Tax Return

[Big Papa Zone 93]

OK, so I suspect quite a few folks will be in the same boat as me re 2013 tax returns, and that is:

Me - LPR, 10 year GC, applying for naturalization in May.

Her - UK citizen. Never lived here, never worked here. No SSN.

We are not in the midst of any CR1 process, indeed we haven't even made a decision on where we'll live in the future. I just want to get citizenship nailed down so we have the option of the US or the UK. I've always done my own returns using TurboTax and it's been simplicity itself. Now suddenly it's not so simple

I've done a little research on here and uncovered a few threads on the subject, but just want to be absolutely sure as to the correct legal course of action.

So:

Do I still file as married even though the wife's criteria is as described above?

If so, what am I supposed to put in the SSN field?

Do I retain the option to file as single?

If what I've read on the matter here is correct and I file as married, it would seem I can't file electronically - why not?

What the hell is a W7!????

Sorry if these questions seem somewhat simplistic, but I'm afraid this stuff still confuses me after having lived here for nearly five years!

Thanks.

[srloring13 12]

The W-7 is an application for ITIN. The new rules state you have to file when filing a return unless you meet one of the exceptions. You cant file electronically in the same year you are applying for an ITIN for your spouse if you want to file Married Filing Jointly. If you file Married Filing Separately you may be able to file electronically. You should not file as Single since you are married.

Here are a few links for the W7.

www.irs.gov/pub/irs-pdf/iw7.pdf

www.irs.gov/pub/irs-pdf/fw7.pdf

[konyk88 1]

To file W-7, you need to send ORIGINAL passport! We don't have US IRS office in Ukraine (of course :-)) And it's against Ukrainian law to send passport by mail. So I'm going to file my 2013 taxes as single (what else can I do without SNN or ITIN).... We are in F2A process and expecting interview in March, more than that we are required to bring recent Tax report to the interview...

I don't really know what to do...

[Nich-Nick 3,354]

OK, so I suspect quite a few folks will be in the same boat as me re 2013 tax returns, and that is:

Me - LPR, 10 year GC, applying for naturalization in May.

Her - UK citizen. Never lived here, never worked here. No SSN.

We are not in the midst of any CR1 process, indeed we haven't even made a decision on where we'll live in the future. I just want to get citizenship nailed down so we have the option of the US or the UK. I've always done my own returns using TurboTax and it's been simplicity itself. Now suddenly it's not so simple

I've done a little research on here and uncovered a few threads on the subject, but just want to be absolutely sure as to the correct legal course of action.

So:

Do I still file as married even though the wife's criteria is as described above?

If so, what am I supposed to put in the SSN field?

Do I retain the option to file as single?

If what I've read on the matter here is correct and I file as married, it would seem I can't file electronically - why not?

What the hell is a W7!????

Sorry if these questions seem somewhat simplistic, but I'm afraid this stuff still confuses me after having lived here for nearly five years!

Thanks.

Damian-- I sent you a PM.

[pob260 23]

OK, so I suspect quite a few folks will be in the same boat as me re 2013 tax returns, and that is:

Me - LPR, 10 year GC, applying for naturalization in May.

Her - UK citizen. Never lived here, never worked here. No SSN.

We are not in the midst of any CR1 process, indeed we haven't even made a decision on where we'll live in the future. I just want to get citizenship nailed down so we have the option of the US or the UK. I've always done my own returns using TurboTax and it's been simplicity itself. Now suddenly it's not so simple

I've done a little research on here and uncovered a few threads on the subject, but just want to be absolutely sure as to the correct legal course of action.

So:

Do I still file as married even though the wife's criteria is as described above?

If so, what am I supposed to put in the SSN field?

Do I retain the option to file as single?

If what I've read on the matter here is correct and I file as married, it would seem I can't file electronically - why not?

What the hell is a W7!????

Sorry if these questions seem somewhat simplistic, but I'm afraid this stuff still confuses me after having lived here for nearly five years!

Thanks.

Do I still file as married even though the wife's criteria is as described above?

You have only two options: Married filing jointly ( MFJ) and Married filing separately( MFS): Generally a SSN or ITIN number is needed for your spouse to efile under MFJ and MFS

If so, what am I supposed to put in the SSN field?

You can file your 2013 taxes with an application for ITIN number ( there are some criteria which need to be met and also some documents which needs to be mailed along )

I personally chose to paper file(as that was the only option) and chose MFS (on the SSN field I handwrote "NRA" for Non Resident Alien). Reason being I did not have the necessary paperwork to apply ITIN. I checked my transcript from IRS and it does show MFS. So I guess that's acceptable to IRS. However I intent to amend it to MFJ once my spouse is here and has her SSN.

Do I retain the option to file as single?

No you can't file as single per tax law and advise otherwise. Could have some explanation to do down the road(at interview when they review your tax return ..unlikely but possible)

If what I've read on the matter here is correct and I file as married, it would seem I can't file electronically - why not?

