Need to go ITIN route for 2014 taxes

[mcstorres 2]

I am the petitioner and my wife is the beneficiary. She is in the Philippines. I sent my AOS/IV using 2011-2013 Tax returns. Since the interview will be after April 15, 2015. I am looking into filing 2014 tax return but the problem is of course I don't have SSN for my wife. Now, I am looking into ITIN, I've filled up the Form w-7 and will file Married Filing Jointly. I have the following questions:

• What documents should I submit exactly with the Form W-7? I've read people sending passports? (The instructions a little confusing to me.)
• Do I have to file paper then? (I have tax accountant following up on me but she is also new to this as well.)

I would appreciate anyone who can help me with this.

[mcstorres 2]

bumpity bump

[Nich-Nick 3,353]

I am the petitioner and my wife is the beneficiary. She is in the Philippines. I sent my AOS/IV using 2011-2013 Tax returns. Since the interview will be after April 15, 2015. I am looking into filing 2014 tax return but the problem is of course I don't have SSN for my wife. Now, I am looking into ITIN, I've filled up the Form w-7 and will file Married Filing Jointly. I have the following questions:

• What documents should I submit exactly with the Form W-7? I've read people sending passports? (The instructions a little confusing to me.)
• Do I have to file paper then? (I have tax accountant following up on me but she is also new to this as well.)

I would appreciate anyone who can help me with this.

First off an I-864 signed and submitted before April 15 is supposed to be valid using 2013 as the latest tax return. If you had submitted it after April 15, then 2014 would be the latest.

Your tax return--Correct you need an ITIN for your wife if you want to file jointly. The ITIN application is mailed together with the paper tax return to a special filing location in Austin, TX. They process and issue the ITIN, put it on the tax return, then process the tax return.

Complicated identification requirements makes it more difficult to prepare the documentation that goes with the ITIN APPLICATION. A passport is the only stand alone document that can be used. But it must be the actual passport or a photocopy of it that has been verified. There are some international acceptance agents who can certify a photocopy of her passport. This is the list in the Philippines.

Jim Boyd Foundation

1925 MacArthur Highway

Balibago Angeles City 2009

Philippines

(6345) 888-2748

Robert L. Wolff *

Motor Paul Road, Talay

Dumaguete City,

Negros Oriental 6200

Philippines

(518) 328-6015

Michael Miller Brown

Pearl of the Orient Tower

1240 Roxas Boulevard

Suite 23K

Ermita, Manila 1000

Philippines

(63)(929) 754-4239

I read a thread where people were most favorable to the Jim Boyd Foundation.

If she could get to one of those places, she would still have to mail the certified passport photocopy to you. She would also have to sign the tax return because it is joint.

That's going to hard to pull off by April 15.

The other acceptable documents that can be combined as ID for the ITIN application are on page 3 of this instruction booklet for the ITIN application. http://www.irs.gov/pub/irs-pdf/iw7.pdf They can't be photocopies. They have to be the real thing or they have to be certified by an Acceptance Agent.

[mcstorres 2]

First off an I-864 signed and submitted before April 15 is supposed to be valid using 2013 as the latest tax return. If you had submitted it after April 15, then 2014 would be the latest.

Your tax return--Correct you need an ITIN for your wife if you want to file jointly. The ITIN application is mailed together with the paper tax return to a special filing location in Austin, TX. They process and issue the ITIN, put it on the tax return, then process the tax return.

Complicated identification requirements makes it more difficult to prepare the documentation that goes with the ITIN APPLICATION. A passport is the only stand alone document that can be used. But it must be the actual passport or a photocopy of it that has been verified. There are some international acceptance agents who can certify a photocopy of her passport. This is the list in the Philippines.

Jim Boyd Foundation

1925 MacArthur Highway

Balibago Angeles City 2009

Philippines

(6345) 888-2748

Robert L. Wolff *

Motor Paul Road, Talay

Dumaguete City,

Negros Oriental 6200

Philippines

(518) 328-6015

Michael Miller Brown

Pearl of the Orient Tower

1240 Roxas Boulevard

Suite 23K

Ermita, Manila 1000

Philippines

(63)(929) 754-4239

I read a thread where people were most favorable to the Jim Boyd Foundation.

