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Hi! I'm stuck with my first tax returns.
I lived and worked in the US in 2022 full year (on L1B visa) and returned back to my country in 2023. I've got W2 and SSN. My spouse has never lived in the US and will not file tax returns. She has no SSN or ITIN.
I cannot e-file because turbotax complains the entered SSN (just nine equal digits) for my spouse is incorrect. Even if I enter some random SSN, IRS rejects the tax return as the SSN is incorrect.
I cannot select "file by mail" as the direct deposit/credit card payment is not supported in this case. I also cannot pay by check as I live in Europe now and have no BofA checks.
I have no visa anymore and cannot enter the US.
What are my options? Thanks!
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There are three ways for a person with a nonresident spouse to file (discussed in this TurboTax Help article). Based on what you wrote, “Married Filing Separately” is jumping out at me as the way to go here. But that’s only because you didn’t mention kids or other relatives who might enable you to claim “Head of Household” status (here’s the IRS on that), which has a better tax rate and other possible benefits.
[RalphH1 added this later: dzmitry6, thanks for calling my attention to the problem with that IRS link (I won’t be using it again). Although it correctly says “Citizens and Residents” in the title (and is otherwise useful), the first sentence does imply that residents can’t be Head-of-Household unless they’re citizens, which definitely isn’t the case. Once you meet the “substantial presence test” to be considered a resident (as you apparently did in 2022 by being here all year), you have the same tax obligations and benefits as U.S. citizens (and “can use the same filing statuses available to U.S. citizens,” according to that same Internal Revenue Service in this link…). Sorry for the confusion, dzmitry6!]
It’s also because of your apparent concern with the logistics of filing jointly (which is completely understandable). As you’ve noticed, you can’t just put a equal-digit Social Security number in for your wife (that’s not a TurboTax thing, though — Intuit is just keeping you from filing a return the IRS would reject).
You must apply for an ITIN number for her (as described here) in order to include her, and that does involve mailing the return in (with Form W-7 and other documentation, plus an election to treat your non-resident spouse as a resident), and a significantly longer time frame for processing it all. And then you have the question of how to pay, although there are some ways to deal with that separately from the return filing process (see here).
@dzmitry6, I’m sort of assuming that a joint return gives you a much better result than a separate one, and that’s why you want to do it that way. (Keep in mind that all your wife’s worldwide income would be reportable on a joint return though.) If you’ve tested the different scenarios (in the program) and that’s the case, then you just have to decide if the inconveniences of filing jointly are worth the monetary savings. (Unless, of course, there are youngsters in the picture, in which case maybe they save the day, and you’re head of household!)
Thanks! However, based on the IRS link, I guess I cannot be treated as a head of household as I'm not a US citizen.
There are exceptions to that:
If you are not a U.S. citizen, you are considered a nonresident of the United States for U.S. tax purposes unless you meet one of two tests. You are a resident of the United States for tax purposes if you meet either the green card test or the substantial presence test for the calendar year (January 1 – December 31).
Determining an Individual’s Tax Residency Status
The criteria for Head of Household is: If, at the end of your tax year, you are married and one spouse is a U.S. citizen or a U.S. resident within the meaning of Internal Revenue Code (IRC) section 7701(b)(1)(A) and the other is not, you can choose to treat the nonresident spouse as a U.S. resident for tax purposes. This includes situations in which one of you was not a U.S. resident at the beginning of the tax year but was at the end of the year, and the other was not a U.S. resident at the end of the year. Nonresident Spouse
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