Married filing jointly while AOS in process. Self-employed.

[Catalina Cuqui 17]

Hi guys. I've read several posts about this but I haven't found what I'm looking for, so please help!

I came to the US with a K1 visa in January 2017. I am still waiting for my GC interview to be scheduled. I have EAD and last year I made exactly $100 (out of tutoring a student) minus -$300 on business expenses, so net income is -$200. My husband has a regular job at a company. My questions are:

1) Can we still e-file our taxes (as we have to attach the statement where we say we want to treat me as a resident alien for tax purposes)? Is there a way to attach this statement with TurboTax or other e-file programs?

2) If we do e-file, can we add my income of $100 as "miscellaneous income" (TurboTax charges $89 for self-employed taxes, and I don't wanna be ripped off after losing $200 last year)?

3) Do I actually need to declare that income (I now that I don't have to pay any taxes because I made less than $400 as self-employed, but do I still need to declare those $100)?

4) Finally if we can't e-file, how do we do our taxes?? I have no idea, and my husband has always used TurboTax before.

Thanks for answering!

Edited January 25, 2018 by agnesita84

[JE57 239]

These are not Immigration questions they are TurboTax questions.  I see no reason that you couldn't use Turbo tax to do what you need to do at this point you should have a SSN so you'd simply file jointly and provide your SSN.  If you don't have an SSN yet you should be able to go to your local SS office and get a SSN.  I think the form/letter you are referring to is more relevant for couples who reside overseas. 

[MariaR323 199]

2 hours ago, agnesita84 said:

Hi guys. I've read several posts about this but I haven't found what I'm looking for, so please help!

I came to the US with a K1 visa in January 2017. I am still waiting for my GC interview to be scheduled. I have EAD and last year I made exactly $100 (out of tutoring a student) minus -$300 on business expenses, so net income is -$200. My husband has a regular job at a company. My questions are:

1) Can we still e-file our taxes (as we have to attach the statement where we say we want to treat me as a resident alien for tax purposes)? Is there a way to attach this statement with TurboTax or other e-file programs? I don't believe TurboTax gives you that capability to attach election statements. Other professional tax software does, such as software an independent tax preparer might use.

2) If we do e-file, can we add my income of $100 as "miscellaneous income" (TurboTax charges $89 for self-employed taxes, and I don't wanna be ripped off after losing $200 last year)? Technically, that wouldn't be correct to do, especially since you're claiming "business expenses". You should file the Schedule C.

3) Do I actually need to declare that income (I now that I don't have to pay any taxes because I made less than $400 as self-employed, but do I still need to declare those $100)? Again, technically, you should report the income.

4) Finally if we can't e-file, how do we do our taxes?? I have no idea, and my husband has always used TurboTax before. If you want to use TurboTax, you will have to print and mail in your tax return along with that election statement. 

Thanks for answering!

To sum it up, DIY (do-it-yourself) tax software such as TurboTax does not have the capability to attach the election statement. You have to print and mail it in. Either that or go with a professional, independent tax preparer who uses professional tax software and they can e-File the return for you.

 

Maria

[Italian_in_NYC 259]

No need to elect to be taxed as a resident. You were a resident in 2017 since you came to the US in January.

No problem to e-file (I assume you have a SSN), there will be a loss schedule C for $200 (you declare $100 of gross income and $300 in expenses)

[MariaR323 199]

Her timeline indicates entry into the US on Jan 12th, so not technically a full calendar year for 2017.

 

Can she still claim to be a resident for full year 2017 with an entry date into the US after the 1st of the year without the election statement?

[Italian_in_NYC 259]

2 hours ago, MariaR323 said:

Her timeline indicates entry into the US on Jan 12th, so not technically a full calendar year for 2017.

 

Can she still claim to be a resident for full year 2017 with an entry date into the US after the 1st of the year without the election statement?

Of course. She is a US Person for tax purposes as she meets the physical presence test. No need to elect.

If you file dual status, which wouldn't make any sense unless she had very substantial income Jan1-Jan11, you can't do MFJ.

[MariaR323 199]

18 minutes ago, Italian_in_NYC said:

Of course. She is a US Person for tax purposes as she meets the physical presence test. No need to elect.

If you file dual status, which wouldn't make any sense unless she had very substantial income Jan1-Jan11, you can't do MFJ.

So as long as you meet the substantial presence test of 183 days then you can file using the MFJ status and be treated as a resident [for tax purposes], without the election statement.

