ITIN application was rejected--what next?

[YoungRL 4]

Discouragingly, the application I submitted to get my spouse an ITIN was rejected.  Tomorrow I will be calling the number listed on the notice I got in the mail, but I don't know how much I'll be able to find out from that, so I'm hoping someone here may be able to help.  To begin, I have applied for the ITIN so I can include it on my 2016 taxes so I can provide those returns with my NVC packet.

 

My questions:

 

I only received the notice that the application was rejected--I did not receive my spouse's passport back.  Are they mailing that separately?

 

The notice includes a list titled "What you need to do" and one of the items says "Send us a completed and signed US federal income tax return."  Whose tax return do they need, and from when?  Obviously the application is in my spouse's name, so do they need a tax return from him?  He doesn't live in the US and has no US income; additionally, I can't send them a completed US tax return without the ITIN.  If they need my tax return, again, I can't send them a 2016 tax return without the ITIN, and if they need a past one, which one?  I wasn't looking to get the ITIN to amend a previous return (I'll do that in future, but for right now, I just need the ITIN!).

 

If anyone can offer any guidance, that would be much appreciated.  If you need any other details, please let me know and I'll do my best to provide them!

[Denys/Alba/Yanes 10]

I did the same process to get my wife ITIN,  what you need to send is 

2016 income tax paperwork with both signatures ( mine and hers ) 

Passport to proof the aplicant identity

And a letter asking the Irs to treat you both as a us resident for taxing purpose dated full name of the us citizen social security number address and signed , include you spouse info as well instead of SSN ad the passport number but be sure to signed all the documents I got her ITIN letter in 6 weeks 

[YoungRL 4]

Thanks for replying!

 

I filed my 2015 taxes as married, filing separately without an ITIN listed for him, because we didn't want to bother with it and he's not in the US.  He did not file taxes (no income).

 

Do I need have a tax return in order to get an ITIN, then?  Because if that's what I need to do to get one, then it's looking like I can't.  And then I'm not sure how to proceed on doing my 2016 taxes.

[Wuozopo 4,285]

3 hours ago, YoungRL said:

Thanks for replying!

 

I filed my 2015 taxes as married, filing separately without an ITIN listed for him, because we didn't want to bother with it and he's not in the US.  He did not file taxes (no income).

 

Do I need have a tax return in order to get an ITIN, then?  Because if that's what I need to do to get one, then it's looking like I can't.  And then I'm not sure how to proceed on doing my 2016 taxes.

The procedure is gather everything for the ITIN. Prepare your joint tax return leaving the SSN/ITIN blank. Print it. Both of you sign it. Mail everything to the center in Austin, TX. They process the ITIN, add it to your tax return, then process the tax return.  And because your wife is a non-resident alien, include at the end of your tax return a letter or statement as YoungRL described above. You both sign that as well.

 

from the IRS.gov website:

 

How do I apply for an ITIN?
Use the latest revision of Form W-7, Application for IRS Individual Taxpayer Identification Number to apply. Attach a valid federal income tax return, unless you qualify for an exception, and include your original proof of identity or copies certified by issuing agency and foreign status documents.

Because you are filing your tax return as an attachment to your ITIN application, you should not mail your return to the address listed in the Form 1040, 1040A or 1040EZ instructions. Instead, send your return, Form W-7 and proof of identity and foreign status documents to:

     Internal Revenue Service
     Austin Service Center
     ITIN Operation
     P.O. Box 149342
     Austin, TX 78714-9342

You may also apply using the services of an IRS-authorized Acceptance Agent or visit some key IRS Taxpayer Assistance Center in lieu of mailing your information to the IRS in Austin. Taxpayer Assistance Centers (TACs) in the United States provide in-person help with ITIN applications on an appointment basis only. The IRS's ITIN Unit in Austin issues all numbers through the mail.

Edited April 24, 2017 by Wuozopo

[YoungRL 4]

11 minutes ago, Wuozopo said:

The procedure is gather everything for the ITIN. Prepare your joint tax return leaving the SSN/ITIN blank. Print it. Both of you sign it. Mail everything to the center in Austin, TX. They process the ITIN, add it to your tax return, then process the tax return.  And because your wife is a non-resident alien, include at the end of your tax return a letter or statement as YoungRL described above. You both sign that as well.

