ITIN and tax questions

[EricLT 29]

To apply for ITIN, is the unexpired passport enough as a supporting document or I still need another document? I read you need at least two types of documents but then I read somewhere a passport is enough as a stand alone. Just want to confirm which is right. 

 

If I choose to file tax return with married filing separately, will my spouse need to file? She has zero income. I know we get a bigger deduction filing together but I need to file as soon as possible and don't want to wait for ITIN. Also will filing separately work on state return the same way as federal or is SSN/ITIN required? 

[HRQX 4,145]

25 minutes ago, EricLT said:

To apply for ITIN, is the unexpired passport enough as a supporting document or I still need another document?

Just the unexpired passport. https://www.ceibaphiladelphia.org/itin-program

Why apply with Ceiba?

Ceiba is a IRS Certifying Acceptance Agent (CAA), which means that Ceiba can verify your original documents (such as your passport) and send copies with your application, rather than the original. Ceiba is also the only community organization in Pennsylvania that does this service for free. 174 DIAMOND ST. PHILADELPHIA, PA 19122

Edited October 2, 2021 by HRQX

[top_secret 2,421]

29 minutes ago, EricLT said:

To apply for ITIN, is the unexpired passport enough as a supporting document or I still need another document? 

 

If I choose to file tax return with married filing separately, will my spouse need to file? She has zero income. I know we get a bigger deduction filing together but I need to file as soon as possible and don't want to wait for ITIN. Also will filing separately work on state return the same way as federal or is SSN/ITIN required? 

I would highly NOT recommend turning a passport over to the IRS while you are in the middle of an immigration process.  Many have had to wait 4 to 6 months to get their documents back due to IRS backlog and there is no visibility or way to check status or timetable while the passport is in IRS limbo.   It goes into a black hole for an indeterminant period of time and you just hope someday it will come back out.  But, yes, a passport IS valid as a sole standalone document.  What we did and a much better option is provided a copy of her passport certified by the issuing agency.  The certified passport copy was our only document.  Very easy to get in the Philippines.  I imagine other countries may vary wildly in how difficult it is to get a certified copy of a passport. 

 

 

You list California as state????  (or is that the service center)  With a very big disclaimer that "I am not a tax professional and I have no qualifications whatsoever to give tax advice".  We filed California State this year concurrently with our federal and W7.  My amateur reading of California tax law was that you simply must file the same status as you did on your federal return and you must attach a copy of your federal return.  I wrote "applying for ITIN" for her SS# on our 540, included the federal return and copy of the W7 and mailed it all in.  CA FTB processed it in 2 weeks and direct deposited the return promptly into my account.  So I would have to say my personal experience is that California FTB is incredibly easy and efficient dealing with the issue compared to the IRS.

Edited October 2, 2021 by top_secret

[HRQX 4,145]

16 minutes ago, top_secret said:

You list California as state????

OP listed Cherry Hill, NJ as the local USCIS office. The I-129F was processed at the California Service Center.

16 minutes ago, top_secret said:

What we did and a much better option is provided a copy of her passport certified by the issuing agency.

There also the following options: https://www.irs.gov/individuals/how-do-i-apply-for-an-itin

Option 2

Apply for an ITIN in-person using the services of an IRS-authorized Certifying Acceptance Agent. This will prevent you from having to mail your proof of identity and foreign status documents.

Option 3

Make an appointment at a designated IRS Taxpayer Assistance Center. This will also prevent you from having to mail your proof of identity and foreign status document 

After processing, the IRS will issue your ITIN through the mail.

Edited October 2, 2021 by HRQX

[seekingthetruth 1,246]

1 hour ago, EricLT said:

If I choose to file tax return with married filing separately, will my spouse need to file? She has zero income. I know we get a bigger deduction filing together but I need to file as soon as possible and don't want to wait for ITIN. Also will filing separately work on state return the same way as federal or is SSN/ITIN required? 

No, she would not need to file, but most likely, this option of MFS is going to cost you thousands of dollars.  Even if you file late and pay a small penalty, it would probably be well worth it to file MFJ.

 

Since the tax laws changed in 2017, most people take the standard deduction.  MFS is 12,400 and MFJ is 24,800.  If you have a lot of itemized deductions that total over 24,800, then MFS might be an option.

