ITIN while waiting on visa?

[Talako 785]

17 hours ago, John & Rose said:

I guess if I don't want to claim them on taxes for 2018 (getting married in June) I can just wait for POE and SSN.  I was hoping for a deduction to help a little.

When it comes to taxes, remember that married is married.  You have two options.  One is to claim married filing separately which is usually bad news.  The other is to claim married filing joint (MFJ).  Those are your only two options. You can file MFJ even with a non-resident spouse.  There is an election you can file with your return.  Downside to that is that her income in PI must be included.  As far as the kids, I haven't a clue what the regs say. 

 

I would suggest you get your Google-fu on.

 

Edit:  This assumes you can get her a ITN.

Edited May 16, 2018 by Talako

[payxibka 10,045]

29 minutes ago, Talako said:

When it comes to taxes, remember that married is married.  You have two options.  One is to claim married filing separately which is usually bad news.  The other is to claim married filing joint (MFJ).  Those are your only two options. You can file MFJ even with a non-resident spouse.  There is an election you can file with your return.  Downside to that is that her income in PI must be included.  As far as the kids, I haven't a clue what the regs say. 

 

I would suggest you get your Google-fu on.

 

Edit:  This assumes you can get her a ITN.

While MFJ will typically results in a lower tax liability, the difference in the tax liability between filing MFS and S is about the same

 

The kids will most likely be eligible dependents as a qualifying relative, if the stepchild earned less than $4,050 and the taxpayer provided more than 50% of the child's support during the tax year

[John & Rose 7,239]

1 minute ago, payxibka said:

While MFJ will typically results in a lower tax liability, the difference in the tax liability between filing MFS and S is about the same

 

The kids will most likely be eligible dependents as a qualifying relative, if the stepchild earned less than $4,050 and the taxpayer provided more than 50% of the child's support during the tax year

Rose doesn't have a job and the kids are both full time high school students.  I am 100% of their support.  I have some time to figure it out but I am just heading into a new area of experience.  It would be nice if I could get some kind of tax break with them but I'm sure there are plenty of hurdles to jump over or trip on during this part of the journey.

[Ksenia_O 696]

40 minutes ago, Talako said:

When it comes to taxes, remember that married is married.  You have two options.  One is to claim married filing separately which is usually bad news.  The other is to claim married filing joint (MFJ).  Those are your only two options.

Not really. OP can file as a HOH with a non-resident alien spouse if he has a qualifying person (other than spouse).

 

[payxibka 10,045]

Just now, John & Rose said:

Rose doesn't have a job and the kids are both full time high school students.  I am 100% of their support.  I have some time to figure it out but I am just heading into a new area of experience.  It would be nice if I could get some kind of tax break with them but I'm sure there are plenty of hurdles to jump over or trip on during this part of the journey.

Once you get married and Rose has her ITIN you will be eligible for MFJ with Rose and you will be able to get the spousal exemption.  With the kids I am almost certain you will get them as dependents as well.  There is a residency test that might get in the way but I don't think it plays

[John & Rose 7,239]

1 minute ago, payxibka said:

Once you get married and Rose has her ITIN you will be eligible for MFJ with Rose and you will be able to get the spousal exemption.  With the kids I am almost certain you will get them as dependents as well.  There is a residency test that might get in the way but I don't think it plays

First step is get married, then I will get their ITIN.  We will take it step by step and see where it leads.

[Ksenia_O 696]

14 minutes ago, payxibka said:

With the kids I am almost certain you will get them as dependents as well.  There is a residency test that might get in the way but I don't think it plays

Kids, most likely , won't qualify to be dependents on Tax Return. One of the rules for ALL dependents: they must be US citizens, US nationals or resident aliens. And one of the rules for claiming kids - they must live with with you for at least half of the year. 

 

John,  you will be able to claim MFJ deduction, which is gonna be $ 24 000.0 for Tax year 2018. A personal exemption  is gone any way (new Tax Law). So, it doesn't really matter how many dependents you can claim. Your filing status matters. 

The only thing you will "loose" - child Tax credit , which can be claimed for a child under age 17. 

