Tax Return Clarification

[payxibka 10,045]

You are better to file an extension than to file a knowingly erroneous tax return. I am sure your explanation of "oops I didn't know I was married" will raise a few eyebrows.

Agreed.

Also, the point that the stimulus payment will not be given if a joint return includes an ITIN for one of the spouses was well made. While you could get the stiumus payment next year as a tax credit if you both have SSN's then, if the SSN will be coming shortly, delaying filing could be a better option this year.

Doesn't your other half need to have a SS number by 2007 year end to claim the payment?...thus defeating the purpose of delaying. If not I think I can wait til October to get another $600. And you won't be able to claim the tax credit next year. Its a one time deal-as I understand. Please let me know if I'm wrong.

The stimulis payment is based on your 2007 tax filing... Which of course is impossible to do before the year end... A SSN issued at anytime prior to the filing of the return should work just fine.

[Chris Parker 11]

Doesn't your other half need to have a SS number by 2007 year end to claim the payment?...thus defeating the purpose of delaying. If not I think I can wait til October to get another $600. And you won't be able to claim the tax credit next year. Its a one time deal-as I understand. Please let me know if I'm wrong.

The economic stimulus is technically a tax credit on the 2008 return. However, advance payments are being made based on income reported for tax year 2007 for those who have a SS number and file a return. If you don't get an advance payment, or the advance payment is less than you are entitled to get on the 2008 return, you may still claim the credit on the 2008 return. However, if the advance payment you receive this spring is more than you are entitled under your 2008 return, you will not be required to pay the excess back---it is a giveaway benefit. I don't think IRS has spoken yet about if folks who do not receive an advance payment because they file with an ITIN will be able to claim the credit on the 2008 return with their ITIN (though I'm pretty sure if they have an SSN by next year they will be able to claim it next year).

Edited February 29, 2008 by Chris Parker

[Chris Parker 11]

I don't think IRS has spoken yet about if folks who do not receive an advance payment because they file with an ITIN will be able to claim the credit on the 2008 return with their ITIN (though I'm pretty sure if they have an SSN by next year they will be able to claim it next year).

Actually, I looked at the bill itself---no stimulus payment (advance payment or 2008 tax return credit) can be made to an individual filing with an ITIN or to spouses unless both have a social security number. So, the rules for the tax credit on the 2008 return will be the same, social security number will be needed to claim the credit.

Also, of more interest to most folks here, because of the ability to claim the economic stimulus payment as credit on the 2008 tax return, new immigrants arriving this year will be to receive the economic stimulus payment next year when they file their first tax return next year with their social security number.

Edited February 29, 2008 by Chris Parker

[crys 1]

I don't think IRS has spoken yet about if folks who do not receive an advance payment because they file with an ITIN will be able to claim the credit on the 2008 return with their ITIN (though I'm pretty sure if they have an SSN by next year they will be able to claim it next year).

Actually, I looked at the bill itself---no stimulus payment (advance payment or 2008 tax return credit) can be made to an individual filing with an ITIN or to spouses unless both have a social security number. So, the rules for the tax credit on the 2008 return will be the same, social security number will be needed to claim the credit.

Also, of more interest to most folks here, because of the ability to claim the economic stimulus payment as credit on the 2008 tax return, new immigrants arriving this year will be to receive the economic stimulus payment next year when they file their first tax return next year with their social security number.

Does this mean that if we file a joint return we will not received any stimulus payment even though only one person doesn't have SSN? I am a US citizen and becasue i filed jointly with my husband (ITIN) i will not get stimulus payment because of him??

[Chris Parker 11]

Does this mean that if we file a joint return we will not received any stimulus payment even though only one person doesn't have SSN? I am a US citizen and becasue i filed jointly with my husband (ITIN) i will not get stimulus payment because of him??

Yes, that's how Congress wrote the law, unfortunately. You have to file as married separately (which may be more expensive for you to do than the $600 payment/credit you are seeking) to get an economic stimulus payment if you are in that situation. Filing late if an SSN will be obtained in the near future is another approach.