 

from the IRS.gov website:

 

How do I apply for an ITIN?
Use the latest revision of Form W-7, Application for IRS Individual Taxpayer Identification Number to apply. Attach a valid federal income tax return, unless you qualify for an exception, and include your original proof of identity or copies certified by issuing agency and foreign status documents.

Because you are filing your tax return as an attachment to your ITIN application, you should not mail your return to the address listed in the Form 1040, 1040A or 1040EZ instructions. Instead, send your return, Form W-7 and proof of identity and foreign status documents to:

     Internal Revenue Service
     Austin Service Center
     ITIN Operation
     P.O. Box 149342
     Austin, TX 78714-9342

You may also apply using the services of an IRS-authorized Acceptance Agent or visit some key IRS Taxpayer Assistance Center in lieu of mailing your information to the IRS in Austin. Taxpayer Assistance Centers (TACs) in the United States provide in-person help with ITIN applications on an appointment basis only. The IRS's ITIN Unit in Austin issues all numbers through the mail.

This is very helpful, thank you.  I guess I have to file taxes the old-fashioned way, then.  I was trying to use TurboTax but it obviously won't let you progress if you can't provide a SSN or ITIN for your spouse.  My only other question is, where is his passport?  Are they going to be mailing it back, or are they hanging onto it, or what?

[Wuozopo 4,285]

Typically passports always come back separately, for instance when you mail off for a renewal the new and old aren't sent back together. So maybe that is the case with the IRS and it will come in a few days. Did you send your application to Austin? You might try making some phone calls to the IRS to find out if they are holding it while you submit your tax return.

 

Meanwhile you need your spouse's signature on the election to be treated as a resident alien and on the 1040. A non-resident can't file a joint 1040 except when married to a US citizen and both give a written statement electing to be treated as a resident for tax purposes. Also if he earned any income in 2016, it must be reported on the joint return no matter if it was earned in another country. Did he have income?

[YoungRL 4]

On 4/24/2017 at 5:17 AM, Wuozopo said:

Typically passports always come back separately, for instance when you mail off for a renewal the new and old aren't sent back together. So maybe that is the case with the IRS and it will come in a few days. Did you send your application to Austin? You might try making some phone calls to the IRS to find out if they are holding it while you submit your tax return.

 

Meanwhile you need your spouse's signature on the election to be treated as a resident alien and on the 1040. A non-resident can't file a joint 1040 except when married to a US citizen and both give a written statement electing to be treated as a resident for tax purposes. Also if he earned any income in 2016, it must be reported on the joint return no matter if it was earned in another country. Did he have income?

Thank you so much for your response and I'm sorry for the delay in responding on my end. We did send the application to Austin.

 

And yes, he did have income in his home country and he filed his taxes there. I was under the impression that we could request an ITIN for him, have one assigned, and I could use it to file a "married, filing separately" return on my own. (I was trying to use TurboTax, which normally is great, but this year it won't let you complete that type of return without a spousal SSN or ITIN. Oops, I see I already mentioned that in a previous post.)

 

So, if I'm understanding this correctly, the only way to get an ITIN is to complete and sign a joint tax return, reporting and paying taxes on his foreign income as if it were earned in the US?

Edited April 27, 2017 by YoungRL

[Wuozopo 4,285]

5 hours ago, YoungRL said:

 

So, if I'm understanding this correctly, the only way to get an ITIN is to complete and sign a joint tax return, reporting and paying taxes on his foreign income as if it were earned in the US?

No, but I don't have time to answer further now.  Will explain later.

[YoungRL 4]

7 minutes ago, Wuozopo said:

No, but I don't have time to answer further now.  Will explain later.

Thank you so much, I appreciate all of your help!

[Jojo92122 1,924]

The only way to get an ITIN is to file a tax return.  You can not file for the ITIN alone without filing a tax return.

 

Your spouse must elect to be treated as a US resident when filing his tax return.  Your spouse will qualify for the Foreign Earned Income Exclusion of $100,000.  If his wages are less than $100,000, then he owes no US taxes.  Income that don't come from wages are taxable.

