Part-year resident status

[sabkosl13]

Hi everyone,

Taxpayer has Green Card, his wife also. They have two kids born in U.S. From January 2021 to July 2021 they lived together in other country. From August until now taxpayer with one child live in New Jersey. His wife and another child stayed in their country. I checked part-year NJ resident. 

What is taxpayer filling status? MFS?

And one more thing - his income is only from NJ source. I put this info in the allocation worksheet, but NJ count only part of this income. Is it correct? 

Thank you

[sjrcpa]

MFS.

You could do MFJ but in that case non US resident spouse has to pay US tax on their worldwide income.

[sabkosl13]

She don't want that, so MFS is OK. Thank you

[sabkosl13]

What about his income? Do you know, why the system use only partial? All his income is from NJ and was received during NJ residency. 

[joshuabarksatlcs · Accepted solution]

"They both have green card."  One crucial factor: Green card dates and their presence in the US in the year they got the green card.  

If they got the green card in 2021, See  https://www.irs.gov/individuals/international-taxpayers/residency-starting-and-ending-dates

Green card holders are subject to worldwide income and pretty much all the general tax regulations.  A residency on foreign soil would make a difference for federal tax in only a few issues such as Foreign earned income exclusion...  FBAR is also applicable to green card holders.

[joshuabarksatlcs]

RE: What about his income? Do you know, why the system use only partial? All his income is from NJ and was received during NJ residency. 

Not enough facts given.  Did you report any foreign income?  If 100% of the income entered was from NJ, why would there be "partial"?? 

Did the system count one NJ source income but NOT another NJ source income (if so, check your input.)  

[sabkosl13]

I don't know why.

Business Income Worksheet shows full amount as taxable. It is same as Federal. 

In Part-Year Resident State Allocation Worksheet under General Information I put $0 for foreign country and full for NJ.

And in Allocation Worksheet under State system set part of income. 

[sabkosl13]

I fix it! I am not sure how, but now is OK.

Thank you