Hi
I filed 1040 through turbotax instead 1040NREZ/1040NR. Is it unlawful to file 1040 ? Someone suggest me what to do.

Thanks
dealsboy

dealsboy

Hi AtlantaTaxExpert

I didn't pass the substantial presence test for Year 2005. Can you please tell me why I have to file either as Dual status alien or First year choice for resident.

dealsBoy

AtlantaTaxExpert

DealsBoy:

PLEASE read my other posts on this issue. I have answered this question at least 20 times in the past three weeks.

dealsboy

Hi AtlantaTaxExpert

This is what I am going to do for year 2005.

1. File form 4868 for extension.
2. In June file as resident using First Year choice.
3. Apply ITIN using w7 for my wife.
4. I have to file state taxes for 2 states(NM,CO).

This is what I found regarding state taxes.

1. Colorado individual income tax returns are due on April 15.
Colorado automatically allows a six-month extension without any written request.

2. A copy of the approved federal extension may be substituted for a New Mexico request for extension. Check the box in the heading section of Form PIT-1 to indicate that you have an approved state or federal extension.

* A four-month extension is allowed if federal Form 4868 is filed with the IRS. Do not attach a copy of this form to the return.

I do have some questions.

1. When filing extension I know that I have to figure taxes as non resident using 1040 NR.

can I use $5000 SD + $3200 for my exemption + $3200 for my spouse exemption ?

2. I got only $500 in NM. Do I still have to pay state taxes in NM?

Thanks for all your help and suggestions.

dealsBoy

AtlantaTaxExpert

DealsBoy:

1) If you using the First Year Choice option, calculate your taxes using $5000 SD + $3200 for my exemption + $3200 for my spouse exemption + $5000 SD for your wife filing jointly with you to determine if you owe taxes.

2) If you only earned $500 in NM, you will owe no taxes. However, you may want to file to get a refund of taxes withheld.

dealsboy

Hi ATE

I am filing my extension 4868. Do I have to file extension for my wife who is on H4 and she does not have ITIN ?

Thanks
dealsboy

AtlantaTaxExpert

Yes, if you plan to apply for an ITIN for your wife with the tax return using a W-7.

Put her name on the Form 4868 and the words 'APPLIED FOR' where her SSN goes.

dealsboy

Hi ATE

I believe I met 180 days for First year choice. This is how I counted the number of days.

In 2005, OCT 1- DEC 31 = Total number of days = 92
Days I took from 2005 = 92/3 = 30

In 2006, Jan 1 - Jun 6 = Total number of days = 157
Days I took from 2006 = 150

Total from 2005 and 2006 = 30 + 150 = 180 passed SPT by today.

Do I have to file as resident for whole 2005(just file 1040) or as a dual status alien(file 1040nr+1040) starting as resident on OCT1.

Thanks
Dealsboy

AtlantaTaxExpert

DealsBoy:

Since you are married and your wife chooses to be treated as a resident alien, you can now file jointly using Form 1040 and claim the $10,000 standard deduction.

Be sure to attach a statement to the return stating that you and your wife choose to be treated as a resident alien.