If she could get to one of those places, she would still have to mail the certified passport photocopy to you. She would also have to sign the tax return because it is joint.

That's going to hard to pull off by April 15.

The other acceptable documents that can be combined as ID for the ITIN application are on page 3 of this instruction booklet for the ITIN application. http://www.irs.gov/pub/irs-pdf/iw7.pdf They can't be photocopies. They have to be the real thing or they have to be certified by an Acceptance Agent.

My wife will be sending me the physical national I.D. (Unified multi-purpose I.D.) from the Philippines and I have her original birth certificate. As far as I know, only one document must have the photo which is the I.D. in this case, and there should be at least two document i.e. birth cert + I.D. Will this work?

Also, then it will have to be a paper tax return? is that correct? Ofcourse, she is also sending form w7 (pre-filled) and form 1040 signed.

Is this a good way to go? Please reply asap.

EDIT: I sent my 2013 tax as my most recent, but the interview will be after April 15 so I have to obtain the 2014 tax return for the interview. plus if I get checklisted after april 15 I have to send them the new 2014 tax return.

I am not really sure if there is any other way we can file tax return as married. I tried married filing separately through e-file but the tax accountant is giving me $10,000 USD owe. lol I am not even sure if that is right, it's not like i'm not paying the government enough money already. :/

Edited March 28, 2015 by mcstorres

[Nich-Nick 3,353]

My wife will be sending me the physical national I.D. (Unified multi-purpose I.D.) from the Philippines and I have her original birth certificate. As far as I know, only one document must have the photo which is the I.D. in this case, and there should be at least two document i.e. birth cert + I.D. Will this work?

That seems correct to me.

Also, then it will have to be a paper tax return? is that correct? Ofcourse, she is also sending form w7 (pre-filled) and form 1040 signed.

Yes paper return with W7 mailed to Austin. She has to also sign the 1040 on a joint return. And because she is a non-resident alien, there is a statement to write electing for her to be treated as a resident for tax purposes. You both sign that. See this to know what the statement must include under "making the choice". http://www.irs.gov/Individuals/International-Taxpayers/Nonresident-Spouse-Treated-as-a-Resident

Also if she has income, it must be reported in US dollars on the joint return. Does she have income?

EDIT: I sent my 2013 tax as my most recent, but the interview will be after April 15 so I have to obtain the 2014 tax return for the interview. plus if I get checklisted after april 15 I have to send them the new 2014 tax return.

They shouldn't be asking for 2014 according to USCIS. I realize this is Dept of State at this point, but they often refer to INS for guidance on this form because it is an INS form. If you know others who interviewed at the same consulate last year just after tax day and had to provide another, then may be true. They can ask for another but if it was sufficent and correct the the time the form was submitted,it is supposed to be still considered sufficient.

I am not really sure if there is any other way we can file tax return as married. I tried married filing separately through e-file but the tax accountant is giving me $10,000 USD owe. lol I am not even sure if that is right, it's not like i'm not paying the government enough money already. :/

Married filing separate is going to be more expensive than filing jointly. Those are your two options. Sounds like you need to pay more in for 2015. You can get penalties tacked on for owing so much at the end. Increase your withholding or start mailing in quarterly estimate payments. The first one for next filing season (2015) goes in by April 15.

[mcstorres 2]

That seems correct to me.

Yes paper return with W7 mailed to Austin. She has to also sign the 1040 on a joint return. And because she is a non-resident alien, there is a statement to write electing for her to be treated as a resident for tax purposes. You both sign that. See this to know what the statement must include under "making the choice". http://www.irs.gov/Individuals/International-Taxpayers/Nonresident-Spouse-Treated-as-a-Resident

Also if she has income, it must be reported in US dollars on the joint return. Does she have income?

They shouldn't be asking for 2014 according to USCIS. I realize this is Dept of State at this point, but they often refer to INS for guidance on this form because it is an INS form. If you know others who interviewed at the same consulate last year just after tax day and had to provide another, then may be true. They can ask for another but if it was sufficent and correct the the time the form was submitted,it is supposed to be still considered sufficient.

Married filing separate is going to be more expensive than filing jointly. Those are your two options. Sounds like you need to pay more in for 2015. You can get penalties tacked on for owing so much at the end. Increase your withholding or start mailing in quarterly estimate payments. The first one for next filing season (2015) goes in by April 15.

