Tax Return and filing a joint return

[Randy W]

Correct me if I'm wrong - if you married in 2006, but your spouse had no reportable income for the year, this publication does not affect you - you still file married for the entire year, and report all your income on the 1040 as usual.

Edited December 31, 2006 by Randy W (see edit history)

[C4Racer]

This is in the Interview FAQ:

 

Q.3.12 Can I get my SOs passport notarized in china for tax purposes (IRS ITIN, W-7)?

 

A.3.12.1

I just returned from China and brought with me my wife's Chinese passport. I immediately had her passport notarized here in the U.S. and mailed it back by U.S. Express Mail.

 

If you want the American Consulate to notarize it, then I read somewhere that she has to go the American Consulate in China. I am not sure whether the Consulate would let her in without you being there. She can call the Consulate and ask the question herself.

 

A.3.12.2

The consulate cannot Notarize her Chinese document, I just asked when I was there. She has to go home, get a notarized copy from her local gov. Then return to the consulate with the copy. I was trying to accomplish the same thing. The US consulate sent me down to the 4th floor of the Guz building to the Chinese public affairs office. They told us the above information

 

A.3.12.3

When I first inquired with the IRS, they told me that copy of your SO's passport needs to be notarized by a US notary. They did tell me that you could send the original with the W-7 and they would send it back, but I did not want to chance it. Just take the original and copy to the notary so they can see the two are the same. When I sent my 1040, the W-7 for my wife and the copy of her passport, I had no trouble getting my refund.

 

A.3.12.4

I had to get my SO's passport notarized for tax purposes last year and we went to the US consulate. They instead said that there was no need to actually get it notarized - instead they wanted to see her original passport, then they made a copy of it and put a consulate stamp on the copies which said something along the lines of 'original seen and returned' - then it was signed by the consular officer. It was sufficient for us to do the W-7. I asked several times if it needed to be notarized and they kept stressing that the consular stamp was sufficient - it also didn't cost us anything.

 

A.3.12.5

I just completed this whole process in the end of February and have already received the refund. Fortunately I was in Taiwan for Chinese New Years and knew I was going to have to get copies of my wife's passport notarized/certified so I had it done at AIT in Taipei and I had our marriage certificate and MY passport certified here at a local bank. I shipped all of the forms to the IRS office and they processed them, sent me my wife's new taxpayer ID number and I got the refund a few days later. Very painless except for the $30 I had to pay AIT which is the US State Department for a notary fee.

 

A.

More info:

 

To W-7 or not to W-7

http://candleforlove.com/forums/index.php?showtopic=15992

 

Filing W-7 ITIN for federal taxes, Notarized copy of passport?

http://candleforlove.com/forums/index.php?showtopic=17231

 

 

What would happen if someone filed Married-Separate??

 

Your percentage of owed taxes would be higher than filing married-jointly.

I think it is still lower than filing a single return.

The big thing is it establishes your correct status of married.

You have three years to ammend the return, correct your true status and recover any difference you are owed by the government. This is one way to handle it as it gets you filed by the deadline thus avoiding any penalties. Since you have time, you can get your W-7 ITIN unless it would cause some undue hardship getting to the embassy an additional time.

Edited December 31, 2006 by C4Racer (see edit history)

[LeeFisher3]

Correct me if I'm wrong - if you married in 2006, but your spouse had no reportable income for the year, this publication does not affect you - you still file married for the entire year, and report all your income on the 1040 as usual.

IF you meet the Green Card Test or the Substantial Presence test you can bypass the First Year declaration. We have a number of members that fall into this category.

 

But for anyone who is married and their spouse has not made it to the US or a fiance arrived after July 2 this is the only method of having the entire year deduction or possibly any deduction for being married.

 

Yes, paper filing is a pain, but the documentation they want is simple. Some have filed married-jointly without taking this step, but the IRS can come back at a later time and reverse your choice if you don't make the effort. The cost would be the removal of the deduction for your spouse along causing you to have a significant tax, interest and penilty to repay.

 

Have they, I don't know, but would they, sure thing.

Edited December 31, 2006 by LeeFisher3 (see edit history)

[LeeFisher3]

Correct me if I'm wrong - if you married in 2006, but your spouse had no reportable income for the year, this publication does not affect you - you still file married for the entire year, and report all your income on the 1040 as usual.

Correct. The election to have all income treated as US income is just that. If the Chinese partner has no income, they have no income but can still file a joint return. Using the election, the return has to be sent somewhere other than your normal filing center. The address is in the Pub 519.

Not quite correct, the dedcution is subject to the same rules no matter how much she made.

[Randy W]

Correct me if I'm wrong - if you married in 2006, but your spouse had no reportable income for the year, this publication does not affect you - you still file married for the entire year, and report all your income on the 1040 as usual.

