare eligibility.


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## Mike Capcom (Sep 18, 2013)

BBCWatcher said:


> I don't think the copies of those supporting documents need to be certified, but if you want to that's perfectly fine. You also seem to be well past the minimum documentary requirements demonstrating that you're married, so if one of those documents doesn't end up being available to submit you should still be just fine.
> 
> Regarding your tax question, you and your spouse will almost certainly want to file a joint U.S. tax return since that's almost always a better financial deal for your household. Consequently you would report your worldwide income, including Australian bank interest (and the foreign tax paid on that interest as a foreign tax credit) -- as you must anyway if you meet the filing threshold. You both will also need to file "FBAR" (FinCEN Form 114) and/or "FATCA" (IRS Form 8938) forms annually to report your non-U.S. financial accounts. (I assume you at least meet at least the FinCEN Form 114 filing threshold even if you don't meet the IRS's tax filing threshold if you were to file separately instead of jointly.)
> 
> If your wife qualifies for U.S. Social Security retirement benefits (when the time comes) then you should qualify for spousal benefits. That's true worldwide, but I thought I'd mention that. Do also look into U.S. medical coverage including U.S. Medicare eligibility.


Many thanks again BBC 

Yep, all the docs have been certified ... still have to do the national police check bit though. I was thinking they might want to see bank statements as well.

As for the medical coverage, you've been great with that info in the past so it'll come down to PPACA while I wait for a green card ... which I hope won't be long. Maybe inside a couple of months?

As for the bank question (yep I know it's dumb) it was whether I pay any tax on my savings outside of tax on the interest earned? I believe I'll pay some tax on funds derived from my superannuation account but all the other money to which I have access will be in the bank. I've finished work and my wife MAY work part time.

Thanks yet again Mike


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## BBCWatcher (Dec 28, 2012)

Filing jointly there's a fairly meaty set of personal exemptions and standard deductions. The U.S. tax code is also fairly kind when there's a bit of earned income in the joint filing household since that opens up the possibility of qualifying for tax credits such as the Earned Income Tax Credit. And you should receive full foreign tax credit for any Australian income tax you owe/pay on Australian source income, plus any applicable treaty benefits (since the U.S. and Australia have a tax treaty). So I tend to think you'll be in pretty good shape overall based on the broad outlines of your questions.

That said, yes, it is possible you could owe some U.S. income tax on your Australian source income. The absolute worst case is that you'd pay the difference between the U.S. tax rate and the Australian tax rate. For example, I think Australian bank interest is taxed at a flat 10% rate. The U.S. treats ordinary bank interest as ordinary income, so it's generally taxed at whatever your normal U.S. marginal tax rate is for that income less the Australian tax paid. But, as mentioned, there are possibilities that your marginal and/or net effective U.S. income tax rate will be zero or even negative.

The U.S. has no wealth tax (excluding gift, inheritance, and local property taxes that the U.S. does have). In theory you could have AUS$1 billion in a bank account, receive AUS$1 per year in interest on that (poor performing) account, and owe zero U.S. income tax on those funds. The account would still be FBAR-reportable, though, but that's just a report.


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## Mike Capcom (Sep 18, 2013)

BBCWatcher said:


> Filing jointly there's a fairly meaty set of personal exemptions and standard deductions. The U.S. tax code is also fairly kind when there's a bit of earned income in the joint filing household since that opens up the possibility of qualifying for tax credits such as the Earned Income Tax Credit. And you should receive full foreign tax credit for any Australian income tax you owe/pay on Australian source income, plus any applicable treaty benefits (since the U.S. and Australia have a tax treaty). So I tend to think you'll be in pretty good shape overall based on the broad outlines of your questions.
> 
> That said, yes, it is possible you could owe some U.S. income tax on your Australian source income. The absolute worst case is that you'd pay the difference between the U.S. tax rate and the Australian tax rate. For example, I think Australian bank interest is taxed at a flat 10% rate. The U.S. treats ordinary bank interest as ordinary income, so it's generally taxed at whatever your normal U.S. marginal tax rate is for that income less the Australian tax paid. But, as mentioned, there are possibilities that your marginal and/or net effective U.S. income tax rate will be zero or even negative.
> 
> The U.S. has no wealth tax (excluding gift, inheritance, and local property taxes that the U.S. does have). In theory you could have AUS$1 billion in a bank account, receive AUS$1 per year in interest on that (poor performing) account, and owe zero U.S. income tax on those funds. The account would still be FBAR-reportable, though, but that's just a report.


Exactly as I thought ... yes the OZ super might attract a tax (if I happen to raid it as a source of income outside of my bank savings which is unlikely) but I'm assuming if it grows in value with share market increases and I don't touch it, then I won't have pay tax. I'm not quite clear on that.

