1042S exemption code 15 - Got Greencard in November 2021

[melsawy93]

Hi everyone,

I am filing as married jointly for my wife and I. I work fulltime and my wife is a graduate student that is a on scholarship/fellowship. I have a W2 and my wife has a 1042-S.

I was always a resident because I have been here for 4 years now while my wife was always a non-resident because shes on a student visa. For 2020 taxes we did our taxes H&R block and we had to write a letter to allow my wife to be treated as a resident for tax purposes.

We both got our Greencard in November 2021. She told her university by january about the greencard to change her status. For taxes in 2021; how do I include her 1042-S in turbotax? It is exemption code 15.

[DaveF1006]

To clarify, how long did your wife reside in the US and what Visa status did she have? For an example, was it F1, J1 or some other status?

[melsawy93]

She has been in the US since august 2019 on a F-1 visa. She is now a green card holder (since november 2021).

[DaveF1006]

According to IRS regulations, as a F1 Visa holder, she is exempt from US  Social Security and Medicare taxes for a five-year period upon entering into the US. Since she hasn't meet that five year exemption period, she doesn't meet the Substantial Presence Test requirements to file as a resident. This is because the days that she is present in the US don't count while she is still an exempt student. To file jointly.

1. Prepare your return in TurboTax.
2. When you get to the Let’s get ready to e-file screen, select File by Mail.
3. Attach a statement to your return, signed by each of you that states that one of you is a U.S. citizen and the other is a nonresident alien and that you’re electing to both be treated as U.S. residents for tax purposes. Include the full name, address and Social Security number (or Individual Taxpayer Identification Number) of each spouse. This won’t affect the immigration status of the nonresident alien.
4. Mail the return to the address on the instruction sheet that prints with the return.

To report her 1042-S, go to:

1. Open your return in TurboTax 
2. Click on Wages & Income 
3. Scroll down to All Income 
4. Scroll down to Less Common Income 
5. Scroll down to Miscellaneous Income, 1099-A, 1099-C 
6. Click start 
7. Scroll down to Other reportable income 
8. Answer yes 
9. Enter form 1042-S as a description and amount. In the description, make sure you mention it is your wife's income.

@melsawy93

[melsawy93]

Understood. You mentioned to say that one person is a US citizen and one is not (in the statement). I would like to clarify I am not a US citizen. I was on a TN Visa but since ive been here for 4 years ive been considered a resident. We did receive our greencards at the same time. I assume this will not affect what you just explained.

Also when I do the steps for the 1042-S, where do I put the taxes withheld reported on the 1042-S? In step 7 I am putting the income reported on 1042-S but where do I put the taxes withheld?

[DaveF1006]

Yes, under your TN Visa, you are not exempt from US Social Security or Medicare unless your country has a totalization agreement with the United States. If not the case, then you are a US alien resident under the Substantial Presence Test.

 Here is how to enter the income taxes that were withheld and reported on the 1042-S.

1. With your return open
2. Click on Deductions & Credits
3. Scroll down to Estimates and Other Taxes Paid\
4. Click on Other Income Taxes
5. Scroll down Other Income Taxes paid in 2021
6. Click on Withholding not already entered on a W-2 or 1099