Question about ITIN number

[EAbbas 213]

When we apply for the ITIN number to file jointly for taxes this year... one question keeps coming up and I keep searching is that my husband is paid from a karachi based company (no us funds and no us based company) and that since he doesnt make US money from a US company ... would we say that he made 0 income ?? Or do we have to show the rupees he made and is that taxable?

He doesn't make US funds from a US based company..

Confused for sure! Any help would be appreciated...

Edited November 3, 2011 by EAbbas

[Married2009 32]

I had to show my husband's Canadian income, and send it in with form 2555-EZ, Foreign Earned Income Exclusion. The rupees need to be converted to USD, based on what the exchange rate was for that year. (Around tax time, someone will post helpful stuff like where that can be found, I can't remember!)

Edit - You will send in the W-7, an accepted form of identification, your 1040 form, the form 2555-EZ,and your W-2, of course. You have to mail it in, and it takes 6 - 8 weeks, and that's not at tax time. It will take longer, the closer it is to April 15.

Edited November 3, 2011 by Married2009

[Jojo92122 1,924]

When we apply for the ITIN number to file jointly for taxes this year... one question keeps coming up and I keep searching is that my husband is paid from a karachi based company (no us funds and no us based company) and that since he doesnt make US money from a US company ... would we say that he made 0 income ?? Or do we have to show the rupees he made and is that taxable?

He doesn't make US funds from a US based company..

Confused for sure! Any help would be appreciated...

US taxpayers are taxed on their worldwide income no matter where it was earned and no matter what's it source.

Once your husband chooses to be taxed as a US taxpayer, his worldwide income is subject to US taxation. As the previous poster has pointed out, he includes his Indian income (converted from rupees to US dollars) and may be eligible for the Foreign Income Tax Exclusion (FITE). Under the FITE, his Indian income up to $92,900 would be excluded.

[EAbbas 213]

Thanks for the replies.........i just talked to irs and they said he wasnt eligible for itin number bcos hes eligible for a ssn with his visa but we went thru the questions and im eligible to still file head of household ....im losing my mind with all this

[Married2009 32]

Thanks for the replies.........i just talked to irs and they said he wasnt eligible for itin number bcos hes eligible for a ssn with his visa but we went thru the questions and im eligible to still file head of household ....im losing my mind with all this

If you are working taxes for 2011 - they won't give him an ITIN number until 2012. You will need to send in the app for ITIN (W-7), the approved identification, your 1040 for 2011, and your W-2. If he gets here before the end of 2011 (hopefully!!) you can still use (I think) the form 2555-EZ for exclusion of foreign income. PM me if you want to talk further.

[Dave&Roza 748]

The IRS is actually correct in this matter. Your husband should NOT file for an ITIN as he is eligible for a SSN. Go to the SSA and get a SSN and then file taxes using his SSN. If you apply and receive an ITIN, file taxes and then later apply and receive a SSN, the IRS MAY come back to haunt you as it states in the instructions for the ITIN that it is for people who are NOT eligible for a SSN but must file US income taxes.

You will claim the income and do the conversion based on the exchange rate published here. There is also the decision to claim your husband as a permentant resident for the entire year for tax purposes, but that does have an effect of what income is claimed and what deductions are allowed. This is a decision you will have to look at to see what method is least costly in terms of taxes paid.

Dave

[EAbbas 213]

Thanks Dave!!! I guess we will just have to wait to file jointly when he comes then.. if he comes prior to Dec 31 this year we will if not ill have to file head of household for 2011 i guess... Just trying to be sure im doing what needs to be done and doing it right not waiting until the last minute.

Just frustrating as the embassy always wants to see joint everything but until he has a SSN (when he gets here) he can't do much of anything at least I got him as paid on death on my financial things..

Edited November 4, 2011 by EAbbas

[rin and john 71]

Thanks Dave!!! I guess we will just have to wait to file jointly when he comes then.. if he comes prior to Dec 31 this year we will if not ill have to file head of household for 2011 i guess... Just trying to be sure im doing what needs to be done and doing it right not waiting until the last minute.

Just frustrating as the embassy always wants to see joint everything but until he has a SSN (when he gets here) he can't do much of anything at least I got him as paid on death on my financial things..

Even if your spouse resides overseas, you can file "married filing jointly" come next April. Rin and I married in October 2006, she came to USA in April 2007; for tax year 2006 we filed MFJ as it yielded the best return.