Internal Revenue Code

SEC. 6428. 2008 RECOVERY REBATES FOR INDIVIDUALS.

(h) Identification Number Requirement-

( 1 ) IN GENERAL- No credit shall be allowed under subsection (a) to an eligible individual who does not include on the return of tax for the taxable year--

( A ) such individual's valid identification number,

( B ) in the case of a joint return, the valid identification number of such individual's spouse, and

( C ) in the case of any qualifying child taken into account under subsection ( B )( 1 )( B ), the valid identification number of such qualifying child.

(2) VALID IDENTIFICATION NUMBER- For purposes of paragraph (1), the term `valid identification number' means a social security number issued to an individual by the Social Security Administration. Such term shall not include a TIN issued by the Internal Revenue Service.

Edited March 1, 2008 by Chris Parker

[MsZ 6]

Any thoughts on someone filing head of household?

[crys 1]

Does this mean that if we file a joint return we will not received any stimulus payment even though only one person doesn't have SSN? I am a US citizen and becasue i filed jointly with my husband (ITIN) i will not get stimulus payment because of him??

Yes, that's how Congress wrote the law, unfortunately. You have to file as married separately (which may be more expensive for you to do than the $600 payment/credit you are seeking) to get an economic stimulus payment if you are in that situation. Filing late if an SSN will be obtained in the near future is another approach.

Internal Revenue Code

SEC. 6428. 2008 RECOVERY REBATES FOR INDIVIDUALS.

(h) Identification Number Requirement-

( 1 ) IN GENERAL- No credit shall be allowed under subsection (a) to an eligible individual who does not include on the return of tax for the taxable year--

( A ) such individual's valid identification number,

( B ) in the case of a joint return, the valid identification number of such individual's spouse, and

( C ) in the case of any qualifying child taken into account under subsection ( B )( 1 )( B ), the valid identification number of such qualifying child.

(2) VALID IDENTIFICATION NUMBER- For purposes of paragraph (1), the term `valid identification number' means a social security number issued to an individual by the Social Security Administration. Such term shall not include a TIN issued by the Internal Revenue Service.

OK, Thank you.. how can i still get the stimulus payment when my husband gets here later this year? what do i need to do..thank you

[desiboy2k4 0]

Does this mean that if we file a joint return we will not received any stimulus payment even though only one person doesn't have SSN? I am a US citizen and becasue i filed jointly with my husband (ITIN) i will not get stimulus payment because of him??

Yes, that's how Congress wrote the law, unfortunately. You have to file as married separately (which may be more expensive for you to do than the $600 payment/credit you are seeking) to get an economic stimulus payment if you are in that situation. Filing late if an SSN will be obtained in the near future is another approach.

Internal Revenue Code

SEC. 6428. 2008 RECOVERY REBATES FOR INDIVIDUALS.

(h) Identification Number Requirement-

( 1 ) IN GENERAL- No credit shall be allowed under subsection (a) to an eligible individual who does not include on the return of tax for the taxable year--

( A ) such individual's valid identification number,

( B ) in the case of a joint return, the valid identification number of such individual's spouse, and

( C ) in the case of any qualifying child taken into account under subsection ( B )( 1 )( B ), the valid identification number of such qualifying child.

(2) VALID IDENTIFICATION NUMBER- For purposes of paragraph (1), the term `valid identification number' means a social security number issued to an individual by the Social Security Administration. Such term shall not include a TIN issued by the Internal Revenue Service.

OK, Thank you.. how can i still get the stimulus payment when my husband gets here later this year? what do i need to do..thank you

The only thing you can do is file for extension and file your return by Oct 15. That is the last date to file your return with extension.

I am confused about two things: The form 1040 says you can't use W-7 form if you're eligible for SSN, therefore you should be able to file your return as married filing jointly right after he lands in U.S. However, what would one put down in the SSN field if you have not received the SSN yet? i.e. in my case if my wife comes here on Oct. 1st and I apply for SSN and if I don't get the SSN before the 15th, how would I file my return?

Another thing I'm not sure is how do you submit the past three years of return to NVC if you filed for extension this year, when sending them I-864? Do they accept "filed for extension"?

