topic Question on tax options in Get your taxes done using TurboTax

Question on tax options

PraneethKoushik — Thu, 30 Jan 2025 19:49:41 GMT

I am on H1B visa and my wife is on F1. She had no income in 2024, doesn't have ITIN or SSN as she was not working. What are the options to file taxes for both of us and is the best way to file taxes? Does filing jointly maximize the returns as she had no income.

Re: Question on tax options

Vanessa A — Thu, 30 Jan 2025 22:03:22 GMT

How long have you been here? Do you meet the Substantial Presence Test? If not, then you would be considered a Non-Resident Alien and would need to file a 1040NR which TurboTax does not support, but our partner Sprintax.com does.

If you DO meet the substantial presence test, when did you meet it? If it was prior to January 1, 2024, then you would file as a US Resident and file a 1040 form. You can file as Married Filing Separately or possibly Married Filing Jointly.

As to which election to make, if you chose First year choice, it would depend on the day you met the substantial presence test as to whether you would still need to file a 1040-NR. If you did not meet the substantial presence test until part way through 2024, and you elected First Year Choice you would have to file as a Dual Status Alien. You would need to file the 1040 form for the time you are treated as a US Resident Alien which can be done through TurboTax along with the statement of election and then you could use Sprintax.com to file the 1040NR for the part of the year that you are treated as a Non-Resident Alien.

"If you make the first-year choice, your residency starting date for 2024 is the first day of the earliest 31-day period (described in (1) above) that you use to qualify for the choice. You are treated as a U.S. resident for the rest of the year. If you are present for more than one 31-day period and you satisfy condition (2) above for each of those periods, your residency starting date is the first day of the first 31-day period. If you are present for more than one 31-day period but you satisfy condition (2) above only for a later 31-day period, your residency starting date is the first day of the later 31-day period." Pub 519

Basically, the options are based on what date you met the substantial presence test and how you would like to file.

If you are married, it is possible that you could choose to be treated as a Resident Alien for the entire year.

"Choosing Resident Alien Status If you are a dual-status alien, you can choose to be treated as a U.S. resident for the entire year if all of the following apply.

You were a nonresident alien at the beginning of the year.
You are a resident alien or U.S. citizen at the end of the year.
You are married to a U.S. citizen or resident alien at the end of the year.
Your spouse joins you in making the choice.

This includes situations in which both you and your spouse were nonresident aliens at the beginning of the tax year and both of you are resident aliens at the end of the tax year.

Note. If you are single at the end of the year, you cannot make this choice. If you make this choice, the following rules apply.

You and your spouse are treated as U.S. residents for the entire year for income tax purposes.
You and your spouse are taxed on worldwide income.
You and your spouse must file a joint return for the year of the choice.
Neither you nor your spouse can make this choice for any later tax year, even if you are separated, divorced, or remarried. The special instructions and restrictions for dual-status taxpayers in chapter 6 do not apply to you." Page 12 Pub 519

If your spouse chooses to be treated as an US Citizen for tax purposes, and you want to file as Married Filing Joint, you would need to include their income on your return if they had income in 2024 from any source worldwide. If they do not have any income, you can still file a joint return which would give you a higher standard deduction which would decrease your tax liability. If you choose filing jointly, you will need to print and mail your return along with the W-7 and any other required documents to

IRS

ITIN Operation

P.O. Box 149342

Austin, TX 78714-9342

The 2024 Standard Deductions are as follows:

Married Filing Joint (MFJ) $29,200
Married Filing Separate (MFS) $14,600
Head of Household (HOH) $21,900
Single $14,600

Blind or over 65 and MFJ or MFS add $1,550

Single or HOH if blind or over 65 add $1,950

Married Filing Joint versus Separate