Bad Advice (State Taxes/N400) Need Help!

[*FishF00D* 45]

I used the services of a tax preparer (H&R Block) to file my taxes for 2021, and after we completed my federal tax return the advisor informed me that I didn't need to file state taxes because I was under the reporting threshold (New Jersey).

 

For the sake of being thorough before filing my N400 (regarding part 12 question 7: "Have you EVER not filed a Federal, state or local tax return since you became a lawful permanent resident?") I decided to check on state tax filing requirements just to be certain that I'm in good standing -- and found out that according to the NJ Division of Taxation website that my income for 2021 was over the reporting threshold.

 

It seems this means that I should have filed a State Tax return for 2021, and I'm assuming the best course of action is to make sure my State Taxes get filed before proceeding with my N400. I'm going to get in touch with the preparer/office today to find out how to amend this ASAP before filing my N400 -- but I'm really stressing out about how this could affect my application even if I manage to get it filed late.

Will I be in trouble with USCIS/immigration for not filing State Taxes on time even though I was told that I didn't have to/shouldn't by a tax advisor?

 

Also once I do get this situation resolved and/or file my state taxes, does that then mean I can select "No" as my response to N400 part 12 question 7 because I will have filed all possible tax returns - even if one is late?

 

Thank you so much, I'm beside myself with concern right now!

[Mike E 11,728]

23 minutes ago, *FishF00D* said:

Will I be in trouble with USCIS/immigration for not filing State Taxes on time even though I was told that I didn't have to/shouldn't by a tax advisor?

It doesn’t ask if you have ever filed late. So file. 

23 minutes ago, *FishF00D* said:

 

Also once I do get this situation resolved and/or file my state taxes, does that then mean I can select "No" as my response to N400 part 12 question 7 because I will have filed all possible tax returns - even if one is late?

I think once you  file NJ taxes  and pay all taxes owed you are good to file N-400.  
 

Filing N-400 while you owe taxes or are on a payment plan 

complicates the process. 

[*FishF00D* 45]

1 minute ago, Mike E said:

It doesn’t ask if you have ever filed late. So file. 

I think once you  file NJ taxes  and pay all taxes owed you are good to file N-400.  
 

Filing N-400 while you owe taxes or are on a payment plan 

complicates the process. 

 

Part of the reasoning the tax preparer gave me for not filing NJ State taxes was that based on my income earned in NJ I didn't owe the state any taxes, so at least there's that. However I'm now also realizing that he didn't file a return for me from my previous state of residence (California) -- I also made so little money in CA that it doesn't appear that I'd owe them taxes, but online it looks like they also still expect for people to file even if they don't owe anything.

 

 

[Mike E 11,728]

1. It is a de facto  requirement for LPRs to file income tax returns each year

 

2. never get advice on immigration laws from tax preparers 

 

3. I’ve never used a tax preparer. And I never well.  For every story I’ve heard of tax preparers saving a tax payer money that a tax preparation software missed, I hear of at least 10 where the tax preparer cost the tax payer money, gave advice that is tantamount to tax evasion, or screwed up a naturalization.  

[*FishF00D* 45]

5 minutes ago, Mike E said:

1. It is a de facto  requirement for LPRs to file income tax returns each year

 

2. never get advice on immigration laws from tax preparers 

 

3. I’ve never used a tax preparer. And I never well.  For every story I’ve heard of tax preparers saving a tax payer money that a tax preparation software missed, I hear of at least 10 where the tax preparer cost the tax payer money, gave advice that is tantamount to tax evasion, or screwed up a naturalization.  

 

I am aware that LPRs need to file income tax returns every year; I have always filed every year, on time. Every one of my tax returns has been filed by a tax preparer in an effort to ensure that my returns are filed accurately and completely as I don't have a comprehensive understanding of the US tax filing process. I had never had an issue with any of the previous preparers -- but this filing for 2021 was complicated since my residency was split between two states and my income was low.

 

Just to confirm with anyone else who happens to read this as I can't find any exact phrasing/directive about this online:
 

Do Permanent Residents of the United States ALWAYS have to file state taxes even if the state regulations stipulate that they meet exclusionary criteria? (Income, residency, etc)

[Bob in Boston 630]

Are you married? Did you file Jointly with your Husband? If you want someone good to file your taxes go with an accountant. H& R Block is a glorified version of Turbo Tax and the Preparers are not tax professionals. My sister was a cashier at a local grocery store and went to work with H&R for the tax season for a little extra money. they taught her how to use the software, that was it. More horror stories from that place.

[OldUser 5,161]

7 minutes ago, Bob in Boston said:

More horror stories from that place.

Agreed, the only time I used H&R block, I had issues with taxes with IRS coming back asking for more. The guy working there typed so quickly and used a calculator like a mad man.