 

If you are in Cherry Hill and you are trying to meet the Oct. 15th deadline, and want to do the ITIN, you have plenty of time to go to the free acceptance agent in Philadelphia that HRQX mentioned.  They will do everything right there, give you the passport back, and mail your return in on time.  Call them first.

 

I am not a tax professional and this advice is based on my personal experience using an acceptance agent to get my wife's ITIN.  Saved me a lot of money!

[EricLT 29]

13 minutes ago, seekingthetruth said:

No, she would not need to file, but most likely, this option of MFS is going to cost you thousands of dollars.  Even if you file late and pay a small penalty, it would probably be well worth it to file MFJ.

 

Since the tax laws changed in 2017, most people take the standard deduction.  MFS is 12,400 and MFJ is 24,800.  If you have a lot of itemized deductions that total over 24,800, then MFS might be an option.

 

If you are in Cherry Hill and you are trying to meet the Oct. 15th deadline, and want to do the ITIN, you have plenty of time to go to the free acceptance agent in Philadelphia that HRQX mentioned.  They will do everything right there, give you the passport back, and mail your return in on time.  Call them first.

 

I am not a tax professional and this advice is based on my personal experience using an acceptance agent to get my wife's ITIN.  Saved me a lot of money!

I will never mail the passport. I would do in person or use h&r block. Does state  tax return allows me to file separately without my wife's SSN or itin? 

Edited October 2, 2021 by EricLT

[Wuozopo 4,293]

@EricLT

 

Your profile says K1 and you are asking about your wife so I assume she is now in the US. When did she arrive? A K1 is eligible for a SSN for a limited number of days. Did she try the Social Security office?

 

Filing joint is the way to go. If ITIN is the way you have to do it, you have to go to an IRS Taxpayer Assistance Center or an Acceptance Agent with your completed joint tax return, the ITIN application (Form W-7), and your wife in person with her passport. 
 

IRS Taxpayer Assistance Center  (Free)

600 Arch St.
Philadelphia, PA 19106 

Call for appointment 844-545-5640

 

Acceptance Agent

H&R BLOCK (ask the fee to certify passport for ITIN)

2000 Route 38
Suite 1813
Cherry Hill, NJ 08002
(856) 635-0525

 

CEIBA  (They advertise free. Ask if there’s a catch)

174 Diamond Street
Philadelphia, PA 19122 
(215) 634-7245

 

11 hours ago, EricLT said:

I need to file as soon as possible and don't want to wait for ITIN.

When you file the return with the ITIN application, you have filed on that date. You don’t wait on the ITIN before you can file.  They go together to Austin,TX which does all ITINs. They will process the ITIN, add it to the return, then process the return. 
 

[EricLT 29]

1 hour ago, Wuozopo said:

@EricLT

 

Your profile says K1 and you are asking about your wife so I assume she is now in the US. When did she arrive? A K1 is eligible for a SSN for a limited number of days. Did she try the Social Security office?

 

Filing joint is the way to go. If ITIN is the way you have to do it, you have to go to an IRS Taxpayer Assistance Center or an Acceptance Agent with your completed joint tax return, the ITIN application (Form W-7), and your wife in person with her passport. 
 

IRS Taxpayer Assistance Center  (Free)

600 Arch St.
Philadelphia, PA 19106 

Call for appointment 844-545-5640

 

Acceptance Agent

H&R BLOCK (ask the fee to certify passport for ITIN)

2000 Route 38
Suite 1813
Cherry Hill, NJ 08002
(856) 635-0525

 

CEIBA  (They advertise free. Ask if there’s a catch)

174 Diamond Street
Philadelphia, PA 19122 
(215) 634-7245

 

When you file the return with the ITIN application, you have filed on that date. You don’t wait on the ITIN before you can file.  They go together to Austin,TX which does all ITINs. They will process the ITIN, add it to the return, then process the return. 
 

We tried to get a SSN but it was too late when we realized it was an option before marriage. 

 

OK I thought i wait for the ITIN then efile, maybe I misunderstood. I read that I will need to send a copy of the w7 application to file a state return without the ITIN 

[HRQX 4,145]

2 hours ago, EricLT said:

OK I thought i wait for the ITIN then efile, maybe I misunderstood.