Since you don't have a SSN or ITIN number for your spouse yet you cannot efile (SSN/ITIN number are mandatory for spouse for the tax software)

What the hell is a W7!????

Application to get ITIN number (so you can efile your taxes electronically, ITIN number is only for tax purposes).

Edited January 18, 2014 by pob260

[Big Papa Zone 93]

OK, so after a lot of faffing around with transatlantic mailing & IRS office visits, I have the following prepared:

One federal tax return, married filing jointly.

One MO state tax return, married filing jointly.

One completed W-7 form signed and dated by the wife.

The wife's U.K. passport.

So I'm good to mail this, yes? Or have I missed anything?

[Nich-Nick 3,354]

OK, so after a lot of faffing around with transatlantic mailing & IRS office visits, I have the following prepared:

One federal tax return, married filing jointly.

One MO state tax return, married filing jointly.

One completed W-7 form signed and dated by the wife.

The wife's U.K. passport.

So I'm good to mail this, yes? Or have I missed anything?

There is a statement to write and both sign electing for her to be treated as a resident alien for tax purposes. Got that?

You included her UK income and did the Form 2555 or 2555EZ?

You know you mail it to an address in Austin, TX, not your regular filing address?

Or you can turn it all in at your MO IRS office so they verify her passport and send the rest on for you. Then her passport doesn't have to make the trip to TX.

No clue about state income tax. We don't have it.

[Big Papa Zone 93]

There is a statement to write and both sign electing for her to be treated as a resident alien for tax purposes. Got that?

*sigh* No, I don't.

You included her UK income and did the Form 2555 or 2555EZ?

Nope. Because when the bloke at H & R Block entered that income, my tax return of nearly $3,000 (I always claim zero exemptions to ensure I get a refund and, more importantly, I don't end up owing the IRS anything) turned into me owing THEM $1,800, which is clearly wrong so I had him take her income out.

You know you mail it to an address in Austin, TX, not your regular filing address?

Or you can turn it all in at your MO IRS office so they verify her passport and send the rest on for you. Then her passport doesn't have to make the trip to TX.

Actually, her passport does have to make the trip to TX - my local IRS office isn't a verification center, and the nearest one's in Minneapolis.

So, so weary of this #######.

[Nich-Nick 3,354]

So, so weary of this #######.

H&R Block is sometimes ####### at knowing anything about foreign income exclusion. If you don't include worldwide income, then you have to file married filing separately. Sending you a PM.

Copy / paste of a sample I posted before--

Statement: Nonresident Spouse Treated as a Resident

We declare that on the last day of tax year 2013:

Mary Jo Smith is a U.S. citizen (but you put "US Permanent Resident" here, DamIan)

Sam John Smith is a nonresident alien

Mary Jo Smith and Sam John Smith are married.

We choose to be treated as U.S. residents for the entire tax year.

___[sign here]_______________________________ 2/4/2014

Mary Jo Smith SSN: 123-45-6789

410 Happy St.

Jackson, WY 83001

___[sign here]_______________________________ 2/4/2014

Sam John Smith SSN: 987-65-4321. (and put ITIN pending for your wife, Damian. UK address)

410 Happy St.

Jackson, WY 83001

- - - - - - - - - - - -

[Papaya07 3]

I am in kind of similar boat, but my wife has her SSN as she was here before marriage for her studies. However, little confused on her income abroad. She paid her taxes in India. Trying to get all the opinions before filing our taxes this year. Any advice will help

[Nich-Nick 3,354]

This is from Publication 519 US Tax Guide for Aliens

Page 9

Nonresident Spouse Treated as a Resident

If, at the end of your tax year, you are married and one spouse is a U.S. citizen or a resident alien and the other spouse is a nonresident alien, you can choose to treat the nonresident spouse as a U.S. resident. This includes situa- tions in which one spouse is a nonresident alien at the beginning of the tax year, but a resident alien at the end of the year, and the other spouse is a nonresident alien at the end of the year.

If you make this choice, you and your spouse are treated for income tax purposes as residents for your entire tax year. Neither you nor your spouse can claim under any tax treaty not to be a U.S. resident. You are both taxed on worldwide income. You must file a joint income tax return for the year you make the choice, but you and your spouse can file joint or separate returns in later years.

How To Make the Choice

Attach a statement, signed by both spouses, to your joint return for the first tax year for which the choice applies. It should contain the follow- ing information.

A declaration that one spouse was a non- resident alien and the other spouse a U.S. citizen or resident alien on the last day of your tax year, and that you choose to be treated as U.S. residents for the entire tax year.

The name, address, and identification number of each spouse. (If one spouse died, include the name and address of the person making the choice for the de- ceased spouse.)

From this IRS page http://www.irs.gov/Individuals/International-Taxpayers/Foreign-Earned-Income-Exclusion

If you are a U.S. citizen or a resident alien of the United States and you live abroad, you are taxed on your worldwide income. However, you may qualify to exclude from income up to an amount of your foreign earnings that is adjusted annually for inflation ($91,500 for 2010, $92,900 for 2011, $95,100 for 2012, and $97,600 for 2013). In addition, you can exclude or deduct certain foreign housing amounts.

