Recovery rebate for TN visa holder

[kav bee]

Hello,

I moved to California under a TN Visa from Canada in April 2021. I am filing joint with my spouse and will request that we are considered residents for the whole year 2021.

TurboTax has assessed a Recovery Rebate of $2,800. Are we entitled for this?

Thanks

[Vanessa A]

1. Is your spouse a US Citizen or resident the reason you are filing as residents for all of 2021?

2. Your spouse needs to double check to be sure the IRS does not have a record showing that they sent the $1,400 stimulus payment to them in 2021. 

3. Yes, if you are eligible to file as a US resident for 2021, then you may be eligible for the recovery rebate. 

[kav bee]

Many thanks for your reply.

I have a TN Visa, and my wife has a Dependent-TN Visa. We both came to the USA for the first time in April 2021 and still in the USA as at December 2021.  We decided to file jointly under the following rule:

" 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."

https://www.irs.gov/pub/irs-pdf/p519.pdf

Is my understanding correct?

Many thanks.

[DaveF1006 · Accepted solution]

Yes, you are correct in your understanding.  TN visa holders can be considered resident aliens if they meet the substantial presence test requirements.  Just to clarify though, have you both been issued  Social Security Numbers?

@kav bee

[kav bee]

Many thanks for clarifications.

I have a SSN number. My wife co-owns the rental property and is thus only reporting the rental income.

My plan is to prepare our returns on TurboTax and proceed with the paper-filing route.

I understand we can visit a local tax center with our prepared tax and she will be given an ITIN. Is this correct?

Many thanks.

[DaveF1006 · Accepted solution]

Yes, this is true but let me suggest an alternate way.  Here is how to report.

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.

If your spouse doesn’t have a Social Security number or ITIN, you’ll need to apply for one when you mail in your return. To do this, follow steps 1–3 above and then do this:

1. Fill out Form W-7 and attach it to your return, as well as all necessary documentation.
2. Mail the return to the address specified in the Form W-7 instructions.

Note: TurboTax will give you an error regarding the missing Social Security number for your spouse. You can ignore the error since you’re printing your return.

@kav bee