Same-Sex Binational Couple Federal/State Tax Questions

[Erica & L 52]

Hi all,

Apologies if I'm posting this in the wrong forum.

My wife was trying to do her taxes online on TurboTax and when the option for marital status popped up, there was a completely separated option for same-sex couples. To my knowledge, you can file either "married filing jointly" or married filing separately" and TurboTax says as a couple, we'd need to file 3 separate federal returns. And because we live in Alabama, we have to file our state returns as single. *Please see attached document regarding what the deal is with Alabama.*

However, I don't have a SSN yet, so I'm not really sure how to move forward with the process. I've been in the US since June 2013 and obviously have not worked, and I worked for just under 3 months in Canada prior to leaving (which I plan to deal with separately, unless I am suppose to add that as well?) We just sent off our AOS so I'm in the process (very beginning) to obtaining my green card.

I read about obtaining a ITIN number, and I believe I qualify and that sort of takes the place of a SSN? So do I HAVE to have that before we can send off our tax returns? It said it could take up to 6 weeks to receive after sending in the application, but I believe it says you can send it in ALONG with your federal tax refund? Which I guess means we would have to file via paper and not with TurboTax?

Tax-Guidance.pdf

I've done all my taxes for myself and my wife's 2010 and 2011 for her via paper but that all seems so much more simple compared to this. I'm really confused, any help appreciated!

*Also, if my wife owes money to the IRS, and we set up a payment extension, will they just automatically take out whatever she owes them from this tax refund?

Edited February 8, 2014 by justfromerica

[Harpa Timsah 13,258]

My guess is that that question on turbotax is to differentiate between federal and state tax filings reqs. Federal tax should be married.

Why don't you wait to file until you get your EAD so you can get a SSN?

You need to include your Canadian stuff on US tax because it is for the whole year (there are many ways to do this, but ignoring it is not right).

[Erica & L 52]

My guess is that that question on turbotax is to differentiate between federal and state tax filings reqs. Federal tax should be married.

Why don't you wait to file until you get your EAD so you can get a SSN?

You need to include your Canadian stuff on US tax because it is for the whole year (there are many ways to do this, but ignoring it is not right).

I'm just not sure why TurboTax says we have to file THREE federal tax returns. If we want to file married jointly, would it not just be one federal for both of us, and then two separate state returns? Or maybe the wording is just confusing me, but TurboTax said this:

Now you'll need to prepare: A married federal return (two if filing separately) for both of you A unmarried federal return for you to prepare your state return A unmarried federal return for your partner to prepare their state return

I'm not sure how quickly I am going to get me EAD, providing I get my NOA for my package soon, and the deadline to file is in April so I'd be afraid of filing so close to the deadline. Also, my wife owes the IRS around $350 dollars and I had set up an extension so we didn't have to pay it all off until April 22nd, but then again, it would be cutting it really close. In addition, we could really use the money from her refund as soon as possible. To pay that off and to have a little bit of emergency money.

I requested a PIN from the CRA a few days ago, which I need before they can give me my T4 from that 3 months I worked. Once I get that, I can file for my Canadian taxes and use it for my American ones, I assume?

Edited February 8, 2014 by justfromerica

[Harpa Timsah 13,258]

I agree the 3 tax returns seems strange, and I was not aware of it before, but... I think I can make a little sense of it. If the state return requires you to reference a "single" tax return (like, it says, put here the amount on line XX), then you need a single return to get the right number. My guess is that those single federal returns are just "dummy" returns to help fill out the state ones. But, this is just my guess based on what you say.

You've got a lot of tax issues, old tax owed, it all makes it very messy.

Many people file on the last day. The rule is that the return must be postmarked on the last day, so there is nothing wrong with filing on the last day.

Maybe you can get a tax extension. Without a SSN your only choice is to get an ITIN. It would have been good to file AOS right after you got married, but what's done is done. Best of luck.

[Erica & L 52]

I agree the 3 tax returns seems strange, and I was not aware of it before, but... I think I can make a little sense of it. If the state return requires you to reference a "single" tax return (like, it says, put here the amount on line XX), then you need a single return to get the right number. My guess is that those single federal returns are just "dummy" returns to help fill out the state ones. But, this is just my guess based on what you say.

You've got a lot of tax issues, old tax owed, it all makes it very messy.

Many people file on the last day. The rule is that the return must be postmarked on the last day, so there is nothing wrong with filing on the last day.

Maybe you can get a tax extension. Without a SSN your only choice is to get an ITIN. It would have been good to file AOS right after you got married, but what's done is done. Best of luck.

Well, I just spoke with a Tax Expert on TurboTax that told me we would have to mail in all our forms regardless. I can complete them on TurboTax and then just click to print out instead of send once I reach the end of the application. He told me that we need to mail in:

Our married filing jointly return.

My wife would mail in an Alabama state return.

*Since I made no income in the State of Alabama, apparently I am not required to file an Alabama state return.*

A declaration stating that I want to be treated as a US resident for tax purposes.

Form W-7 for the ITIN and all supporting documentation.

Now, of course I am going to call the IRS on Monday to confirm this, but it is staring to make a bit more sense. He told me I would need to add my T4 information to the federal return, so I have to wait until I get that anyways. I am also not comfortable with mailing the original copies to prove my identity, and In the W-7 instructions it says you can go into a local IRS office and they can document your identity and that way you don't have to send away anything, i.e. my passport.

I wish I could have filed AOS right away, it's just always been a money issue unfortunately!

Thanks.

[Harpa Timsah 13,258]

Sounds like you're getting more of a handle on it. Best of luck.