Correct. The election to have all income treated as US income is just that. If the Chinese partner has no income, they have no income but can still file a joint return. Using the election, the return has to be sent somewhere other than your normal filing center. The address is in the Pub 519.

Not quite correct, the dedcution is subject to the same rules no matter how much she made.

 

 

What deduction? Does the Pub 519 actually produce a deduction? Or are you referring to the usual 1040 (itemized or standard) deduction ?

[LeeFisher3]

Correct me if I'm wrong - if you married in 2006, but your spouse had no reportable income for the year, this publication does not affect you - you still file married for the entire year, and report all your income on the 1040 as usual.

Correct. The election to have all income treated as US income is just that. If the Chinese partner has no income, they have no income but can still file a joint return. Using the election, the return has to be sent somewhere other than your normal filing center. The address is in the Pub 519.

Not quite correct, the dedcution is subject to the same rules no matter how much she made.

 

 

What deduction? Does the Pub 519 actually produce a deduction? Or are you referring to the usual 1040 (itemized or standard) deduction ?

It would be the itemized or standard deduction because they disallowed the exemption.

[stacato]

Sorry for barging in but I have a related question. My accountant must have not known the rules and told me last that I had to file as a single. I got married in September 05. So I filled as a single. Now, for 2006, We will file a joint return. Can we make a retroactive adjustment for the 2005 tax year?

[Randy W]

Sorry for barging in but I have a related question. My accountant must have not known the rules and told me last that I had to file as a single. I got married in September 05. So I filled as a single. Now, for 2006, We will file a joint return. Can we make a retroactive adjustment for the 2005 tax year?

 

 

Use the Form 1040X to file an amended return.

[LeeFisher3]

Sorry for barging in but I have a related question. My accountant must have not known the rules and told me last that I had to file as a single. I got married in September 05. So I filled as a single. Now, for 2006, We will file a joint return. Can we make a retroactive adjustment for the 2005 tax year?

You sure can, an ammeded return can be filed for previous years, but they limit this to 3 years. There is a bit more in pub 519 for each of the situations on page 9 & 10.

 

If your accountant has a double your money guarantee on tax mistakes you could stand to make some good money.

[stacato]

Sorry for barging in but I have a related question. My accountant must have not known the rules and told me last that I had to file as a single. I got married in September 05. So I filled as a single. Now, for 2006, We will file a joint return. Can we make a retroactive adjustment for the 2005 tax year?

You sure can, an ammeded return can be filed for previous years, but they limit this to 3 years. There is a bit more in pub 519 for each of the situations on page 9 & 10.

 

If your accountant has a double your money guarantee on tax mistakes you could stand to make some good money.

 

Thanks, no he doesn't but I sure will mention it to him next time!

[sweattrl1]

Most individual taxpayers are calendar year. If married before midnight on 12/31, you are considered married and need to file as such. Single = unmarried at midnight on 12/31.

I would like to thank you lee for your fast action on this infomation, you are a good friend for sure and thank you to DON, for your friendship, i am sure this will help me a lot with my fileing and i will inform my accountant, and thanks again

[mikepellicore]

hello, I am filing jointly, with W-7 for 2006. I read the address for filing in the first link here as Austin, TX! There was a mention of Philly, but no address. Does anyone have clarification?

Thanks, Mike

[LeeFisher3]

hello, I am filing jointly, with W-7 for 2006. I read the address for filing in the first link here as Austin, TX! There was a mention of Philly, but no address. Does anyone have clarification?

Thanks, Mike

The Austin info was on a photocopied paper handed to me at an IRS office but I see nothing on the IRS web site providing the Austin address for filing a W-7.

 

The address on the W-7 instructions is:

 

Internal Revenue Service

Philadelphia Service Center

ITIN

Unit

P.O. Box 447

Bensalem, PA 19020

[Randy W]

from Dan's link Individual Taxpayer Identification Number):

 

How do I apply for an ITIN?

Use the January 2006 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 or certified proof of identity 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 documents to the address listed in the Form W-7 instructions:

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 an IRS Taxpayer Assistance Center in lieu of mailing your information to the IRS in Philadelphia. TACs in the United States provide in-person help with ITIN applications on a walk-in or appointment basis. Applicants outside the United States should contact an overseas the IRS office to find out if that office accepts Form W-7 applications. The IRS's ITIN Unit in Philadelphia issues all numbers by mail.

The W-7 says to mail it to the Philadelphia address.

 

Edited January 23, 2007 by Randy W (see edit history)

[LeeFisher3]

The IRS office gave me a sheet with both the addresses on it a few weeks ago, but I can't locate it.

 

I would bet it will work at either place, if in doubt toss a coin between their web site and last years version of the W-7.

Edited January 24, 2007 by LeeFisher3 (see edit history)