First year Filing confusion - Split/MFJ turbo tax

[Kyle6811 24]

 

We are filing MFJ and are trying to make sure we have everything covered in what is a pretty basic situation. Wondering if we can get any feedback to help us.

 

ME (USC Living in the US)

w2 wages - 

Standard deduction

 

Her (Resident of mexico NRA)

Has income from MX

Has an investment account

 

I've made it through but I'm confused. She has foreign income but i'm not sure if we need to include it since she is NRA.

 

 

[Redro 4,611]

Why not just file MFS? 
Does she have an ITIN already or are you going to apply for one? 
If you’re filing MFJ she should complete the 2555 to exclude her international income. 

Edited February 8 by Redro

[Kyle6811 24]

Just now, Redro said:

Why not just file MFS? 
Does she have an ITIN already or are you going to apply for one? 

MFJ results in a signifcantly larger return. We will be paper filing once finished to include the w7.

[Redro 4,611]

35 minutes ago, Kyle6811 said:

MFJ results in a signifcantly larger return. We will be paper filing once finished to include the w7.

Apply for ITIN

Make sure she files the 2555 so her foreign income is not counted. 

@JeanneAdil when you filed taxes before Adil came over, how did you manage it? 

[Kyle6811 24]

39 minutes ago, Redro said:

Apply for ITIN

Make sure she files the 2555 so her foreign income is not counted. 

@JeanneAdil when you filed taxes before Adil came over, how did you manage it? 

My understanding is to attach the w7 itin app with the return.

So our Fed return should include

 

1040

w7

2555

No Foreign asset FBAR Form needed as foreign assets are under 10,000

 

[Kyle6811 24]

9 hours ago, Kyle6811 said:

My understanding is to attach the w7 itin app with the return.

So our Fed return should include

 

1040

w7

2555

No Foreign asset FBAR Form needed as foreign assets are under 10,000

 

Amending this as it looks like if we file MFJ - we need to elect 6013g which we can use Foreign Tax credit 1116 to offset her income.

[JeanneAdil 6,492]

14 hours ago, Redro said:

Apply for ITIN

Make sure she files the 2555 so her foreign income is not counted. 

@JeanneAdil when you filed taxes before Adil came over, how did you manage it? 

Married 3/15/2010

returned to Moroc in Noverber 2010 and took the W7 with me for Adil to fill out

filed the W7 with original marriage certificate and certified copy with English translation of his National ID

 

U do have to paper file the 1040 as IRS wants original documents 

 

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

[JeanneAdil 6,492]

forgot to say

i got a POA from Adil to be able to sign his name to the  returns

and the W7 i took to moroc was 2009 but it gave me the info i needed to fill out the 2020 W7 form when IRS posted it

[Thunderbolt 172]

4 hours ago, JeanneAdil said:

forgot to say

i got a POA from Adil to be able to sign his name to the  returns

and the W7 i took to moroc was 2009 but it gave me the info i needed to fill out the 2020 W7 form when IRS posted it

How did you manage to deposit a check (return)  in the account without your husband's name on it?

When I did that the check didn't clear for 2-3 weeks and finally I went to the bank to check what's going on. They've told me that they can't deposit that check as it is with my and my wife's name. Deposited it to the other bank where we had joint account and the check cleared next day. 

I'm just thinking out loud. If your wife is in Mexico, and you don't have joint bank account, it may or may not cause problems for your returns. 

[JeanneAdil 6,492]

1 hour ago, Thunderbolt said:

How did you manage to deposit a check (return)  in the account without your husband's name on it?

When I did that the check didn't clear for 2-3 weeks and finally I went to the bank to check what's going on. They've told me that they can't deposit that check as it is with my and my wife's name. Deposited it to the other bank where we had joint account and the check cleared next day. 

I'm just thinking out loud. If your wife is in Mexico, and you don't have joint bank account, it may or may not cause problems for your returns. 

As  i said i got  a POA from Adil to do business in his name in the US

and after the ITIN and check went directly to my bank account

 

after adil received his ITIN in mail in Moroc,  he scanned a copy of it and i used this number to add him to my checking account

i had researched the federal banking rules and found out i could add him 

[Kyle6811 24]

8 hours ago, Thunderbolt said:

How did you manage to deposit a check (return)  in the account without your husband's name on it?

When I did that the check didn't clear for 2-3 weeks and finally I went to the bank to check what's going on. They've told me that they can't deposit that check as it is with my and my wife's name. Deposited it to the other bank where we had joint account and the check cleared next day. 

I'm just thinking out loud. If your wife is in Mexico, and you don't have joint bank account, it may or may not cause problems for your returns. 

I had not thought about that. Thank you. We do not have a joint account.

[Kyle6811 24]

@JeanneAdil @Thunderbolt

would the same problems apply to a direct deposit check?

[top_secret 2,417]

22 hours ago, Thunderbolt said:

How did you manage to deposit a check (return)  in the account without your husband's name on it?

 

I just filled out the direct deposit boxes on the 1040 with my bank account info.  No problem receiving it by direct deposit.  If you ever had a paper check you could also pretty easily deposit it with most bank's mobile apps these days.

[Thunderbolt 172]

I have no idea how it works, but since then we have direct deposit to joint account. 

The bank in question was Capital One. 

I would say check with your bank. Go to the branch and ask someone if you can deposit joint tax return check without having your wife on the account. 

 

Here is some answer found on google:

 

"You need to ask your bank for specifics, most have more stringent rules when it comes to tax checks, but generally so long as both parties have endorsed it, it it can be deposited into an account that has at least one of those parties, though some require it into an account with both on them.  Oct 29, 2023"

 

 

And regarding the direct deposit straight from IRS.gov

 

"Taxpayers should deposit refunds into U.S. bank accounts in their own name, their spouse's name or both. They should avoid making a deposit into accounts owned by others. Some banks require both spouses' names on the account to deposit a tax refund from a joint return."

Edited February 9 by Thunderbolt

[JeanneAdil 6,492]

On 2/9/2024 at 7:02 AM, Kyle6811 said:

@JeanneAdil @Thunderbolt

would the same problems apply to a direct deposit check?

the POA was sent in with paper returns so No,  they put the refund in my checking account

the POA was taken also to the bank for me to do banking and other business in the US in his name