Filing Taxes for Pending CR-1

[fsp 0]

Help would be greatly appreciated. I’ve gone to several tax accountants, and some have said to file single or I can’t file Married filing separately without a SSN. I can’t seem to find the right person  who can clarify my concerns. 

 

My beneficiary spouse resides and works in the Philippines, does not have SSN or ITIN and we are currently at the NVC stage of our petition. I, the petitioner, am a dual citizen of the U.S and the Philippines, and I do not have any income in the Philippines. 

 

My spouse and I have a joint account (does not earn interest)  in the Philippines that is just slightly over the FBAR threshold of 10k, I am prepared to report this, but does it matter that before I was added to the account late in 2020 that it was my spouse’s account and half of the amount was deposited by her before I was added to the account? Do I have the responsibility to report the entire account, regardless of circumstances of how we got above the reporting threshold as a US citizen? 

 

I've done some research and saw I would have 2 options to file taxes, Filing either Married Filing Jointly (MFJ) or Separately (MFS).

 

From my understanding, if I file MFJ, I would need to also file a W7 to obtain an ITIN for my spouse to opt-in to make my spouse a resident alien for tax purposes. Will doing so subject her income in the Philippines to U.S taxation? Also, since she is considered a resident alien for tax purposes, would she be required to report her individual bank accounts in the Philippines to FBAR?  

 

I've read that MFS is the default filing status when marrying a non-resident alien. The procedure would be that in place of a SSN or ITIN, I would place "NRA" for my spouse meaning, Non-resident Alien. If I go this route, e-filing would not be an option, and I would have to paper file. The downside would be on the tax side taking lower deductions, etc, which I'm okay with. H&R block online seems to allow me to go through taxes without a spouse’s SSN, and assist with filing by mail, but I hit a portion about Community Property Tax, and have absolutely no idea what to do for this. Can anyone kindly explain?

 

I guess the overall worry (aside from the tax issues of course) is if I incorrectly file my taxes, would that affect the petition at the NVC or at the U.S. embassy? Thank you again to any responses.

[JeanneAdil 6,498]

you have to file married whichever way you choose' MFJ or MFS

this is what i did MFJ

she is treated by IRS as nonresident alien spouse

 

https://www.irs.gov/individuals/international-taxpayers/nonresident-alien-spouse

 

and the US has a tax treaty with the phillipines allowing the exclusion of $107,600 for 2020 of foreign income

file form 2555 for the exclusion

 paper filing is the only way to do it as there is no way to scan (IRS needs originals) of the supporting documents and most online services don't even allow the form W7 or ask for it when you go thru their online filing system

if you applied for the ITIN just change it in the IRS system to the SS # when you  get one

hopefully u (or spouse) marked the box for USCIS to request the SS card

[isamanda 4]

On 5/12/2021 at 5:23 AM, JeanneAdil said:

 

if you applied for the ITIN just change it in the IRS system to the SS # when you  get one

hopefully u (or spouse) marked the box for USCIS to request the SS card

what do you mean by that?

how to check it?

[Kyrzacarias 1]

Hr block helped me.  They were ready to help and the process was quite easy. 

Good luck

[JeanneAdil 6,498]

14 hours ago, isamanda said:

what do you mean by that?

how to check it?

only the USC would know and have applied for a ITIN with your tax returns in the year you were married and filed as married either jointly or separate

[Wuozopo 4,293]

On 5/11/2021 at 9:18 PM, fsp said:

Do I have the responsibility to report the entire account, regardless of circumstances of how we got above the reporting threshold as a US citizen? 

Yes, your name is on the account in 2020 so report the highest balance of 2020 on your FBAR.

 

On 5/11/2021 at 9:18 PM, fsp said:

From my understanding, if I file MFJ, I would need to also file a W7 to obtain an ITIN for my spouse to opt-in to make my spouse a resident alien for tax purposes.

Yes she would need an ITIN. That does not make her a resident alien for tax purposes.  You opt in to that by writing a statement you each sign, which is attached to your paper return. See How to Make the Choice on this page https://www.irs.gov/individuals/international-taxpayers/nonresident-alien-spouse  Getting an ITIN also involves having a certified copy of her passport for ID purposes. You’ve run out of time to get that and all the signatures  required from her (tax return, statement electing to be resident for tax purposes, W7). You should file for an extension if you want to go the ITIN and joint filing route.

