Hi,

I have a question about my 2012 tax filing. I came to US on 8 July 2012 on h1B and since then I am in US. I am married (Wife is not working) and have a kid and both of them don't have a ITIN as of now.

I missed by 7 days only to qualify for 183 days timeline to be treated as Resident Alien. So now I am treated as Non Resident Alient so I need to fill 1040 NR and by that I won't be able to treat my wife and kid as dependent so won't able to claim deductions for them.

I also came to know about making First year choice. I read through the entire Pub 519 and first year choice. So I have below questions.

1. Even first year choice doesn't allow you to be treated as Resident Alien for entire year and you have to fiel your return dual status alien which forces you to file as "Married Filing Sepratly" which puts you in higher tax bracket and you can not treat your wife as dependent. Is it true?

2. In order to file as First Year Choice I would need to file Form 4868,to get extension to file and once I become resident alien in 2013 I can make first year choice for 2012. But when I do that I won't be able to apply for ITIN by filing W-7 and so won't be able to claim my wife and child as dependents. Is that right.

3. So is that would be a better option that I file 1040 NR now. And as I will be in us for entire 2013. I will file as resident alient for 2013 in 2014 and get ITIN and then I file amendment for 2012 as First year Chocie and now because I have ITIN I can claim both of them as my dependent.

Please help.

Vikas

Sorry. Please read the Title as "2012 First year Choice"

Hi,

I have a question about my 2012 tax filing. I came to US on 8 July 2012 on h1B and since then I am in US. I am married (Wife is not working) and have a kid and both of them don't have a ITIN as of now.

I missed by 7 days only to qualify for 183 days timeline to be treated as Resident Alien. So now I am treated as Non Resident Alient so I need to fill 1040 NR and by that I won't be able to treat my wife and kid as dependent so won't able to claim deductions for them.

I also came to know about making First year choice. I read through the entire Pub 519 and first year choice. So I have below questions.

1. Even first year choice doesn't allow you to be treated as Resident Alien for entire year and you have to fiel your return dual status alien which forces you to file as "Married Filing Sepratly" which puts you in higher tax bracket and you can not treat your wife as dependent. Is it true?

2. In order to file as First Year Choice I would need to file Form 4868,to get extension to file and once I become resident alien in 2013 I can make first year choice for 2012. But when I do that I won't be able to apply for ITIN by filing W-7 and so won't be able to claim my wife and child as dependents. Is that right.

3. So is that would be a better option that I file 1040 NR now. And as I will be in us for entire 2013. I will file as resident alient for 2013 in 2014 and get ITIN and then I file amendment for 2012 as First year Chocie and now because I have ITIN I can claim both of them as my dependent.

Please help.

Vikas

1. Once you make the first year choice you would be a resident alien for the part of 2012 you were in the US. SInce that would make you a resident alien at the end of 2012, you and your spouse can then choose to be treated as residnet aliens for the entire year which would allow you to file jointly. Note however, that you will have to report worldwide income for the entire year, but you can use the foreign paid tax credit on form 1116 if you paid any foreign taxes on your income earned before yo came to the US.

2. Yes, you would file for an extension and then file your return once you meet the substantial presence test attaching a statement making the two choices. You can apply for ITINs with this return. You would fill out one W7 per person needing an ITIN and attach it to the front of your return and send to the address given in the instructions for form W7.


To get an ITIN (Individual Tax Identification Number) you will need to fill out form W7 and attach it to the front of your tax return. You will also need to submit additional documentation to prove your identity and status. A passport is the only stand alone document, otherwise you need to submit two documents (see instructions). You can submit original documents, however, it is safer to submit copies. These copies need to certified by the issuing agency.

Send your return, form W7 and the supporting documents to the address in the instructions (see link below).

You can also apply in person at an IRS office handling ITIN applications (see link ITIN Acceptance Agents).

Turbotax does not support form W7, but you can download it and fill it out manually (or using a pdf editor).
Write "applied for, see attached W7" in the box for the SSN/ITIN on your tax return.


Form W7:
www.irs.gov/pub/irs-pdf/fw7.pdf
Instructions for Form W7:
www.irs.gov/pub/irs-pdf/iw7.pdf


ITIN Acceptance Agents (US and international)
Acceptance Agent Program

To apply for an ITIN from abroad:
Obtaining an ITIN from Abroad

Additional publications of interest:
http://www.irs.gov/file_source/pub/irs-pdf/p1915.pdf
www.irs.gov/pub/irs-pdf/p501.pdf
www.irs.gov/pub/irs-pdf/p515.pdf
www.irs.gov/pub/irs-pdf/p519.pdf

Thanks a lot for your response. Things are much clearer now. So in short I should be doing the following.

1. File 4868 to ask for an extension
2. Once I qualify for 2013 Standard Presence test then I will file 1040 and file as "Married filing Jointly". Attach W-7 for both my spouse and my kid. Attach a statement to declar "First Year Choice" and "Resident Alien Status" for entire year.

I have only few small points for clarifications.

1. when I file for extension form 4868 do I need to file seprate extension form for myself and my wife. Please not that wife does not work and she also does not have ITIN.
2. If the answer to the above question is that I don't need to file seprate extension form 4868. In that case in my form 4868 what should I fill in the section Spouse SSN as my wife doesn't have ITIN/SSN.
3, What do we fill in form 1040 Spouse SSN section as she doesn't have SSN or ITIN and we are attaching W-7 form for her ITIN number.

Thanks a lot once again for all of your help

Vikas

1/2. One extension is enough. Write "ITIN to be requested" in the field for your spouses SSN/ITIN

3. Write in "applied for see attached W7" when you file your actual return
You will send everything to the IRS ITIN Operation address (see the instructions for form W7, link above). They will process form W7, write in the ITIN numbers and forward the return to be processed.

Thank you so much for your response. One more question about 4868 extension form.

1. While estimating the tax liability for 2012 for 4868 form. Which form should I be using 1040 NR or 1040 NR - EZ. Please note that I am non resident alient as of now. My only income in US from my employer wages. And I won't be able to claim my spouse and kid as my dependents as of now as I am non resident alient now.

2. Also do I need to submit the 1040NR or 1040NR-EZ (whicever is applicable) along with the 4868 form.

Thank you so much for your responses.

Vikas

Vikas,

Submit JUST the Form 4868 with NOTHING else.

Also, the IRS recently announced the opening of Tax Assistance Centers through which you may be able to have the passport verified as genuine, then submit the tax return and Form W-7 IN PERSON to be forwarded to the ITIN Processing Center in Austin, Texas for processing , without having to get the photocopies certified by your home country consulate.

You go to the TAC with your family, the passports, the SIGNED Forms W-7, and the completed and SIGNED tax return.

You leave the TAC with your family, the passports and a receipt for the Forms W-7 and the tax return.

The list of the TACs are at the link below:

Taxpayer Assistance Center Locations Where In-Person Document Verification is Provided

This alternative beats submitting the actual passport (which the IRS could lose) or trying to get the consulate to certify the photocopy in the exact way required by the IRS.