I sold my primary residence in 2020. I was subject to FIRPTA witholding via form 8288. How do I submit my copy of the form 8288-B when filing using turbotax?

[ea0337]

The witholding was remitted in a timely manner after the sale. If I want to file my taxes electronically, how do I include the copy of 8288-B?

[MarilynG1]

Click this link for instructions on how to claim your 8288 tax paid as Other Taxes Paid. 

[ea0337]

@MarilynG1 Thank you for your answer. Based on thread that you shared, I understand that I need to include "Other Taxes Withheld" while filing my taxes. Also, I do not need to submit any documentation as proof of the withholding since IRS has received their respective copies (8288-A) anyway. Can you confirm that this is correct?

[ColeenD3 · Accepted solution]

You will have to mail your return.

IRS will stamp copy B of Form 8288-A and send it to the transferor, the person subject to withholding. The transferor must file a U.S. income tax return and attach the stamped Form 8288–A to receive credit for any tax withheld.

8288

[ea0337]

Thank you @ColeenD3 for your answer.

A follow-up question: I never received the stamped copy B of Form 8288-A back from the IRS, presumably due to covid etc. I do have copies of the "copy B of Form 8288-A" as well as the Form 8288 that were submitted along with the withholding check to the IRS, by my title company. I will be submitting those as justification for claiming my funds back. Will this be alright?

[ColeenD3]

Yes. Make sure you keep a copy for yourself.

[ea0337]

@ColeenD3 Thank you for resolving this.

[zhangfanrdfz]

Hello @ea0337 , I'm in the same boat for my 2022 return, sold my primary home in 2022 and got the stamped copy B of form 8288-A. Did you fill yours electronically? Or printed out your 1040 from TurboTax, attached the 8288-A, then mail it? Did things work out smoothly? Is there any other thing I should be careful with? Thank you very much for your help😀

[DianeW777]

Your tax return must be mailed so that you can attach a copy of the Form 8288-A.  The IRS requires a copy so that they can verify the withholding because this is not a common occurrence.  Their time difference for connecting these documents to a taxpayer's return is extremely lengthy and could hold up your refund for months.

• How to report. You must file a U.S. tax return (Form 1040-NR, 1041, 1065, or 1120-F) to report the sale or other disposition as effectively connected with the conduct of a trade or business in the United States. To receive credit for any federal income tax withheld shown in box 4, attach Form 8288-A to your tax return, unless you make a request for early refund. Foreign partnerships should report the credit for withholding on Form 8804 and attach Form 8288-A. See Pub. 515 and Pub. 519 for more information.

Keep a copy of everything with your return so that it is readily available should you need it later.

1. How do I print and mail my tax return?
2. Where to mail/file paper tax returns? (TurboTax will provide the mailing addresses for both federal and state returns.)

If you mail your tax return you can include the Form 8288-A copy B with your return as proof of Foreign Investment in Real Property Tax Act (FIRPTA) tax withholding. Include the amount in your tax return by using the steps below.

1. Sign into your TurboTax account > once inside the return select Deductions and Credits at the top
2. Scroll to Estimate and Other Taxes Paid > Show More > Start/Revisit beside Income Taxes Paid > Scroll to Other Income Taxes Paid in 2022
3. Continue to Start Withholding not already entered on a W-2 or 1099

This will allow both federal and state additional withholding not entered in any other location.

For Future Use:

You can file a Form 843 (Claim for Refund), together with a Form 8288-A, to show the estimated tax on the sale. This is the IRS's official process for obtaining an early refund of FIRPTA withholding.

@zhangfanrdfz 

[zhangfanrdfz]

Hey @DianeW777 , thank you very much for your reply😀

Here is a little background:

I'm on H1B visa and my wife is on H4 visa, we are not US citizens, not green card holders. We left the US in May 2022, but we are still considered as US resident per Substantial Presence Test, so, for tax year 2022 we are still going to do the 1040 married-file-jointly, not 1040NR. When selling my house, even though I told the agent about this, the agent still say "if you are not US citizen or green card, when selling the house, I must withhold 10% or 15% per FIRPTA." That's why my wife and I got the 8288-A copy B from IRS. The final amount is 10%, because the buyer is using it as primary home.

If I understand the process correctly, below are the steps I'm going to do:

1. enter the amount at "Withholding not already entered on a W-2 or 1099". I have a follow up question if you could help with: because there are 2 pieces of 8288-A, one for me, one for my wife, the withholding amount is divided 50-50, so I think I should do 2 lines instead of 1 line at Withholding not already entered on a W-2 or 1099? And I guess the total amount will show on line 25C on form 1040?

2. I will do the rest of the 2022 tax return following TurboTax's instructions.

3. at the end of TurboTax, there will be 2 options: fill electrically or mail it, I will choose "mail it" and print out all the forms.

4. attach the 2 pieces of 8288-A to the forms I printed out, then mail it, and wait several months.

Is there any other form I should use to support the 10% FIRPTA withholding other than 8288-A?

Thank you again, I really appreciate your help and advise😃 

[DianeW777]

Yes, two lines would be accurate since each of you received a separate withholding amount on each Form 8288-A.

Yes, continue to follow the TurboTax instructions and choose to mail it and attach a copy of each Form 8288-A, one for each social security number (SSN).

Forms and schedules are filed with the IRS along with your withholding forms.  TurboTax will have you print your 'federal return' for mailing which will include all necessary forms and/or schedules.  Attach your federal withholding forms and then mail your return.  You should select a method that confirms the IRS received it.

@zhangfanrdfz 

[zhangfanrdfz]

got it!  thank you @DianeW777  for your help!

[frahman]

Hey,

Just a really quick question please. I really need your experience here !

So I think we have same situation, just wondering, approximately how long did you receive your stamed copy of 8288-a  from the IRS on your mail? and are you located in the US? 

@zhangfanrdfz @DianeW777 

[frahman]

Hey Dianne, I see you are helping fellow user here. Just wondering, from your past experience with ur clients, how long did they receive the stamped copy of 8288-a from the IRS? I used a US mailing address during closing so just wondering when should I expect to receive that document, I really appreciate your help ! 

@zhangfanrdfz @DianeW777 or anyone please :(

[DianeW777]

If you filed  your tax return with Form 8288-A showing your federal withholding, then you must wait for the IRS to process your tax return before releasing any refund.  Although you needed to send a copy of the form to the IRS with your tax return, you should have also kept a copy with your files.  It's not clear which process you used to report your withholding.  

1. Filed with your tax return and included a copy of the form, or
2. Did not use it on your tax return and filed form 843 to claim the refund.

You can file a Form 843 (Claim for Refund), together with a Form 8288-A, to show the estimated tax on the sale. This is the IRS's official process for obtaining an early refund of FIRPTA withholding.

Regardless, the IRS has been extremely slow since COVID, the response time is very lengthy, so if you are asking when the refund might come you should not expect anything for at least two months and it could be longer.

@frahman