Solved

Hi, I am working on an H1b visa and living in VA where I pay taxes and my wife is a resident of MD, We are buying a house in MD as Co-owners, how do taxes work for me?

Forum|Forum|2 years ago
October 13, 2023
2 replies
0 views

As the loan is in my name though I won't stay at our house in MD, we will be paying property taxes in MD. First is it legal to buy a house in another state on h1b and second how are my taxes going to work?

TurboTax Free Edition Online

Best answer by pk12_2

@rahulk09 , Namaste Rahul ji.

(a) are you both on work visa or is your spouse a US person ( citizen / GreenCard )?

(b) when did you enter US this time and were there days ( how many ? ) present during 2020, & 2021 ?

(c) The effects of the purchase of a house, would effect you only to the extent of being able to deduct the mortgage interest and only if you itmemize on your Federal tax return. These days most people use standard deduction.

(d) As a resident of one state , there is no restriction to buying property in the same state or another state. When and if you dispose off the property teh gain would be taxed ( generally ) by the federal tax and your home state and also the state where the property is situated. There is also credits for having paid taxes to a different state than your home state.

(e) Welcome to having joined the ranks of homeowners.

Is there more I can do for you ?

Namaste ji

pk

Employee

pk12_2Answer

Employee

@rahulk09 , Namaste Rahul ji.

(a) are you both on work visa or is your spouse a US person ( citizen / GreenCard )?

(b) when did you enter US this time and were there days ( how many ? ) present during 2020, & 2021 ?

(c) The effects of the purchase of a house, would effect you only to the extent of being able to deduct the mortgage interest and only if you itmemize on your Federal tax return. These days most people use standard deduction.

(d) As a resident of one state , there is no restriction to buying property in the same state or another state. When and if you dispose off the property teh gain would be taxed ( generally ) by the federal tax and your home state and also the state where the property is situated. There is also credits for having paid taxes to a different state than your home state.

(e) Welcome to having joined the ranks of homeowners.

Is there more I can do for you ?

Namaste ji

pk

R

rahulk09Author

@pk12_2 Thanks for replying!!

(a) are you both on work visa or is your spouse a US person ( citizen / GreenCard )? We both are on Visa I am on H1b and wife on J1

(b) when did you enter US this time and were there days ( how many ? ) present during 2020, & 2021 ? we visited India In march 2023 and came back in the end of March 2023

Do I need to file non-resident tax return for MD along with my home state of VA?

Also my wife is co-owner so she could get return in MD as first time home buyer?

P

pk12_2

Employee

@rahulk09 , thank you for your response to my questions -- I still need to know when you entered the country and when did your spouse enter USA--please . Iam trying to determine if you are Resident for Tax purposes or you are still a Non-Resident Alien for the tax year 2022. Note if you are not a resident for tax purposes, you cannot use TurboTax but must use a tax professional or some service like SprinTax.

Assuming that you and your spouse are both residents for tax purposes, you can generally prepare & e-file form 1040 ( supported by TurboTax ). It also will mean that ( again depending on exact facts and circumstances ) file a Married Filing Joint return for federal purposes..

For your State taxes , if your home ( where you live / use as main residence ) , bank, driver's license etc. to prove residence in that state ) is in ONE State and you work in a different State then you may have to file two state returns ---- the home state covering your world income and a Non-Resident State for the other state.

Does this help and do you need more details -- I will have to look up the two states that are mentioned here and will come back in a short while --- but you have to tell me which state is your home state.

Also there is no First Timme Home Buyer's credit anymore -- that was initiated in 2009 and 2010 -- thereafter there is no new federal credit.

pk