So by making the election for the wife to be treated as a "resident alien" then she is a resident alien to the IRS and is eligible to exclude $97,600 of her foreign income. That is form 2555 or 2555EZ. Your report it, then exclude it. It shows up on line 7 as income. It is excluded (shows as a negative number) on Line 21 of the 1040 tax return and is subtracted out before Adjusted Gross Income, line 37. You will not be paying full tax to both countries.

Another option is taking the foreign tax credit. Pick foreign income exclusion or foreign tax credit, but not both.

Another option is don't file a joint return. File Married filing Separately. She files nothing.

Pick the one that gives you the most money, but joint is almost always better than married separately.

Edited February 18, 2014 by Nich-Nick

[Big Papa Zone 93]

This is from Publication 519 US Tax Guide for Aliens

Page 9

Nonresident Spouse Treated as a Resident

If, at the end of your tax year, you are married and one spouse is a U.S. citizen or a resident alien and the other spouse is a nonresident alien, you can choose to treat the nonresident spouse as a U.S. resident. This includes situa- tions in which one spouse is a nonresident alien at the beginning of the tax year, but a resident alien at the end of the year, and the other spouse is a nonresident alien at the end of the year.

If you make this choice, you and your spouse are treated for income tax purposes as residents for your entire tax year. Neither you nor your spouse can claim under any tax treaty not to be a U.S. resident. You are both taxed on worldwide income. You must file a joint income tax return for the year you make the choice, but you and your spouse can file joint or separate returns in later years.

How To Make the Choice

Attach a statement, signed by both spouses, to your joint return for the first tax year for which the choice applies. It should contain the follow- ing information.

A declaration that one spouse was a non- resident alien and the other spouse a U.S. citizen or resident alien on the last day of your tax year, and that you choose to be treated as U.S. residents for the entire tax year.

The name, address, and identification number of each spouse. (If one spouse died, include the name and address of the person making the choice for the de- ceased spouse.)

From this IRS page http://www.irs.gov/Individuals/International-Taxpayers/Foreign-Earned-Income-Exclusion

If you are a U.S. citizen or a resident alien of the United States and you live abroad, you are taxed on your worldwide income. However, you may qualify to exclude from income up to an amount of your foreign earnings that is adjusted annually for inflation ($91,500 for 2010, $92,900 for 2011, $95,100 for 2012, and $97,600 for 2013). In addition, you can exclude or deduct certain foreign housing amounts.

So by making the election for the wife to be treated as a "resident alien" then she is a resident alien to the IRS and is eligible to exclude $97,600 of her foreign income. That is form 2555 or 2555EZ. Your report it, then exclude it. It shows up on line 7 as income. It is excluded (shows as a negative number) on Line 21 of the 1040 tax return and is subtracted out before Adjusted Gross Income, line 37. You will not be paying full tax to both countries.

Another option is taking the foreign tax credit. Pick foreign income exclusion or foreign tax credit, but not both.

Another option is don't file a joint return. File Married filing Separately. She files nothing.

Pick the one that gives you the most money, but joint is almost always better than married separately.

Perfectly clear. So why do the tax "experts" at the likes of H&R Block not know about it? Clowns. SO going back to their office today with my stuff and making them fix it!!!

[Big Papa Zone 93]

OK, so here's the statement letter I'll be sending to the IRS asking for both my non-resident alien wife and I to be considered residents for the 2013 tax year (all personal/identifying information obviously altered to fictitious.) Look OK?

David Bollocks

3500 Imaginary St

St Nowhere, MO 66666

02/28/2014

To Whom It May Concern:

This statement applies to the following individuals:

David Bollocks

3500 Imaginary St

St Nowhere, MO 66666

SSN: 123-45-6789

Jane Bollocks

17a Madeup Rd

Sheffield, S28 5FF

United Kingdom

I, David Bollocks, hereby confirm that I was a legal permanent resident of the United States on the last day of the 2013 tax year.

I also confirm that my wife, Jane Bollocks, was a non-resident alien on the last day of the 2013 tax year.

We both hereby choose to be treated as U.S. residents for the entire year.

Sincerely

David Bollocks:

Jane Bollocks:

[Nich-Nick 3,354]

Yep, that covers it.

[Big Papa Zone 93]

An update to this thread, and a reminder as to why one should periodically check back on government websites for updates. It would seem that, as of March 31st, there are a whole slew of IRS offices that will become verification centers - including one in Kansas City! Hurrah for not having to make a 12 hour round trip to Minneapolis!

Just to clarify here, not all IRS offices (or Taxpayer Assistance Centers as the feds like to call them) offer a document verification service. That is to say a service whereby an IRS agent will verify the documentation of the non-resident spouse in your presence, and return said documentation to you, thus voiding the necessity to have it sent to the Austin, TX office along with the W-7 form and the tax return.

Here's the updated list:

http://www.irs.gov/uac/TAC-Locations-Where-In-Person-Document-Verification-is-Provided