 

Since then filing myself using TurboTax. No issues whatsoever for several years.

[Bob in Boston 630]

2 minutes ago, OldUser said:

No issues whatsoever for several years.

Using Turbo Tax since 1992, Never had a problem. Sold houses, 401K withdrawals, capital gains from rental properties and the list goes on. Never had a problem.

[JeanneAdil 6,286]

i went to H&R block when i wanted to do the ITIN / agent did not know how to do this / not in their system -along with a lot of other things not in their system

 

seems these "systems " do not ask for all information 

when an immigrant first moves to the US,  its worth it to use accountant or tax attorney for the first year

that gives u a running sample of proper returns 

[*FishF00D* 45]

48 minutes ago, *FishF00D* said:

Do Permanent Residents of the United States ALWAYS have to file state taxes even if the state regulations stipulate that they meet exclusionary criteria? (Income, residency, etc)

 

To clarify this question:

If an LPR is not required to file a state tax return based on their income, do they still need to file a return anyway in order to be in good standing with immigration/USCIS?

 

I've investigated my specific case in greater depth and it's been determined that I did NOT have any obligation to file state taxes in California or New Jersey -- because a significant portion of my income was non-taxable. It appears that attaching an explanation with my N-400 describing that I did not need to file state taxes (and do not owe any money) will sufficiently explain the circumstances - but I'd love to hear about other people's first hand experience in situations like these.

 

[JeanneAdil 6,286]

4 minutes ago, *FishF00D* said:

 

To clarify this question:

If an LPR is not required to file a state tax return based on their income, do they still need to file a return anyway in order to be in good standing with immigration/USCIS?

 

I've investigated my specific case in greater depth and it's been determined that I did NOT have any obligation to file state taxes in California or New Jersey -- because a significant portion of my income was non-taxable. It appears that attaching an explanation with my N-400 describing that I did not need to file state taxes (and do not owe any money) will sufficiently explain the circumstances - but I'd love to hear about other people's first hand experience in situations like these.

 

very reasonable since all that is required is federal tax transcripts 

[*FishF00D* 45]

1 hour ago, Bob in Boston said:

Are you married? Did you file Jointly with your Husband? If you want someone good to file your taxes go with an accountant. H& R Block is a glorified version of Turbo Tax and the Preparers are not tax professionals. My sister was a cashier at a local grocery store and went to work with H&R for the tax season for a little extra money. they taught her how to use the software, that was it. More horror stories from that place.

 

I am not currently married, I was filing as "single"

 

It seems like the advice given to me by the H&R Block guy was ultimately accurate -- it took me a long time to independently re-verify, so in retrospect he must have been pretty well-informed to have made this determination so quickly and confidently. That being said, in looking back at his credentials he has a B.S. in accounting but isn't a CPA -- so the advice about pursuing a certified accountant for future tax returns is duly noted!

Thank you!

[JeanneAdil 6,286]

22 minutes ago, *FishF00D* said:

 

I am not currently married, I was filing as "single"

 

It seems like the advice given to me by the H&R Block guy was ultimately accurate -- it took me a long time to independently re-verify, so in retrospect he must have been pretty well-informed to have made this determination so quickly and confidently. That being said, in looking back at his credentials he has a B.S. in accounting but isn't a CPA -- so the advice about pursuing a certified accountant for future tax returns is duly noted!

Thank you!

Most of us don't need this 

the first year ,  maybe yes  ,  especially when there is a tax treaty between the 2 counties

 

after that ,  only working in the US,  we do it ourselves unless owning a business

Business taxes are a whole other issue 

[Family 3,567]

9 hours ago, *FishF00D* said:

I've investigated my specific case in greater depth and it's been determined that I did NOT have any obligation to file state taxes in California or New Jersey -- because a significant portion of my income was non-taxable. It appears that attaching an explanation with my N-400 describing that I did not need to file state taxes (and do not owe any money) will sufficiently explain the circumstances - but I'd love to hear about other people's first hand experience in situations like these.

 

LPRs or USCs file taxes per IRS guidelines, therefore if IRS does not require filing , there is NO additional requirement imposed for/ by USCIS.

 

You are perfectly fine to file your N-400. You did not “fail” to file, you were not required to do so, but most importantly you do not owe BACK TAXES, which is what USCIS cares about.

[Family 3,567]

9 hours ago, *FishF00D* said:

appears that attaching an explanation with my N-400 describing that I did not need to file state taxes (and do not owe any money) will sufficiently explain the circumstances - but I'd love to hear about other people's first hand experience in situations like these.

Do NOT offer “ explanation “ in your N-400.

You can truthfully answer the question that you have never failed to file .

 

But you are welcome to send in/ upload IRS tax transcripts with your N-400 and rest assured you will not be asked or questioned about state taxes.