To W-7 or not to W-7

[Guest pushbrk]

I think I am going to run the numbers on filing single in '05 and see how much different the cost is.

 

My wife has never been here, so she has no other status than non-resident alien.  I told her to call Shemian's GZ consulate and inquire about getting a notarized copy of her passport for tax purposes.

 

I read the W-7 instructions fully, and I didn't see where a declaration letter was needed.  Please tell me on the W-7 instructions where this is listed as a requirement.  If I give them a notarized copy of her passport, then no other documentation is needed (says so in bold, no less).

 

So, I figure I will send them the passport copy, W-7, and 1040, and hope I don't get audited.  I keep all records for 7 years, and this is the first year I did my own taxes. 

 

She is listed on the tax forms as 'student' to keep it simple.

 

I have a couple of weeks to get this sorted out while I wait for the forms to get to China and back.  Thank God I didn't ship DHL or they'd be in customs well past April 15th.

192307[/snapback]

The declaration isn't directly connected with the W-7. It's for the 1040. You can do the W-7 regardless of how you file.

 

Another example would be somebody who married and got their SSN in the same year, 2005. They wouldn't need a W-7 at all but would still declare their choice to treat the spouse as a US resident for tax purposes.

192316[/snapback]

So is this declaration something as simple as:

 

To whom it may concern:

 

I would like to declare my choice to treat my spouse as a US resident for tax purposes.

 

Yours,

 

 

 

Or does it need to be more verbose?

192321[/snapback]

Slightly more verbose.

 

The following instructions are from IRS Publication 519, page 10.

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 following 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.

[johnxiaoying]

Check out this old thread: http://candleforlove.com/forums/index.php?showtopic=7666&hl=

[mercator]

According to appendix A of pub 519:

 

http://www.irs.gov/publications/p519/index.html

 

This appendix contains the statements nonresident alien students must file with Form 8233, Exemption From Withholding on Compensation for Independent (and Certain Dependent) Personal Services of a Nonresident Alien Individual, to claim a tax treaty exemption from withholding of tax on compensation for dependent personal services. For treaty countries not listed, attach a statement in a format similar to those for other treaties. See chapter 8 for more information on withholding.

 

Appendix B is for teachers and researchers statements.

 

What chapter and section are you working off of?

 

I guess what I want to know is...

 

What did other people do? We have a ton of people who are together, and only a few were CR-1. So when you married, what did you do?

[LeeFisher3]

According to appendix A of pub 519:

 

http://www.irs.gov/publications/p519/index.html

 

This appendix contains the statements nonresident alien students must file with Form 8233, Exemption From Withholding on Compensation for Independent (and Certain Dependent) Personal Services of a Nonresident Alien Individual, to claim a tax treaty exemption from withholding of tax on compensation for dependent personal services. For treaty countries not listed, attach a statement in a format similar to those for other treaties. See chapter 8 for more information on withholding.

 

Appendix B is for teachers and researchers statements.

 

What chapter and section are you working off of?

 

I guess what I want to know is...

 

What did other people do?  We have a ton of people who are together, and only a few were CR-1.  So when you married, what did you do?

192354[/snapback]

Go to page 10 of Pub 519 or online at http://www.irs.gov/publications/p519/ch01.html#d0e1670 concerning nonresident spouse. You treat her income as a US resident, not foreign income, not tax treaty just as if she made each and every dollar in the US. Making the choice removes all other choices as an alien.

 

But the up side is you get a $3200 deduction for a minimum of income if she indeed had any.

Edited February 21, 2006 by LeeFisher3 (see edit history)

[Guest pushbrk]

According to appendix A of pub 519:

 

http://www.irs.gov/publications/p519/index.html

 

This appendix contains the statements nonresident alien students must file with Form 8233, Exemption From Withholding on Compensation for Independent (and Certain Dependent) Personal Services of a Nonresident Alien Individual, to claim a tax treaty exemption from withholding of tax on compensation for dependent personal services. For treaty countries not listed, attach a statement in a format similar to those for other treaties. See chapter 8 for more information on withholding.

 

Appendix B is for teachers and researchers statements.

 

What chapter and section are you working off of?

 

I guess what I want to know is...

 

What did other people do?  We have a ton of people who are together, and only a few were CR-1.  So when you married, what did you do?

192354[/snapback]

Since you ARE married, if you don't file as married now, you'll eventually have to amend your return. There is not tax penalty for this.

 

The rub might be a VO looking at a "single" tax return for 2005 and questioning your relationship. If the question comes up, your wife would at least need to be prepared to answer (if given the opportunity) that you'll be filing an amended return when she gets her SSN.

 

Even when you file married filing separately, the 1040 asks for the spouse's SSN.

[mercator]

Yes we're filling married joint.

 

I am e-mailing her the declaration with the hopes she'll mingbai I already sent the other documents to her.

 

The only number I can think of for her will be her passport number. Applying for the W-7 I hope tells them she doesn't have an SSN or ITIN.

 

Now... Do we send everything to the Philadelphia Service Center, or just a copy?

[mercator]

Ok - I think this hard headed old fogie (ok only old in brain years) gets it all now

 

Sorry to hijack the thread like I did.

[LeeFisher3]

Yes we're filling married joint. 

 

I am e-mailing her the declaration with the hopes she'll mingbai   I already sent the other documents to her.

 

The only number I can think of for her will be her passport number.  Applying for the W-7 I hope tells them she doesn't have an SSN or ITIN.   

 

Now...  Do we send everything to the Philadelphia Service Center, or just a copy?

192366[/snapback]

You don't put anything on the tax return for her SSN, the folks at Philly complete that and then send your return to the proper office.

 

If you don't have everything before the filing deadline just file married-sepearte and ammend your return once you get the paperwork back from her.

[mercator]

My wife has many friends who are married to westerners, including other Americans. She has never heard of the W-7 and thinks maybe I am being scammed. I explained to her that many people wait until their wife is in the states before they file.

 

For me the difference is getting $1775 back versus paying $3650. It's a no brainer, really. That is filing separate versus joint. So I told her to go to the consulate and get the notarized certified copy.