 

Hopefully, you will have your family here in 2019. And if kids are still going to schools, then you can clime and education credits for them. Even for oldest one if he is a full time student and under 24.

Edited May 16, 2018 by Ksenia_O

[Talako 785]

22 minutes ago, payxibka said:

While MFJ will typically results in a lower tax liability, the difference in the tax liability between filing MFS and S is about the same

 

The kids will most likely be eligible dependents as a qualifying relative, if the stepchild earned less than $4,050 and the taxpayer provided more than 50% of the child's support during the tax year

There are certain limits when filing MFS.  Those limits may resemble a single filer, but my memory fails me.  It has been a long time since I was doing taxes in public practice.

 

There are a bunch of tests to be counted as dependent.  The ones that may be the hurdle are related to presence/residency.  But you got to think that there is someway to claim them. 

[Talako 785]

25 minutes ago, Ksenia_O said:

Not really. OP can file as a HOH with a non-resident alien spouse if he has a qualifying person (other than spouse).

 

Well, you are throwing in a wild card of him having a dependent already here. MFJ and MFS was based on his stated situation.

[payxibka 10,045]

6 minutes ago, Talako said:

There are certain limits when filing MFS.  Those limits may resemble a single filer, but my memory fails me.  It has been a long time since I was doing taxes in public practice.

 

There are a bunch of tests to be counted as dependent.  The ones that may be the hurdle are related to presence/residency.  But you got to think that there is someway to claim them. 

Tax was the one area I avoided like the plague when I was in practice

[Talako 785]

Just now, payxibka said:

Tax was the one area I avoided like the plague when I was in practice

Back in the nineties, I spent six years in the Tax Department of a very large west coast CPA firm.  I did corporate taxes mainly.  I did individual taxation when they made me because it sucks.  Individual taxation was usually done by interns and our part-time elderly staff. 

[Ksenia_O 696]

3 minutes ago, Talako said:

Well, you are throwing in a wild card of him having a dependent already here. MFJ and MFS was based on his stated situation.

Well, should be also careful with stating the OP has only those two options - nobody really knows  the real situation behind every person here. A dependent can be also a relative. A parent for example. That person doesn't have to live with OP, but has to be provided more than half the cost of keeping up home. 

[John & Rose 7,239]

3 minutes ago, Ksenia_O said:

Well, should be also careful with stating the OP has only those two options - nobody really knows  the real situation behind every person here. A dependent can be also a relative. A parent for example. That person doesn't have to live with OP, but has to be provided more than half the cost of keeping up home. 

I am just looking for ideas.  I realize that my situation will probably not be the same as others.  Just trying to get information and see what direction I am heading in.  There is a lot of experience out there.  I was just picking some brains.  My situation is not that rare but tax laws change and this is all an ebb and flow process.

[Ksenia_O 696]

2 minutes ago, John & Rose said:

I am just looking for ideas.  I realize that my situation will probably not be the same as others.  Just trying to get information and see what direction I am heading in.  There is a lot of experience out there.  I was just picking some brains.  My situation is not that rare but tax laws change and this is all an ebb and flow process.

... John,  you will be able to claim MFJ deduction, which is gonna be $ 24 000.0 for Tax year 2018. A personal exemption  is gone any way (new Tax Law). So, it doesn't really matter how many dependents you can claim. Your filing status matters. 

The only thing you will "loose" - child Tax credit , which can be claimed for a child under age 17. 

 

As i've said before - do hope you will have your family here in 2019. Then you can clime education credits for kids, if they keep going to school here, in US. Even for oldest one if he is a full time student and under 24.

 

Good luck!!!

[Talako 785]

1 hour ago, Ksenia_O said:

Well, should be also careful with stating the OP has only those two options - nobody really knows  the real situation behind every person here. A dependent can be also a relative. A parent for example. That person doesn't have to live with OP, but has to be provided more than half the cost of keeping up home. 

A little pedantic, but ok.  I made the assumption that if his life was different than the scenario in this thread and from his comments in other threads, he would have been knowledgeable enough to know that the advice given might not be applicable.