Inquiry About Filing 2023 Tax Return with Foreign Income & Non-U.S. Resident Spouse

[Navidht]

Hello,
I am planning to file my 2023 tax return using your software and have a couple of questions regarding my specific situation:

1. Foreign Income:
   All of my income for 2023 was earned abroad. Could you please confirm whether your software supports reporting foreign income, and are there any special forms or steps I should be aware of?

2. Non-U.S. Resident Spouse:
   I will be filing as married; however, my spouse is not a U.S. resident, does not live in the USA, and does not have an SSN or ITIN. Could you please let me know if your software supports filing without providing a SSN or ITIN for my spouse? Are there any additional steps or special instructions I need to follow in this case?

Thank you very much for your assistance. I look forward to your response.

[pk]

@Navidht  if the question is  "can" TurboTax support your situation, the answer is  YES.  You would  need  2023 tax year software.  ONLY download/CD and may I suggest Windows Home& Business  --  my favorite.

 Are you in the USA or still at the foreign location?

When did you enter that country  and if you have left that country, when did you arrive back in the USA.

Were you  self-employed or employed by a local entity ?  Did the entity provide housing benefits to you as part of your employment ?

I will circle back once I hear from you 

[Navidht]

Thank you for your prompt response and for confirming that TurboTax supports my situation for the 2023 tax year. I appreciate your guidance and would like to provide the requested details:

1. Residency & Travel:

   • I currently reside abroad.
   • Although my primary residence is overseas, I travel to the United States once or twice a year for personal reasons.

2. Employment Details:

   • I am employed by a foreign company.
   • I am not self-employed.
   • My employment does not include any housing benefits.

I hope this information clarifies my situation and confirms that I can file my tax return as married while skipping the SSN/ITIN for my spouse. Please let me know if you require any additional details or further clarification.

Thank you once again for your assistance.

[pk]

@Navidht ,  thank you for your response.

1. Note that  you would need a TIN  ( Tax ID -- SSN or ITIN  ) for your spouse to be able to include  the NRA spouse on your return . 

2. For MFJ with an NRA spouse , the spouse must agree to be treated as a resident for tax purposes  i.e. expose  his/her  world income to US taxes.  At the same time though  (and with a foreign tax home,  a  tax treaty  in effect)  that "foreign" income may be eligible  for  FEIE.

Which country  are we talking about ?

Is there more I can do for you ?

[Navidht]

I want to file as Married filing separately and my wife does not have SSN or ITIN and I want to skip this part otherwise the software does not work for me.

The country is Germany.

[pk]

@Navidht , 

 Sorry , this is not a software problem ( the ritual to include spouse  and  file as MFJ ) -- it is IRS requirement.

If you change your mind and do decide to file as MFJ -- this is what I wrote for another user  and would be generally applicable to your case:

"  

(a) you can file jointly with your wife, provided she  ( and you ) agree to expose her world income to US taxation.

(b)   To achieve this 

1. Prepare your MFJ return in TurboTax using a dummy  SSN  for your wife.  Include any income she may have had for the  Tax year ( note since Sri Lanka  tax year is different  from a calendar year, you will have to allocate  her  appropriately i.e. earned   from Jan 1st  2024 through 12/31/2024  for example ).

2. Once all the checks for the federal and the State are done, choose to file by mail.

3. Replace  the dummy SSN for your spouse  with  " N  R  A ".   

4. Now sign and date -- both of you 

5. Download from the IRS site form W-7 and its instructions.  Complete this form for your spouse, collect  all the required documents ( originals and a copy).

 6.  Use the  nearest US consulate  or  IRS authorized agents (for the purpose )  to certify the copies  of the required documents.  Your wife has to sign the W-7 application for  ITIN.

7.  Now add a   letter signed / dated by both you and your spouse requesting that you both want her to be treated as resident ( for tax purposes for the tax year 2024 ).

8 Mail all the above documents to the IRS  ( use the  address for your locality ).   "

There is nothing in the tax treaty  that gets in your way.  I do note that Germany , like US  taxes its residents on World Income but is residency  based ( unlike US ).

Is there more I can do for you. ?

Grusse

[Navidht]

I cannot file tax as single as I was married in 2023? how about if she does not agree to expose her world income to US taxation? Is it possible to file it as single?

[pk]

@Navidht , yes in that case you can file as 

(a) Married Filing Separate ( MFS ).  However , even in this case you may have to file by mail ---  you prepare the return as MFS,  use a dummy SSN   ( like  520-84-6000 )  plus name etc. of your spouse   (to satisfy TurboTax checks), then choose file by mail. Print , change the  dummy SSN with  " N R A "  and mail.  I am not sure  , but thought saw some noise about  TurboTax allowing one to use NRA while preparing -- if that is so then you should be able to file by e-file.

 I will check this on my copy and come back.

Also , if you have dependents ( children  -- blood or adopted ) that you maintain a  home for , then you can also file as Head of Household.

Just for her sake , is she aware that  while agreeing to expose her income to US taxes , , it is also  excluded from US taxes by virtue of using  Foreign Earned Income Exclusion --- but you get to use the  standard deduction of a couple.

Is there more I can do for you ?