2011 Taxes

[TedM 9]

I know this is a fairly technical tax question, but my wife is still a resident of the Philippines and USCIS has not moved at all on my I-130 application.

So, can you claim a foreign spouse on your tax return and file as 'married, joint return'? Without a federal tax number of some kind, I'm not sure how, but a friend said it can be done and (obviously) will generate a larger refund.

Thanks

[bigdog 376]

http://www.irs.gov/businesses/small/international/article/0,,id=96734,00.html Here is the IRS, hope it helps.

[Pitaya 2,577]

http://www.irs.gov/businesses/small/international/article/0,,id=96734,00.html Here is the IRS, hope it helps.

Great link!

Thanks!

[evelyn1140 18]

Great link!

Thanks!

it is but still confusing.....My husband got his interview, I was thinking to add him in my taxes as joint but now I am not sure.

[TedM 9]

it is but still confusing.....My husband got his interview, I was thinking to add him in my taxes as joint but now I am not sure.

I am debating as well, as it is a confusing process. I am sure, however, that it WILL delay my refund by 2-3 months easy.

From what I gathered calling the IRS help line, you need to file form W-7: Reguest for Individual Taxpayer Identification Number (ITIN) (with a certified copy of the alien's passport) WITH the tax return. It gets sent to a different IRS office in Austin. They have to approve that request, provide a ITIN, then process your return.

What's confusing to me is that for a nonresident alien you must also submit a letter, signed by you both, that the nonresident is allowing themselves to be considered a resident for tax purposes. However, the requirements for that letter state that you must show their ITIN, which you won't have when you submit your return. The other issue is that you must both then report all of your worldwide income, which would be taxable, though there is a substantial exemption allowance.

All of this has left me with two choices: file as single and take my measly refund; or go to a CPA to handle my return.

Edited January 11, 2012 by TedM

[Deputy Purple 1,294]

What's confusing to me is that for a nonresident alien you must also submit a letter, signed by you both, that the nonresident is allowing themselves to be considered a resident for tax purposes. However, the requirements for that letter state that you must show their ITIN, which you won't have when you submit your return. The other issue is that you must both then report all of your worldwide income, which would be taxable, though there is a substantial exemption allowance.

All of this has left me with two choices: file as single and take my measly refund; or go to a CPA to handle my return.

Since you are applying for her ITIN you don't' need to provide it with the letter.

Unless your wife has substantial foreign income you will come out ahead of the game but filing joint, married.

FWIW, you do have a 3rd option: File on time as single then once she's here and has her SSN you can amend your return to file jointly with her.

[TedM 9]

Since you are applying for her ITIN you don't' need to provide it with the letter.

Unless your wife has substantial foreign income you will come out ahead of the game but filing joint, married.

FWIW, you do have a 3rd option: File on time as single then once she's here and has her SSN you can amend your return to file jointly with her.

Thanks! Yes, I am thinking about filing single then amending later. Though the extra cash could pay another trip or two to see her while I wait for the CSC to do their thing.

But I appreciate the advice!

[Deputy Purple 1,294]

Thanks! Yes, I am thinking about filing single then amending later. Though the extra cash could pay another trip or two to see her while I wait for the CSC to do their thing.

But I appreciate the advice!

Or the extra cash could prove useful once she's landing in the US, trust me you'll be bleeding cash just getting her prepared for life in the US.

[DiZZyLoX 114]

Or the extra cash could prove useful once she's landing in the US, trust me you'll be bleeding cash just getting her prepared for life in the US.

wait a minute wait a minute...refunds get bigger if you file "married, filing jointly"? My hubby has his SSN, we're just pending AOS. Oh please say it is so! Lord knows we need the $$

[xebec 195]

Thanks! Yes, I am thinking about filing single then amending later. Though the extra cash could pay another trip or two to see her while I wait for the CSC to do their thing.

But I appreciate the advice!

I have looked into this as well. I would be cautious about filing as single. It is fairly clear that, unless you meet head of household qualifications a.p. the IRS instructions, located here IRS then you must choose either married filing jointly, or married filing seperately. I'm certainly no tax pro.....but these appear to me to be the only options.

[Deb+Steve 13]

It's worth the extra time to file jointly if you're having to mail in the W7 etc. The foreign earned income exclusion for 2011 is $92,900 unless your spouse earned more than that for the year.

