Married Filing Separately or Jointly for K-1 & ROTH IRA distributions

[kean1598]

Part 1: 

Please consider these facts:

-Taxpayer is a US citizen and spouse is a non-resident alien who came to the USA for the first time on August 30, 2024. Taxpayer and spouse got married October 2024. Spouse came to the USA with a K-1 visa. Spouse haven't worked since July 2023 which means she had no worldwide income or US income for 2024. Spouse don't need to file tax return, but it is beneficial for the taxpayer to classify the return as "married filing jointly." It seems like under "Nonresident Spouse Treated as a Resident" provision, Taxpayer can elect the spouse to be a resident alien for the entire tax year, which will then allow the taxpayer to file "married filing jointly."

Taxpayer question:

1.) Can I file married filing jointly? If so, what forms should I fill out any documents that I may need to submit.

Part 2.

Consider these facts: Taxpayer contributed into his ROTH IRA since 2020 and hasn't done any withdrawal up to 2024. In 2024, taxpayer withdrew $5,000 which is far below taxpayer's basis or life-to-date contribution amount.

Note: Prior to opening a ROTH IRA. I always thought that I can withdraw my contributions tax and penalty free as long as taxpayer's withdrawal amount doesn't exceed taxpayer's contributions. Taxpayer received a 1099-R and the distribution code is "J" but line 2b (Taxable amount not determined) is checked as well.

Taxpayer's question:

1.) How do I go about filing this withdrawal and can I avoid the penalty and tax? If so, how and what forms can I submit?

[Opus 17 · Accepted solution]

Part 1.

Yes, you can file jointly.  If your spouse is eligible for an SSN, apply for it, and wait to get it before you file, even if that means filing late and getting an extension.  If the spouse is not eligible for an SSN, you must print the return, and fill out a W7 application for an ITIN, and mail both to the IRS together.

https://www.irs.gov/forms-pubs/about-publication-519

https://www.irs.gov/tin/taxpayer-identification-numbers-tin

Part 2.

When you file your return and report the 1099-R, Turbotax will ask you for details about your prior Roth contributions, conversions, and withdrawals, if any.  Turbotax will do the calculations, and if this represents a withdrawal of contributions only and doesn't touch the earnings, it won't be taxable.  You don't submit other proof, but keep copies of records related to contributions and withdrawals for at least 3 years (6 years is probably better).