 

On 5/11/2021 at 9:18 PM, fsp said:

Also, since she is considered a resident alien for tax purposes, would she be required to report her individual bank accounts in the Philippines to FBAR?  

Yes, if the total of her accounts exceeds $10k, which they would since you’ve already stated one account meets that requirement. So all accounts, no matter how small. From FinCen:
Both spouses are required to file separate FBARs, and each spouse must report the entire value of the jointly owned accounts.

 

On 5/11/2021 at 9:18 PM, fsp said:

t I hit a portion about Community Property Tax, and have absolutely no idea what to do for this. Can anyone kindly explain?

I use TurboTax so not sure what H&R is saying specifically. Do you live in a community property state?

I believe they are discussing who claims what when two spouses in a community property state are filing MFS. You can ignore that because your wife is not filing a MFS return. It’s only when both spouses are filing separately. You claim and pay it all...whatever it is they are talking about. It would be things like earning interest on a joint bank account. Who puts the interest on their MFS return? In a community property state, you each report half on your Schedule B.
 

On 5/11/2021 at 9:18 PM, fsp said:

I guess the overall worry (aside from the tax issues of course) is if I incorrectly file my taxes, would that affect the petition at the NVC or at the U.S. embassy? Thank you again to any responses.

Nope. IRS and Immigration are separate parts of the government and don’t share info. The guys at immigration probably don’t know how to file taxes any better than you do. They won’t be auditing your tax return to see if it was accurate. They will only be looking for your income proof with Form I-864 (Affidavit of Support). 

Edited May 15, 2021 by Wuozopo

[fsp 0]

4 hours ago, Wuozopo said:

Yes, your name is on the account in 2020 so report the highest balance of 2020 on your FBAR.

 

Yes she would need an ITIN. That does not make her a resident alien for tax purposes.  You opt in to that by writing a statement you each sign, which is attached to your paper return. See How to Make the Choice on this page https://www.irs.gov/individuals/international-taxpayers/nonresident-alien-spouse  Getting an ITIN also involves having a certified copy of her passport for ID purposes. You’ve run out of time to get that and all the signatures  required from her (tax return, statement electing to be resident for tax purposes, W7). You should file for an extension if you want to go the ITIN and joint filing route.

 

Yes, if the total of her accounts exceeds $10k, which they would since you’ve already stated one account meets that requirement. So all accounts, no matter how small. From FinCen:
Both spouses are required to file separate FBARs, and each spouse must report the entire value of the jointly owned accounts.

 

I use TurboTax so not sure what H&R is saying specifically. Do you live in a community property state?

I believe they are discussing who claims what when two spouses in a community property state are filing MFS. You can ignore that because your wife is not filing a MFS return. It’s only when both spouses are filing separately. You claim and pay it all...whatever it is they are talking about. It would be things like earning interest on a joint bank account. Who puts the interest on their MFS return? In a community property state, you each report half on your Schedule B.
 

Nope. IRS and Immigration are separate parts of the government and don’t share info. The guys at immigration probably don’t know how to file taxes any better than you do. They won’t be auditing your tax return to see if it was accurate. They will only be looking for your income proof with Form I-864 (Affidavit of Support). 

Thank you so much for the very detailed response. You’ve given the most information, aside from what we’ve read. We’re going the MFS route with NRA status, because like you said we’ve run out of time for MFJ unless we file for an extension. For the fbar, the US citizen would only need to report that one joint account, and my spouse’s individual accounts can be left unreported since we're filing MFS?

 

[Wuozopo 4,293]

10 hours ago, fsp said:

Thank you so much for the very detailed response. You’ve given the most information, aside from what we’ve read. We’re going the MFS route with NRA status, because like you said we’ve run out of time for MFJ unless we file for an extension. For the fbar, the US citizen would only need to report that one joint account, and my spouse’s individual accounts can be left unreported since we're filing MFS?

 

No FBAR for her this year since she will not be brought into the category that  IRS/Treasury Dept refers to as “US person”.   You can amend your return later to take advantage of joint filing benefits once she arrives and gets a SSN. The whole ITIN thing from abroad gets to be a hassle.