She is unemployed at the moment since February of 2015. Also, is 'making the choice' a vital part of filing? or is it something that can be done after filing? I am working with a tax accountant (H&R block) and there was no mention of that said 'statement'.

[Nich-Nick 3,353]

She is unemployed at the moment since February of 2015. Also, is 'making the choice' a vital part of filing? or is it something that can be done after filing? I am working with a tax accountant (H&R block) and there was no mention of that said 'statement'.

Refer H&R Block to IRS publication 519. http://www.irs.gov/pub/irs-pdf/p519.pdf They don't know the details of filing with an international spouse. Even TurboTax knows that. A non-resident alien can not file a joint tax return with a USC unless they make the election. It is part of your tax return. Write it, send as an attachment in email so she can print and sign and mail back. I have a friend that signed her husband's name for 30 years. Not allowed but never questioned either.

What was her employment for the entire calendar year 2014? You only mention unemployed in 2015.

[mcstorres 2]

Refer H&R Block to IRS publication 519. http://www.irs.gov/pub/irs-pdf/p519.pdf They don't know the details of filing with an international spouse. Even TurboTax knows that. A non-resident alien can not file a joint tax return with a USC unless they make the election. It is part of your tax return. Write it, send as an attachment in email so she can print and sign and mail back. I have a friend that signed her husband's name for 30 years. Not allowed but never questioned either.

What was her employment for the entire calendar year 2014? You only mention unemployed in 2015.

I am not sure how to exactly write the 'statement'. She had job in the Philippines for year 2014 as an RN, she had income.

[Nich-Nick 3,353]

I am not sure how to exactly write the 'statement'. She had job in the Philippines for year 2014 as an RN, she had income.

Here's an example I have posted before:

Statement: Nonresident Spouse Treated as a Resident

We declare that on the last day of tax year 2012:

Mary Jo Smith is a U.S. citizen

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]_______________________________ 2/4/2013

Mary Jo Smith SSN: 123-45-6789

410 Happy St.

Jackson, WY 83001

___[sign here]_______________________________ 2/4/2012

Sam John Smith SSN: 987-65-4321

410 Happy St.

Jackson, WY 83001

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

Of course you will have to put "ITIN applied for" instead of SSN by her name and change the dates.

Her income from 2014 has to be income on your joint tax return. To file jointly, you must report worldwide income.

It goes on line 7 of the 1040 lumped with your income. (Convert to US dollars). Then you add Form 2555EZ to get the foreign income exclusion. It will be all of her 2014 income that is excluded. That appears as a negative number on line 21 of the 1040 and is subtracted out. The line 21 say "other income" and you write in Form 2555EZ To show where it came from.

So reported Line 7 and subtracted Line 21. Must have form 2555 or the shorter, easier 2555EZ as part of the tax return.

[mcstorres 2]

Here's an example I have posted before:

Statement: Nonresident Spouse Treated as a Resident

We declare that on the last day of tax year 2012:

Mary Jo Smith is a U.S. citizen

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]_______________________________ 2/4/2013

Mary Jo Smith SSN: 123-45-6789

410 Happy St.

Jackson, WY 83001

___[sign here]_______________________________ 2/4/2012

Sam John Smith SSN: 987-65-4321

410 Happy St.

Jackson, WY 83001

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

Of course you will have to put "ITIN applied for" instead of SSN by her name and change the dates.

Her income from 2014 has to be income on your joint tax return. To file jointly, you must report worldwide income.

It goes on line 7 of the 1040 lumped with your income. (Convert to US dollars). Then you add Form 2555EZ to get the foreign income exclusion. It will be all of her 2014 income that is excluded. That appears as a negative number on line 21 of the 1040 and is subtracted out. The line 21 say "other income" and you write in Form 2555EZ To show where it came from.

So reported Line 7 and subtracted Line 21. Must have form 2555 or the shorter, easier 2555EZ as part of the tax return.

Thank you for the sample letter!

I am seriously confuse on how Form 2555EZ works nor how to fill it up. Would H&R block help me with those? Does she have to sign anything in that form?

Do I need to have my wife's income tax statement? As far as converting to USD, how do I go about that?

