Tax scenario for US citizen living abroad in 2019

[NJKid 1]

Hello,

Hope I have posted the question in correct forum. I am a USC living in Nepal since mid October, 2018. Here is my scenario:

 

 

•  Filed federal/state taxes for 2018 tax year as a US resident and paid the dues to IRS via direct debit
• Have been married since 2016 but spouse has NEVER been to the USA (hence no SSN/ITIN). Filed my 2017 & 2018 taxes as single after consulting a tax firm in the US
• Haven't worked or earned 0 income after I have moved abroad

 

I heard that US citizens living abroad must file taxes regardless of income earned or not. I tried to check the IRS website and find more information for situation like mine but only find more information for people working abroad and/or expats. Does someone have a similar situation like mine or know where or how to find information on filing taxes for people with no income?

 

Any suggestion is greatly appreciated. Thanks!

[TBoneTX 45,304]

Thread is moved from the Emigrating From forum to the Tax & Finances forum.

[geowrian 22,337]

If your income is below the filing threshold, then you are not required to file. This is the same whether residing or earning income domestically or while abroad.

You can file...and it should be pretty simple to do so with nothing to claim...but it is not required. There is a checkbox on the I-864 for the case of having not been required to file.

 

Your US tax firm was incorrect. You cannot file as single when married. Married Filing Separately (MFS) is just as much work - writing in NRA for your spouse's SSN per the 1040 instructions.

This is a tax issue (likely without a meaningful change in tax liability), not an immigration one.

 

You can also use this IRS wizard to confirm: https://www.irs.gov/help/ita/do-i-need-to-file-a-tax-return

[NJKid 1]

16 minutes ago, geowrian said:

Your US tax firm was incorrect. You cannot file as single when married. Married Filing Separately (MFS) is just as much work - writing in NRA for your spouse's SSN per the 1040 instructions.

Thanks @geowrian for your response. I remember the firm suggested refiling once my spouse had immigrated to the US and update the marital status. I am not a tax expert so went with their advice.

 

Will I be in trouble for that later with IRS?

 

Is there any known ways to fix it even though i seem not to be required to file taxes in my situation (income below threshold)?

 

I do not have plans to move back to the US for few more years due to family reasons. 

[geowrian 22,337]

7 hours ago, NJKid said:

Thanks @geowrian for your response. I remember the firm suggested refiling once my spouse had immigrated to the US and update the marital status. I am not a tax expert so went with their advice.

 

Will I be in trouble for that later with IRS?

 

Is there any known ways to fix it even though i seem not to be required to file taxes in my situation (income below threshold)?

 

I do not have plans to move back to the US for few more years due to family reasons. 

The only trouble would be if you owed more as a result of the mistake. And that would be in terms of penalties...it's not like tax evasion here. In the vast majority of cases, the mistake has no actual tax liability difference, so I would not expect even the penalties.

You can amend taxes pretty much anytime.

 

Moving forward, you can file tax returns with no income, just so you have them on record. It's sometimes easier to show a tax transcript with nothing on it than it is to get documentation that you didn't need to file in the first place.

Alternatively, you can get a verification of non-filing from the IRS.

[NJKid 1]

Thats a relief to hear. Thank you. I have no outstanding liability with the IRS.

 

on a side note, wondering if having a tax liability(but already paid via direct debit) for 2018 tax year disqualified me from getting stimulus money. Did not receive anything yet. Status also not available while checking online. Maybe filing 2019 tax with no income will help? I read in many places that US citizens living abroad are also included in the stimulus

Edited April 16, 2020 by NJKid

[geowrian 22,337]

2 hours ago, NJKid said:

Thats a relief to hear. Thank you. I have no outstanding liability with the IRS.

 

on a side note, wondering if having a tax liability(but already paid via direct debit) for 2018 tax year disqualified me from getting stimulus money. Did not receive anything yet. Status also not available while checking online. Maybe filing 2019 tax with no income will help? I read in many places that US citizens living abroad are also included in the stimulus

For the stimulus, they likely will use your 2018 return information (unless possibly if you submit the non-filing report ASAP - https://www.irs.gov/coronavirus/economic-impact-payments).

Having no tax liability isn't an issue...you would still qualify. There is no minimum requirement.

Note that the form to check it online is extremely sensitive - whatever info you provide has to exactly match what's on the 1040, address and all. Even one letter off can give the "unable to verify eligibility" message.

 

Edit: And if you owe, that qualifies too. I owed 218 and 2019. Ihad to provide my bank account info via the link above to request the direct deposit. Otherwise they will send a check...eventually.

Edited April 16, 2020 by geowrian