More W7 questions

[mchina34 0]

Ok, sorry folks, but I can't seem to find the original posts I posted in just a few days ago.

So, I contacted a tax company to do my taxes and told them I needed to do a W7 and explained why. The woman responded by telling me they need my wife to sign the W7 form (already did that and passport), and that they need her W2 forms. The lady from the tax company seems to imply that the W7 is used for a foreign spouse that worked for a US company.

Am I misinformed or what? I thought I used the W7 as everyone suggest for two reasons: 1) one I have to now file married as it's the law, 2) it can be used for my wife's interview as proof of valid marriage, and/or for the new I130 evidence (I submitted old I130 though).

So my situation is that I filed I130/I129f and my wife lives in China and has never been to the US nor has she worked for a US company. She does not have any sort of tax statements from the Chinese gov as we do in the US. Is this W7 intedend for me?

[jlivings99 0]

You need to W-7 to get a ITIN so you can file a tax return before your spouse gets a SS#. You can file either married-separate or married-joint. If you file married-separate your spouse's income does not appear anywhere. If you choose married-joint then your spouse has to elect to be treated as a resident and then you have to include the spouse's world-wide income ... with the possibility of all or most of it being excluded. If the tax company, you spoke to does not know how to handle your situation than you might want to shop around for another.

[Robor007 0]

I think the tax person may be confused or misinformed. I've found that this happens pretty often with those of us in our situation. I called my car insurance company to inform them I'm married (get the married discount) and the guy didn't know how to input it because my wife doesn't have a SS number. He said he's never come across this situation. Same thing when I went to our HR person and asked if it was possible to add my wife to my insurance. She said maybe she could be added and considered 'out of network' but she's never had that situation before.

To answer your question, I was told that our spouses foreign income doesn't have to be reported if it's under $82K USD (not sure if that's exact but it's low 80's for sure). My wife has no proof of her income from her work in the cruise industry and she didn't pay taxes because she was a Philippines citizen working in a US based company. She made well under 25% of the amount needed to be reported and even that is much more than the average salary in her country. I'm planning to send her a completed W7 for signature and file as married jointly. I'm still not sure if I simply exclude her income since it's under the amount needed to be reported or if I should attach something explaining the situation.

[jlivings99 0]

I think you have to use Form 2555 to report the foreign earned income and take the exclusion. I am accounting PhD who teaches tax classes but before I married my foreign spouse I was not very familiar with these rules.

[Robor007 0]

I think you have to use Form 2555 to report the foreign earned income and take the exclusion. I am accounting PhD who teaches tax classes but before I married my foreign spouse I was not very familiar with these rules.

If you've got your doctorate in accounting and teach tax classes but didn't know about this situation before your foreign spouse where does that leave us tax novices? I'll tell ya where >>>>

I guess it's about the same as the immigration process. That's so streamlined and simple to follow as well... I usually do my own taxes. No big deal, just myself with standard mortgage interest and property tax deductions. Now this! I'll check out form 2555 and see if I can make heads or tails of it.

[Nasturtium 500]

Jlivings99 is correct. My husband has never even so much as visited the US, but I did the W7 and got the ITIN... We did the foreign income exclusion form and I had his university print up a paper stating exactly how much he made over the year of 2005. If your spouse has to pay taxes, they can probably get a piece of paper printed up stating their income.

Your wife does have to sign the form. And it would be to your benefit to get something, anything that states what she made. But you will likely not have to claim it as long as you are under a certain earning category.

[mchina34 0]

Ok, thanks for the quick responses everyone.

I just got back from China with the form signed and her passport, so I just need to get my W2's from last year and I'll be set. She only made, like, $2500 or less all year, so I don't think I'm going to burden myself with getting proof of that unless the guys in black jackets show up at the door one day.

[~kiyah~ 14]

You can still file taxes with a status of "married filing jointly" even if only one spouse has income and one spouse is a non-resident alien...per the IRS. This also still entitles you to the full standard deduction for married filing jointly of $10,300.

I am also filing the ITIN for my husband (non-resident alien) along with our 2006 joint tax return and I am the only one with income for 2006. I am using form 1040A, we have nothing to itemize thank God, so it's actually fairly easy.

~Kiyah~

Edited January 28, 2007 by Kiya

[tiberonsuave 0]

Ok, thanks for the quick responses everyone.

I just got back from China with the form signed and her passport, so I just need to get my W2's from last year and I'll be set. She only made, like, $2500 or less all year, so I don't think I'm going to burden myself with getting proof of that unless the guys in black jackets show up at the door one day.

I did the same thing for tax year 2003. My wife was working in Colombia and had no verifiable income. It has not been an issue to date.

t

[cbd2cai 0]

You can still file taxes with a status of "married filing jointly" even if only one spouse has income and one spouse is a non-resident alien...per the IRS. This also still entitles you to the full standard deduction for married filing jointly of $10,300.