 

In this example with the OP, she could have entered as late as say June 30th, 2017 (185 days) and still file MFJ with her husband without the election statement?

 

Thanks, I always had that little speck of doubt in my head about this and always did err on the side of caution as a "just in case".

 

Maria

[Italian_in_NYC 259]

1 minute ago, MariaR323 said:

So as long as you meet the substantial presence test of 183 days then you can file using the MFJ status and be treated as a resident [for tax purposes], without the election statement.

 

In this example with the OP, she could have entered as late as say June 30th, 2017 (185 days) and still file MFJ with her husband without the election statement?

 

Thanks, I always had that little speck of doubt in my head about this and always did err on the side of caution as a "just in case".

 

Maria

It's actually the sum of 100% of current year US days + 1/3 of prior year US days + 1/6 of second prior year US days. If you're 183 or over, you are generally considered a US Person.

If your total is 183 or over but your current year US days are under 183, you may be able to claim closer connection (form 8840) to another country and be taxed only on US-sourced income (however, you still have to file most information returns, if they apply).

Under some visas (F, J among others), you can exclude US days under the physical presence test (basically, you're a NR even if you spend the whole year in the US on a student or trainee visa).

[Catalina Cuqui 17]

On 25/1/2018 at 12:51 PM, Italian_in_NYC said:

Under some visas (F, J among others), you can exclude US days under the physical presence test (basically, you're a NR even if you spend the whole year in the US on a student or trainee visa).

Thanks MariaR323!!!!!!!

Thanks Italian_in_NYC! I thought I had to send that statement because I do not have a green card yet, therefore I am NOT a legal permanent resident, I am just a de facto un-official resident. 

PS: What does NR mean?

 

[Catalina Cuqui 17]

On 25/1/2018 at 12:45 PM, MariaR323 said:

So as long as you meet the substantial presence test of 183 days then you can file using the MFJ status and be treated as a resident [for tax purposes], without the election statement.

 

In this example with the OP, she could have entered as late as say June 30th, 2017 (185 days) and still file MFJ with her husband without the election statement?

 

Thanks, I always had that little speck of doubt in my head about this and always did err on the side of caution as a "just in case".

 

Maria

I went back to the IRS website and I found something I hadn't seen before: https://www.irs.gov/individuals/international-taxpayers/determining-alien-tax-status "If you are an alien (not a U.S. citizen), you are considered a nonresident alien unless you meet one of two tests. You are a resident alien of the United States for tax purposes if you meet either the green card test or the substantial presence test for the calendar year (January 1-December 31)." Substantial presence test: https://www.irs.gov/individuals/international-taxpayers/substantial-presence-test

So, as I was here 353 in 2017, I meet the substantial presence test, therefore I am considered a resident alien for tax purposes. (Sharing links in case they're useful for someone else  )

Thanks, Italian_in_NYC.

[Catalina Cuqui 17]

https://www.irs.gov/taxtopics/tc851

[Kacie and Ivan 35]

Does anyone know if a nonresident alien absolutely needs an ITIN number?  My husband just received his EAD with his 'A' Number on it, but that number was rejected when I tried filing taxes as "married filing jointly." I'll have to file "married filing separately" because the ITIN number won't arrive in time to file taxes. But I can't understand why he would need that in addition to his work permit? 

[Wuozopo 4,293]

On 1/24/2018 at 10:19 PM, agnesita84 said:

If we do e-file, can we add my income of $100 as "miscellaneous income" (TurboTax charges $89 for self-employed taxes, and I don't wanna be ripped off after losing $200 last year)?

 

 Do you have a computer?  Buy TurboTax Basic Federal for $29.99. It will do Schedule C for self-employed. You can efile with it. We've done it for years... self employed, investments, home ownership, foreign income ...with the cheapo version. You don't need federal+state if you live in Austin. 

 

Amazon has a download https://www.amazon.com/TurboTax-Basic-Software-2017-Efile/dp/B075BBT5QF/ref=sr_1_3?s=software&ie=UTF8&qid=1519427675&sr=1-3&keywords=turbotax+2017+basic 

 

Same price at Target, BestBuy, Staples to go buy the CD or download

Target https://www.target.com/p/turbotax-basic-fed-efile-mac-2017-email-delivery/-/A-53169492

Staples https://www.staples.com/TurboTax+Basic/directory_TurboTax%20Basic?