For MFS (Married Filing Separately) with NRA (Nonresident Alien) in past IRS required "NRA" to be typed where the spouse's SSN goes and to paper file. Now in 2023 IRS Publication 501, page 7, the IRS is clear that "NRA" goes where the spouse's name goes and e-filing is allowed. Why isn't the TurboTax software updated to allow e-filing without the SSN. Will this be fixed soon? E-filing is always better than paper filing.
Correction: Why isn't the TurboTax software updated to allow e-filing withOUT the SSN.
You read it wrong, that's for MFS. If you want to file MFJ, your spouse needs an ITIN. You can't e-file without it. You would mail your return plus the ITIN application (form W-7) to the IRS for processing.
Actually, another typo in my question. Having trouble editing. I meant MFS.
Fixed my typo. I meant MFS = Married Filing Separately. Any thoughts on that?
You can try typing NRA in as your spouses last name. Make sure you put a check mark in the box that says My spouse is a Non-Resident alien in the My info section. When you get to the end and try to transmit the return, ignore the e-file errors regarding your NRA spouse and select transmit your return.
Thank you! I had NRA with the name. I ignored the error that required the SSN and tried to transmit. Turbo Tax just won't transmit the filing without a SSN. Regarding the Non-Resident alien box in "My info" section, can you direct me to that? In the worksheets for taxpayer and spouse, I did note "FC" for state of residence for both taxpayer and spouse. Is there another check-box I am missing?
The actual IRS instructions for form 1040 state:
If your spouse doesn’t have and isn’t required to have an SSN or ITIN, enter “NRA” in the entry space below the filing status checkboxes. For electronic filing, enter the spouse's name or “NRA” if the spouse doesn’t have an SSN or ITIN in the entry space below the filing status check-boxes.
That does not mean that the spouse's name or SSN should be "NRA" it refers to different box on the form 1040. See picture.
I don't know whether Turbotax supports e-filing without the SSN or ITIN. Just because the IRS allows it, doesn't guarantee that Turbotax is programmed to allow it. (Some of the rules for the e-file system are mandatory and some are optional, apparently. Turbotax also doesn't allow PDF attachments even though the IRS permits it and some other tax software allows it.)
What you should be looking for is not the ability to write "NRA" in the box for the SSN (which is probably programmed to only accept numerals). What you would be looking for (based on how Turbotax handles similar issues) is a checkbox on your spouse's information page, where there are several other checkboxes for other special circumstances.
Frankly, I would not hold out hope that if you called support, you would get a correct answer, since this a a fairly technical area and the support operators are many layers separated from the programmers. If Turbotax won't allow you to e-file, I suspect you will have to file by mail or find a different software provider.
Thank you Opus 17. That is all consistent with my understanding and with Publication 501 too. I have NRA in the correct place. It is just that TurboTax won't accommodate the electronically filing even though the IRS allows. I understand the IRS didn't allow electronically filing in the past for this situation, but that was fixed by the IRS. It's unfortunate that TurboTax hasn't accommodated it because it seems like a simple coding fix by TurboTax to allow probably thousands of users in the same situation to file electronically. Thanks for your detailed response.
Did Turbotax ever resolve this bug. I'm having the same issue and would like to file electronically.
@walker1958 wrote:
Did Turbotax ever resolve this bug. I'm having the same issue and would like to file electronically.
See this TurboTax support FAQ for filing when your spouse is a nonresident alein - https://ttlc.intuit.com/turbotax-support/en-us/help-article/tax-credits-deductions/file-taxes-spouse-nonresident-alien/L4AuRKrMd_US_en_US?uid=m7jhv066
So, in other words, Turbotax did not fix the bug to allow electronic filing.
@walker1958 wrote:
So, in other words, Turbotax did not fix the bug to allow electronic filing.
Basically, Yes.
They don't necessarily care about the NRA spouse, but they do care about your filing status, primarily because it allows or disallows credits and deductions and changes certain numbers such as your mortgage interest amount. The biggest difference when filing jointly or separately, would be the credits you could claim. See the post here by Champ MacUser.
If you choose filing single, TurboTax would give you those credits if you would other wise qualify but not for the filing status of Married filing separately.
Still the program should've been updated to allow e-filing. It's very disappointing to go through the hassle of mailing. A lot of wasted time trying to figure out the program nuances.
Did you go through all the steps to see if you are able to e-file. The IRS accepts some of these e-filed while it doesn't others.
If you did not, then all you need to do is ignore the warnings that you cannot e-file and continue the entire way through then hit transmit my return.
If it does not transmit or if it is rejected, then you simply go back and hit print my return.