[F & J 21]

wait a minute wait a minute...refunds get bigger if you file "married, filing jointly"? My hubby has his SSN, we're just pending AOS. Oh please say it is so! Lord knows we need the $

Yes - we got a big tax refund the past two years we filed jointly (since the year we got married) and our accountant said it was because we filed jointly and I didn't have a job yet? ^__^;;

[TedM 9]

I have looked into this as well. I would be cautious about filing as single. It is fairly clear that, unless you meet head of household qualifications a.p. the IRS instructions, located here IRS then you must choose either married filing jointly, or married filing seperately. I'm certainly no tax pro.....but these appear to me to be the only options.

I hadn't looked at it that way. You're right. I just need to talk to a CPA and have them do my taxes, not Turbo Tax this year.

[rin and john 71]

I hadn't looked at it that way. You're right. I just need to talk to a CPA and have them do my taxes, not Turbo Tax this year.

Another option is to file an extension (IRS will automatically allow you six months, no questions asked). If your spouse will be here before September and have her SSN by then, you avoid the ITIN process

For TY 2006 (married Oct 2006, Rin arrived April 2007) I did the ITIN - filed in June, refund in September so the 2 to 3 months you stated is accurate. Not too difficult. I used Turbotax and printed a copy. Then did the W-7 and sent both to Austin along with the letter saying to treat Rin as a resident for 2006. If you can do your taxes yourself, you can do this.

If your foreign spouse has foreign income, you will also need to file form 2555.

http://www.irs.gov/pub/irs-pdf/f2555.pdf

When you file MFJ, you report your spouses foreign income on your 1040, then use form 2555 to exclude it from tax (up to $92,900 in foreign income in 2011).

If the W-7 is too difficult (getting passport copy notarized, etc) and you cannot wait out the extension, then I would file MFS and do an amended return (file 1040X) as soon as your spouse has her SSN. We had Rin's passport copy notarized at the US Embassy in Thailand.

And from the US Embassy in PI;

W-7 Application

The Embassy Consular officers can authenticate originally signed birth certificates and marriage contracts issued by the Philippine National Statistics Office (NSO) in Quezon City, Philippines, after certification from Department of Foreign Affairs official (DFA) in support of applications for US taxpayer ID numbers, ITIN (W-7) application. Other documents required by the ITIN (W-7) may be certified by the issuing agency or official custodian of the original record.

Fee: $50(or its peso equivalent) per transaction (seal)

Note: Each additional seal provided at the same time in connection with the same transaction there is additional fee of $50.

http://manila.usembassy.gov/service/notary.html

[TedM 9]

Another option is to file an extension (IRS will automatically allow you six months, no questions asked). If your spouse will be here before September and have her SSN by then, you avoid the ITIN process

For TY 2006 (married Oct 2006, Rin arrived April 2007) I did the ITIN - filed in June, refund in September so the 2 to 3 months you stated is accurate. Not too difficult. I used Turbotax and printed a copy. Then did the W-7 and sent both to Austin along with the letter saying to treat Rin as a resident for 2006. If you can do your taxes yourself, you can do this.

If your foreign spouse has foreign income, you will also need to file form 2555.

http://www.irs.gov/pub/irs-pdf/f2555.pdf

When you file MFJ, you report your spouses foreign income on your 1040, then use form 2555 to exclude it from tax (up to $92,900 in foreign income in 2011).

If the W-7 is too difficult (getting passport copy notarized, etc) and you cannot wait out the extension, then I would file MFS and do an amended return (file 1040X) as soon as your spouse has her SSN. We had Rin's passport copy notarized at the US Embassy in Thailand.

And from the US Embassy in PI;

W-7 Application

The Embassy Consular officers can authenticate originally signed birth certificates and marriage contracts issued by the Philippine National Statistics Office (NSO) in Quezon City, Philippines, after certification from Department of Foreign Affairs official (DFA) in support of applications for US taxpayer ID numbers, ITIN (W-7) application. Other documents required by the ITIN (W-7) may be certified by the issuing agency or official custodian of the original record.

Fee: $50(or its peso equivalent) per transaction (seal)

Note: Each additional seal provided at the same time in connection with the same transaction there is additional fee of $50.

http://manila.usembassy.gov/service/notary.html

Thanks so much!! This is very helpful!