The way Wuozopo described it is the "proper way" since after the Austin Service Center issues the ITIN they send the return internally to the proper Center for processing. But I know someone who applied for her first ITIN at the end of April 2021 and received her ITIN on August 9, 2021 (the ITIN letter had the date of August 6). She couldn't figure out a way to only e-file the California return for free so on August 10 she tried e-filing both the federal and California returns with TurboTax Free File Alliance version and it worked (i.e. the federal was also accepted despite already sending a return with the W-7). So it looks like the internal IRS transfer can take a couple of business days because if it was fast her August return should have been quickly rejected because "the primary SSN or Taxpayer Identification Number (TIN) - or one of your Dependent's SSN, TIN - on the federal return is incorrect OR has already been used on a filed return with the IRS." 

Edited October 2, 2021 by HRQX

[SteveInBostonI130 3,450]

 

14 hours ago, EricLT said:

I will never mail the passport. I would do in person or use h&r block. Does state  tax return allows me to file separately without my wife's SSN or itin? 

 

I originally mailed the ITIN+Tax return with a certified copy of my wife's passport, but I made a mistake and they rejected it - I forgot to add my SSN, dummy me!

 

We only had the one certified copy, which they did not return right away.  Then I noticed that some of the local offices were opening after covid lockdown.  So we went to a local IRS office in Dec 2020 and filed it in-person.  The agent viewed my wife's passport, made a copy, marked something on the computer (I assume that the ID was verified?) and accepted our ITIN and tax return (to send it to Austin, I assume).

 

Here's the link for the local IRS office in Cherry Hill, NJ.  It's the first one in the table.

 

https://www.irs.gov/help/contact-my-local-office-in-new-jersey

 

If you click "services available", it shows that the office accepts/processes ITIN.

[Wuozopo 4,293]

3 hours ago, EricLT said:

OK I thought i wait for the ITIN then efile, maybe I misunderstood.

It’s all on paper. You can use software like TurboTax leaving her SSN spot blank and ignore the alerts that it’s missing. Then instead of efiling, print the return and both sign it. Prepare and sign the W7. Then go have one of those places certify her passport so you don’t have to mail the actual passport off to Austin. They will make a certified copy of her passport and send everything to Austin for you. That is your filing date. You will be notified of her ITIN number once it is assigned. 

[E&W 146]

4 hours ago, Wuozopo said:

It’s all on paper. You can use software like TurboTax leaving her SSN spot blank and ignore the alerts that it’s missing. Then instead of efiling, print the return and both sign it. Prepare and sign the W7. Then go have one of those places certify her passport so you don’t have to mail the actual passport off to Austin. They will make a certified copy of her passport and send everything to Austin for you. That is your filing date. You will be notified of her ITIN number once it is assigned. 

My husband and I did this exactly. We missed the window to get the SSN, so needed to get a ITIN. He filled the tax return out online, printed. We both signed. And I filled out the W7. We went to a certifying agent, they made a copy of my passport and took the filled out forms, sent them in for us. The only thing is that since I took my husbands last name, it didn't match up with the passport, and the acceptance agent forgot to also copy and sent in our marriage certificate. So we had to come in once again to give them a copy. But that solved the last name issue. Sadly, I am still waiting on the number, IRS is absolutely swamped. So you will have a wait on your hands.

[HRQX 4,145]

6 minutes ago, E&W said:

Sadly, I am still waiting on the number, IRS is absolutely swamped.

Did you receive your EAD? Because with the EAD you are eligible for SSN and thus no longer eligible for the ITIN: https://www.irs.gov/instructions/iw7 "Don’t complete Form W-7 if you have an SSN or if you’re eligible to get an SSN."

[Wuozopo 4,293]

2 hours ago, E&W said:

The only thing is that since I took my husbands last name, it didn't match up with the passport, and the acceptance agent forgot to also copy and sent in our marriage certificate. So we had to come in once again to give them a copy. But that solved the last name issue.

Good information. Thanks.

[E&W 146]

18 hours ago, HRQX said:

Did you receive your EAD? Because with the EAD you are eligible for SSN and thus no longer eligible for the ITIN: https://www.irs.gov/instructions/iw7 "Don’t complete Form W-7 if you have an SSN or if you’re eligible to get an SSN."

I have not received it yet, although the status online did say they are printing it since last week. There was no knowing when the EAD would be done, that's why we went with the ITIN. For a time it did seem like the ITIN would come sooner. But the agent forgetting to copy the wedding certificate got it delayed.