Great advice as always  Mike


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## BBCWatcher (Dec 28, 2012)

Mike, if possible U.S. "delta" taxation of your interest income concerns you greatly, you could move some portion of your savings into a U.S. tax free municipal bond fund. (Vanguard has good, low cost options in that category.) Whether that's wise or not, taking all factors into consideration, is unclear. _Generally_ the tax advantages of such funds are largely lost on households that don't have high marginal U.S. income tax rates. Obviously it's not a smart thing to do if your household's U.S. income tax rate is zero or negative.

You've also got currency exchange costs to bear any time you move funds. There might be some merit to increasing the U.S. dollarization of your assets since your lifestyle will soon be U.S. dollar-based, but that goal is not _uniquely_ achievable in the United States. (Australian financial companies know what U.S. dollars are, too.)

Another option (in combination or separately), if you're willing to park money for at least 5 years and assuming your wife earns enough, is to (both) contribute to Roth IRAs, one account for each of you. (A working spouse can make contributions for a non-working spouse.) Those are U.S. tax-advantaged retirement accounts. As long as one of you is working and earning sufficient income both spouses can add to their accounts. Contributions come from after-tax (earned) income, but qualified withdrawals (including gains) are completely U.S. tax free. You should not place those funds in anything already tax-advantaged (like municipal bond funds) but instead focus those funds on the highest yielding parts of your total savings consistent with your overall risk level. That way the tax advantages are maximized. I like Vanguard here, too -- for example one of their low cost international stock index funds.

If you move back to Australia (or anywhere else) the other country may or may not respect the tax-free treatment of those U.S. Roth accounts, so just watch that.


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## BBCWatcher (Dec 28, 2012)

Mike Capcom said:


> Exactly as I thought ... yes the OZ super might attract a tax (if I happen to raid it as a source of income outside of my bank savings which is unlikely) but I'm assuming if it grows in value with share market increases and I don't touch it, then I won't have pay tax. I'm not quite clear on that.


First check the U.S.-Australia tax treaty to see what it says about such accounts.

If the treaty is silent, it depends on how you've invested the funds. If they're in what the IRS would consider PFICs -- non-U.S. mutual funds or unit trusts, as examples -- then you'll probably need to make what are called QEF "mark to market" elections every year. In other words, yes, you'd pay U.S. income tax on the net gains each year, realized or unrealized, if they're PFICs.

....But that could be perfectly OK as the non-working spouse assuming your total worldwide income (including these QEF elections) is modest. That's because you're contributing a personal exemption and standard deduction (at least) to your household's joint U.S. tax filing. If your total worldwide income slides under those figures, no problem -- no tax owed on those QEFs. Even if you're somewhat above it still may not be a problem if filing jointly helps your household (really your wife) qualify for more tax credits. Indeed, it could be really, really good if you always slide under the exemption/deduction/credit thresholds while taking QEFs because then your future superannuation withdrawals would also probably be U.S. tax free (because the U.S. cost basis will have been adjusted along the way).

How much are we talking about here, roughly roughly, and if you don't mind me asking? How many private aircraft do you own?


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## Mike Capcom (Sep 18, 2013)

BBCWatcher said:


> Mike, if possible U.S. "delta" taxation of your interest income concerns you greatly, you could move some portion of your savings into a U.S. tax free municipal bond fund. (Vanguard has good, low cost options in that category.) Whether that's wise or not, taking all factors into consideration, is unclear. _Generally_ the tax advantages of such funds are largely lost on households that don't have high marginal U.S. income tax rates. Obviously it's not a smart thing to do if your household's U.S. income tax rate is zero or negative.
> 
> You've also got currency exchange costs to bear any time you move funds. There might be some merit to increasing the U.S. dollarization of your assets since your lifestyle will soon be U.S. dollar-based, but that goal is not _uniquely_ achievable in the United States. (Australian financial companies know what U.S. dollars are, too.)
> 
> ...


Gee, you're generous with your time and attention to detail. Take some loud applause from me 

You're way too kind in leading me thru this maze !!

Mike


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## Mike Capcom (Sep 18, 2013)

Mike Capcom said:


> Gee, you're generous with your time and attention to detail. Take some loud applause from me
> 
> You're way too kind in leading me thru this maze !!
> 
> Mike


One other question

By the time I sell my house (hopefully next 2 months) my bank account will be down to around $15k Thereafter it'll be $800,000 plus

Does that make a difference with regard to the consulate interview if they want to know financial records?