[Wuozopo 4,285]

13 hours ago, YoungRL said:

 

 

And yes, he did have income in his home country and he filed his taxes there. I was under the impression that we could request an ITIN for him, have one assigned, and I could use it to file a "married, filing separately" return on my own. (I was trying to use TurboTax, which normally is great, but this year it won't let you complete that type of return without a spousal SSN or ITIN. Oops, I see I already mentioned that in a previous post.)

 

So, if I'm understanding this correctly, the only way to get an ITIN is to complete and sign a joint tax return, reporting and paying taxes on his foreign income as if it were earned in the US?

 

I did not know you were trying to file Married Filing Separately. Ignore my info about a statement and tax return signed by your spouse if you are not filing jointly.

 

Correct TurboTax won't say you are complete without that number. If you can get everything else correct, ignoring the error about the SSN/ITIN field and print a return, you have what you need to paper file to Austin. (I don't know if online TurboTax lets you print whenever you want to. The software version allows it) I don't see why IRS wouldn't process the ITIN then complete the ITIN field you left blank on the MFS return you mailed them. It's a return. It requires an ITIN. 

 

BUT I am almost certain that you would have a smaller tax (bigger refund?) if you filed a joint return.  And you have already done the hard part that turns people away. You got your spouse's passport and mailed it off to Austin. At least start again and try MFJ for comparison.  There is Form 2555 or 2555EZ that is for Foreign Earned Income Exclusion. TurboTax may not offer the shorter EZ version. But you are not going to pay both UK and US taxes on the same money. You report the foreign income on line 7 (added to yours), but then exclude it on Line 21 of the Form 1040. Your tax is calculated where the amount of tax the foreign income  would have been taxed is deducted off your final tax amount.  There are many threads talking about filing jointly with a foreign spouse newly arrived who had foreign income part of the year. Same thing for you but your spouse has not arrived. The way I explained may be rubbish, but I hope it helps.

 

forgot to say, the foreign income is Jan-Dec, not the UK tax year and you don't have to document with any form like a UK version of our W2. Nothing "official" reporting the foreign is required to go with it be sure to convert £ earned to $ for the TAX RETURN.

Edited April 28, 2017 by Wuozopo

[YoungRL 4]

On 4/27/2017 at 11:32 PM, Wuozopo said:

 

I did not know you were trying to file Married Filing Separately. Ignore my info about a statement and tax return signed by your spouse if you are not filing jointly.

 

Correct TurboTax won't say you are complete without that number. If you can get everything else correct, ignoring the error about the SSN/ITIN field and print a return, you have what you need to paper file to Austin. (I don't know if online TurboTax lets you print whenever you want to. The software version allows it) I don't see why IRS wouldn't process the ITIN then complete the ITIN field you left blank on the MFS return you mailed them. It's a return. It requires an ITIN. 

 

BUT I am almost certain that you would have a smaller tax (bigger refund?) if you filed a joint return.  And you have already done the hard part that turns people away. You got your spouse's passport and mailed it off to Austin. At least start again and try MFJ for comparison.  There is Form 2555 or 2555EZ that is for Foreign Earned Income Exclusion. TurboTax may not offer the shorter EZ version. But you are not going to pay both UK and US taxes on the same money. You report the foreign income on line 7 (added to yours), but then exclude it on Line 21 of the Form 1040. Your tax is calculated where the amount of tax the foreign income  would have been taxed is deducted off your final tax amount.  There are many threads talking about filing jointly with a foreign spouse newly arrived who had foreign income part of the year. Same thing for you but your spouse has not arrived. The way I explained may be rubbish, but I hope it helps.

 

forgot to say, the foreign income is Jan-Dec, not the UK tax year and you don't have to document with any form like a UK version of our W2. Nothing "official" reporting the foreign is required to go with it be sure to convert £ earned to $ for the TAX RETURN.

Thank you so much for all of your help, Wuozopo!  I appreciate your taking the time to assist.  In the end I decided the most expedient way forward, based on our circumstances, is for me to file separately on paper.  He'll be here for good in 2018 and we'll look into taking my tax returns for the past couple of years into a professional to see about amending them, but as for now we'll leave it.

 

Thanks again!  This is all really good information and I hope it may be useful for other members down the line; I know I will be referring to it in a guide I am writing for another website I frequent.