Im saving my money (100% mine) in a joint account with my usc wife in egyptian bank . Now im transferring my money to usa getting ready for immigration by depositing my money in this joint account then she draws it by her debit card .. does this mean i have to pay taxes on them ?
THERE ARE MANY VARIABLES SUCH AS:
1.Are you a US citizen returning to the US? My assumption is you are not.
2, Were the funds you deposited in the Egyptian Bank earned from outside the US,i.e. you worked in Egypt and the income you received was not from a US source?
3.Has your wife filed a US tax return while you and/or she were living in Egypt?
I will make the following assumptions to answer your question:
a. You are not a US citizen
b. You have not filed a joint US tax return with your wife.
c. your wife has filed a US tax return in the status of married filing separately.
d. The money you put in the joint account was income you generated outside the US and was taxed
where ever you were paid or worked.
Based on these assumptions
1. you had no obligation to pay taxes to the US on your income you deposited in the Joint account.
2. Although in a joint account your wife made no contributions. That being the case she would not owe any US taxes. on what you put in.However she would have had to report she held a foreign account and it is possible the IRS would take the position 1/2 of the deposits were income to her and she would pay tax on that amount. She could take the position she was not in the US when the money was deposited and it had nothing to do with a US source,therefore no tax was due. Or she could say 1/2 was a gift and as long as it did not exceed $14k per year you would not have to pay gift tax. ( You would not have to pay anyway since you are not a US citizen) The IRS would then try to take the position it was income to her since you have no obligation to pay any taxes to the US.. [You will have to comply with the US Patriot Act if the amount exceeds $10k USD. The bank would hold up crediting your US account until the US Government is satisfied the funds are not for or from a terrorist organization.]
Even if the IRS tries to tax it you could claim credit for any taxes you paid to a non- US government on the amount in the joint account
Since there are so many salient facts missing in this question, the above cannot be relied on for any reason and especially for not paying taxes which may be owed.The above is not a tax opinion or can it be construed to encourage you not to pay taxes lawfully owed the US. I would suggest you contact a US tax attorney or CPA before you move your money.
You pay tax on the interest earned whether in the US or in Egypt. If the balance in Egypt exceeded $10K, you may have FBAR filing requirement. The information presented herein is for general purposes only. It is not intended to, and may not be construed as legal, tax or accounting advice. For specific advice, please consult a local counsel. Good luck. Zaher Fallahi, Tax Attorney, CPA, MBA, MS.
You must include any interest earned as income on your return. If you need to pay taxes on interest in Egypt then you will get to likely use the foreign tax credit here. If the amount is more than $10K then you will have FBAR reporting requirements. If you have had more than $10K in Egypt for more than the past year, contact a tax attorney because you may need to go through a disclosure program for offshore assets. This stuff is very serious and if you are seen as willfully hiding assets offshore and failing to pay taxes on them, the issue could go criminal, which isn't what you want if you are looking into immigration benefits. Sit down with a tax attorney knowledgeable about international tax issues and the offshore programs before seeking immigration benefits for your wife. Best of luck.
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