Thanks Mike


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## Bevdeforges (Nov 16, 2007)

Mike, you might want to take a look over on the Expat Tax section of the forums here: Expat Tax - Expat Forum For People Moving Overseas And Living Abroad

In recent months, there have been several discussions of the US tax implications of Aussie Superannuation funds. It's apparently not a cut and dried issue, but you're definitely not the only retired Aussie who will be dealing with this in the US. <g>
Cheers,
Bev


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## Mike Capcom (Sep 18, 2013)

Bevdeforges said:


> Mike, you might want to take a look over on the Expat Tax section of the forums here: Expat Tax - Expat Forum For People Moving Overseas And Living Abroad
> 
> In recent months, there have been several discussions of the US tax implications of Aussie Superannuation funds. It's apparently not a cut and dried issue, but you're definitely not the only retired Aussie who will be dealing with this in the US. <g>
> Cheers,
> Bev


Thanks Bev

I just want them to know I'm not destitute if the interview takes place between house sale and settlement


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## BBCWatcher (Dec 28, 2012)

That'd only really make a difference if at least three things are simultaneously true. (1) Your wife cannot demonstrate adequate income or savings on her own for visa sponsorship purposes. (2) You thus need to "graduate" to the asset test to qualify. (But in that case your superannuation fund counts anyway.) (3) The National Visa Center doesn't take into account, even partially, the value of your home.

In short, no, I don't think the timing of your home sale will matter at all for visa purposes. It could very well matter for U.S. tax purposes, however, since sometimes capital gains (net of costs) are partially U.S. taxable (and with credit for foreign capital gains tax) unless a tax treaty provides relief. Do look into that issue very carefully. The IRS publishes a fairly readable guide on home sales (Publication 523) that I'd recommend reading.


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## Mike Capcom (Sep 18, 2013)

BBCWatcher said:


> First check the U.S.-Australia tax treaty to see what it says about such accounts.
> 
> If the treaty is silent, it depends on how you've invested the funds. If they're in what the IRS would consider PFICs -- non-U.S. mutual funds or unit trusts, as examples -- then you'll probably need to make what are called QEF "mark to market" elections every year. In other words, yes, you'd pay U.S. income tax on the net gains each year, realized or unrealized, if they're PFICs.
> 
> ...



Oops BBC  I missed this post !!

In answer to your question, by the time I go to interview, here's what I'll have.

Savings account - around $30,000
Superannuation - $250,000

The Bank account will swell by ANOTHER $700,000 following settlement of house sale so that money probably won't be there when I go to interview


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## BBCWatcher (Dec 28, 2012)

I think you'll be fine.


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## Mike Capcom (Sep 18, 2013)

BBCWatcher said:


> I think you'll be fine.


I owe you a beer !!!

Next thing (I paid escrow on the US house this morning) is the medical. I have Type 2 (well under control) so that will happen next week and then the trip to Sydney for the interview after we lodge the I130.

As for the financial side, I reckon i'll just hire a consultant. Too old to bother doing it myself. Thanks

Mike


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## Forthegoodknight (Nov 16, 2011)

Wait time...

My husband and I applied for a spousal visa for him (we are in France) and it has taken longer than a year. I will give you the break down so that you can see for yourself and be prepared that this might happen to you as well, since it seems to be happening across the board.


July 17, 2013 - USCIS received our I-130

June 25, 2014 - We are notified that our petition is accepted and our application is passed on to the NVC, awaiting out next dossier full of papers.

July 13, 2014 - The NVC receives our financial support documents and everything else under the sun. (One year has passed)

November 3, 2014- We just yesterday received our appointment date for our visa interview in Paris, which will be held December 3rd.



So as you can see the process is taking a LONG time these days, just be prepared for this. When we spoke to an immigration attorney a few months ago we were told that current wait times just for the NVC alone are not around 120 days instead of the 30 days it used to be. For us this turned out to be about right, and the appointment is still a month away and we are uncertain how soon after this we will have the actual visa in hand. I will add that all of our paperwork was sent in correctly and well organized with a table of contents and everything...and yet we still received a message from the NVC saying they needed my husbands police records from France and Belgium. Later they seemed to have magically found these paper on their own and I honestly have to wonder if they were not just stalling for time, as the attorney also told us that they routinely get requests for documents that were already sent in.

Moral of the story, things are going to take longer than you expect.


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## Mike Capcom (Sep 18, 2013)

Forthegoodknight said:


> Wait time...
> 
> My husband and I applied for a spousal visa for him (we are in France) and it has taken longer than a year. I will give you the break down so that you can see for yourself and be prepared that this might happen to you as well, since it seems to be happening across the board.
> 
> ...


Thanks for that ... it sounds alarm bells I have to say. Has anybody else experienced delays anywhere near these timeframes?

Mike


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