I am having doubts if I would be able to pull this off by April 15. lol Is there any easy way to file as married without this much hassle? Just a question though.

[Nich-Nick 3,353]

Thank you for the sample letter!

I am seriously confuse on how Form 2555EZ works nor how to fill it up. Would H&R block help me with those? Does she have to sign anything in that form?

Do I need to have my wife's income tax statement? As far as converting to USD, how do I go about that?

I am having doubts if I would be able to pull this off by April 15. lol Is there any easy way to file as married without this much hassle? Just a question though.

I already said it would be difficult to pull off by April 15. You should have started two months ago.

Easy-Married Filing Separately.

H&R Block? Some of those people are trained a few days. Make them give you somebody that knows how to file taxes. It is part of the tax return. Not yours to fill out if they are doing your tax return. But it is the law if you file jointly. If they say differently, then they aren't competent and you shouldn't pay them.

Edited March 28, 2015 by Nich-Nick

[mcstorres 2]

I already said it would be difficult to pull off by April 15. You should have started two months ago.

Easy-Married Filing Separately.

H&R Block? Some of those people are trained a few days. Make them give you somebody that knows how to file taxes. It is part of the tax return. Not yours to fill out if they are doing your tax return. But it is the law if you file jointly. If they say differently, then they aren't competent and you shouldn't pay them.

So based on what you told me, I am only missing the following:

*The statement to be treated as a resident

*Her income to be included in the 1040 as part of filing and the form 2555EZ which should they (H&R block) be able to fill out.

[Nich-Nick 3,353]

So based on what you told me, I am only missing the following:

*The statement to be treated as a resident

*Her income to be included in the 1040 as part of filing and the form 2555EZ which should they (H&R block) be able to fill out.

And her signed application for the ITIN.

Her income is self reported. She needs no form like W2. You do the conversion rate. Oanda.com does historical conversion rates. It can be an average rate for the whole of 2014 or break it down by month earned...whatever. Just tell H&R my wife's foreign income was $xxxx.xx. She qualifies for the foreign income exclusion on the bonafide resident test. Look at form 2555EZ so you know the information they will need. Foreign address for her and her employer, for example. Give all that to them in writing so they have the info at hand.

They will have to print out the return rather than file it. Places like that are required to submit electronic returns, so ask if they can do that for you....print only.

Or go buy TurboTax CD and install it (better than online version) and do you own tax return. I suppose you have already paid H&R.

[mcstorres 2]

And her signed application for the ITIN.

Her income is self reported. She needs no form like W2. You do the conversion rate. Oanda.com does historical conversion rates. It can be an average rate for the whole of 2014 or break it down by month earned...whatever. Just tell H&R my wife's foreign income was $xxxx.xx. She qualifies for the foreign income exclusion on the bonafide resident test. Look at form 2555EZ so you know the information they will need. Foreign address for her and her employer, for example. Give all that to them in writing so they have the info at hand.

They will have to print out the return rather than file it. Places like that are required to submit electronic returns, so ask if they can do that for you....print only.

Or go buy TurboTax CD and install it (better than online version) and do you own tax return. I suppose you have already paid H&R.

She already sent the 1040 + w7 for the ITIN with signatures. She is working on looking to see how much she had earned on the year 2014. I also sent her the letter to treat as a resident for her to sign and bring back to me. Thank you so much!

I am very grateful to have talk to you. I appreciate your help very much. Again, Thank you!

[novedsac 355]

Be careful with H&R Block - especially those kiosks they place in WalMart and others high-traffic areas. Most of the 'accountants' are paper pushers with very minimal tax training … you are going to have an out-of-the ordinary return. It's not all that difficult after you've ready through the tax instructions IRS publishes and ask a few questions on a forum such as here, but don't expect the run-of-the-mill seasonal tax grunt to get it all right for you.

You could file a request for an automatic six month extension. This would need to be postmarked by April 15th. It gives you until October 15th to file the tax return, but it is NOT an extension to pay your taxes. Figure out the math to determine your tax and then decide if you will owe or receive a refund. If you owe, then pay by April 15th. You can pay estimated tax without filing a tax return. As long as 90% of your tax liability is paid by the 15th then you will not be assessed any penalties when you pay the remainder. This would give you ample time to sort the documentation and gather the original signatures for the tax return.