If someone on this forum can ask the experts about these important questions, your help would be greatly appreciated!!

[desiboy2k4 0]

The only thing you can do is file for extension and file your return by Oct 15. That is the last date to file your return with extension.

I am confused about two things: The form 1040 says you can't use W-7 form if you're eligible for SSN, therefore you should be able to file your return as married filing jointly right after he lands in U.S. However, what would one put down in the SSN field if you have not received the SSN yet? i.e. in my case if my wife comes here on Oct. 1st and I apply for SSN and if I don't get the SSN before the 15th, how would I file my return?

Another thing I'm not sure is how do you submit the past three years of return to NVC if you filed for extension this year, when sending them I-864? Do they accept "filed for extension"?

If someone on this forum can ask the experts about these important questions, your help would be greatly appreciated!!

Ok, I think I found the answer to my first question. If you applied for SSN, then you can write "Applied for" where it asks for SSN.

[Chris Parker 11]

Ok, I think I found the answer to my first question. If you applied for SSN, then you can write "Applied for" where it asks for SSN.

No, that was allowed prior to 1996 when they introduced the ITIN to eliminate it. An ITIN (or a W-7 to apply for one) is required to file the return now.

[Chris Parker 11]

The only thing you can do is file for extension and file your return by Oct 15. That is the last date to file your return with extension.

Actually, you can file up to 3 years late.

However, if you owe money, you need to make payment by April 15th to avoid accuring interest and penalties. You can make payment with Form 1040ES before April 15th if you know how much you might owe.

[Chris Parker 11]

Another thing I'm not sure is how do you submit the past three years of return to NVC if you filed for extension this year, when sending them I-864? Do they accept "filed for extension"?

You might be able to submit the extension notice and just include the 3 prior years, I'm not sure.

Or, because of immigrant visa processing right now and the requirement to submit a 2007 tax return, it might be a better idea to just file with the ITIN for the spouse right now and forego the economic stimulus advance payment. You should still be able to claim it next year as a tax credit on your 2008 return, where it will increase your refund (and you will get another $600 for the spouse at that time too).

[desiboy2k4 0]

Ok, I think I found the answer to my first question. If you applied for SSN, then you can write "Applied for" where it asks for SSN.

No, that was allowed prior to 1996 when they introduced the ITIN to eliminate it. An ITIN (or a W-7 to apply for one) is required to file the return now.

I searched google for "Can you write "applied for" in 1040" and first link came up was a link to a book The Ernst & Young Tax Guide 2007. I know it's a year older but not that old.

You do make a valid point that it might be better to just to let go of the rebate this year and claim the credit next year. I hope we can get it next year. Who comes up with these dumb idea of giving to people who file jointly only if they BOTH have SSN. I think at least one SSN should equal to $600. Idiots working for us.

[Chris Parker 11]

I searched google for "Can you write "applied for" in 1040" and first link came up was a link to a book The Ernst & Young Tax Guide 2007. I know it's a year older but not that old.

You do make a valid point that it might be better to just to let go of the rebate this year and claim the credit next year. I hope we can get it next year. Who comes up with these dumb idea of giving to people who file jointly only if they BOTH have SSN. I think at least one SSN should equal to $600. Idiots working for us.

Even if you wrote "applied for" for the spouse, it would not meet the requirement that both the taxpayer and spouse must have a social security number to receive the economic stimulus advance payment.

"Applied for" means you applied for an ITIN (with Form W-7 submitted with the return). It doesn't mean you will apply for it in the future.

[MoonlitCherri 0]

Oh, I see now...I guess I'll file married jointly and get the credit next year for both of us.

I found where you were talking about the tax credit for 2008 at:

http://www.irs.gov/newsroom/article/0,,id=179211,00.html

Not eligible at the current time? If your circumstances change and you become eligible after you file your 2007 federal tax return, you can always file an amended return using Form 1040X. If you're not eligible this year but you become eligible next year, you can claim the economic stimulus payment next year on your 2008 tax return.

Thanx Chris.