I am also filing the ITIN for my husband (non-resident alien) along with our 2006 joint tax return and I am the only one with income for 2006. I am using form 1040A, we have nothing to itemize thank God, so it's actually fairly easy.

~Kiyah~

Why 1040A? if you have nothing to itemize, then can you use 1040EZ. In my case, my itemized deductions were enough to go that way . . . imagine that . . .owning a small house and paying mortage interest with property taxes . . and I am able to take standard deductions. I am filing married joint. I think I'm running over to the post office to get some more forms . . . oh, wait, I can probably download all these forms. I'm going to check that out.

[~kiyah~ 14]

You can still file taxes with a status of "married filing jointly" even if only one spouse has income and one spouse is a non-resident alien...per the IRS. This also still entitles you to the full standard deduction for married filing jointly of $10,300.

I am also filing the ITIN for my husband (non-resident alien) along with our 2006 joint tax return and I am the only one with income for 2006. I am using form 1040A, we have nothing to itemize thank God, so it's actually fairly easy.

~Kiyah~

Why 1040A? if you have nothing to itemize, then can you use 1040EZ. In my case, my itemized deductions were enough to go that way . . . imagine that . . .owning a small house and paying mortage interest with property taxes . . and I am able to take standard deductions. I am filing married joint. I think I'm running over to the post office to get some more forms . . . oh, wait, I can probably download all these forms. I'm going to check that out.

Yes, the 1040EZ can be used in our case. We are using the 1040A by choice even though we don't have anything to itemize. I just want to make sure the ITIN and tax return are both properly processed by the IRS using the 1040A.

~Kiyah~

Edited January 28, 2007 by Kiya

[cbd2cai 0]

You can still file taxes with a status of "married filing jointly" even if only one spouse has income and one spouse is a non-resident alien...per the IRS. This also still entitles you to the full standard deduction for married filing jointly of $10,300.

I am also filing the ITIN for my husband (non-resident alien) along with our 2006 joint tax return and I am the only one with income for 2006. I am using form 1040A, we have nothing to itemize thank God, so it's actually fairly easy.

~Kiyah~

Why 1040A? if you have nothing to itemize, then can you use 1040EZ. In my case, my itemized deductions were enough to go that way . . . imagine that . . .owning a small house and paying mortage interest with property taxes . . and I am able to take standard deductions. I am filing married joint. I think I'm running over to the post office to get some more forms . . . oh, wait, I can probably download all these forms. I'm going to check that out.

Yes, the 1040EZ can be used in our case. We are using the 1040A by choice even though we don't have anything to itemize. I just want to make sure the ITIN and tax return are both properly processed by the IRS using the 1040A.

~Kiyah~

You might have a point . . . I'll take a look at that too before sending it in!

[mchina34 0]

Ok, so I got my taxes done Saturday, and the lady didn't have much of a clue as to how to do this. Luckily i read at least a little bit and these forums.

However, I'm still uncertain as to whether or not things were done correctly.

I did married file seperately as I can't furnish proof of my wife's earnings (neither can she) which it says is a requirements in the IRS rule book I seen, and if I filed married filing jointly she would have to sign the federal tax return (says so explicitly at the bottom), which is a pain for obvious reasons.

Does this sound right so far? It's ok to file married separately, right?

Then, we did the W7 and the box we checked was E (Spouse of US citizens). For the 'applicant's address' I used mine, since I need her passport to come back to me. I also left Forein Address blank, since it says 'if different than applicatn's address'.

Again, she lives in China, but I want the tax return and her passport to come back to me. Having said that, does all seem good to file? My tax rep is doesn't seem confident, so this is why I ask. thanks!

[lostsoul 0]

damn.. I need to do this too.. my wife should be here on the 13th and I need to do taxes.. so the run down is

Do a w-7 form and attach it to the 1040a (no need to send w-7 form first?) and sign up a married -joint so we can get some moeny back? My girl has not worked and I have been sending her money for school and living needs

ahhhhh... beeer.. I need beer

[mchina34 0]

damn.. I need to do this too.. my wife should be here on the 13th and I need to do taxes.. so the run down is

Do a w-7 form and attach it to the 1040a (no need to send w-7 form first?) and sign up a married -joint so we can get some moeny back? My girl has not worked and I have been sending her money for school and living needs

ahhhhh... beeer.. I need beer

yeah, if she's here to sign the federal tax return AND the W7, then filed married joint and mail in both the federal and W7 together to the special address (in philly) which is noted in the W7. as i know, if she can't sign the federal tax return & furnish proof of her income overseas, then you'll have to file married seperately, but will still need the W7 signed by her.