Foreign researcher, 1042-S, W-2 and other matters

[Margaret CPA in OH]

New client from Germany is professor at local university, third year in US. She is paid in part from German grant, in part from local school so received W-2 and 1042-S plus money from German government. She provided monthly payment vouchers from Germany and I have partial translation. Germany is not on calendar year for tax.

She married German in 2013, bought a house in neighboring state but is also traveling back to Germany to seek other employment and spend summers there while not teaching. Spouse is self-employed artist with no income in US in 2013 but bought lots of equipment to work and uses one room as home office.

This is her third year here so she qualifies as resident alien. First 2 years school filed 1040 NR.

Any particulars to look out for here? I am aware of much but don't want gotchas popping up.

Thanks

[Margaret CPA in OH]

Okay, it seems a fair amount of interest but no replies yet. I thought there were some folks here with more experience than I have with foreign issues. Still think so. Feel free to chime in!

A related issue is the cost to move the spouse's belongings from Germany. I'm thinking no from the perspective of moving for a new job but maybe a deduction on his Schedule C as he relocated his entire work place and equipment. Any thoughts?

[MsTabbyKats]

I'm going to pm you