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rklscp · May 22, 2008, 11:04 AM

I am on H1 visa and have a valid SSN for 12 years (F1 and H1). My wife has only ITIN and she does not work and does not have SSN. Our daughter was born here and has SSN.

We filed married filing joingly (did not realize the consequences! ) and received our tax returns and NO stimulus rebate.

Since we itemized the deductions "married filing jointly" or "separately" should not affect. And since my wife does not work and file taxes she is still my dependent and I can take 3 exemptions including her. (AM I correct?)

Can we re-file our tax return by filing separately this year (i.e. extension/amendment within 3 months?) Has anyone done this? Please let me know. I think if I file separately at least I will get $900?

I appreciate your answer. Thanks!

ebaines · May 22, 2008, 12:02 PM

Unfortunately, according to IRS Pub 501:

Once you file a joint return, you can not choose to file separate returns for that year after the due date of the return.

See page 6 of http://www.irs.gov/pub/irs-pdf/p501.pdf

However, even if the IRS allowed you to refile, you probably wouldn't benefit enough to make it worth while. In almost all cases filing separately would cause you to pay a much higher tax than filing jointly, even though you itemized eductions - this is because the tax rates are significantly higher for MFS than MFJ. For example, if your adjusted gross income is $50K the tax owed is $6721 if filing jointly, but jumps to $8930 if filing separately.

Finally - since you don't qualify for a rebate this year, you have a chance to qualify for a rebate next year when you submit your 2008 tax return - at that time you should go through scenarios for filing as MFJ and MFS and see if it would be advantageous.

AtlantaTaxExpert · May 22, 2008, 02:59 PM

All is not lost!

I believe that you CAN file separately for 2008 and get the stimulus rebate for that year, then amend the return to file jointly AFTER you get the stimulus rebate.

ebaines · May 22, 2008, 03:03 PM

Originally Posted by AtlantaTaxExpert

I believe that you CAN file separately for 2008 and get the stimulus rebate for that year, then amend the return to file jointly AFTER you get the stimulus rebate.

That would work only if the rebate check is received before April 15, 2009, because after that date he can't amend the 2008 to go from MFS to MFJ.

AtlantaTaxExpert · May 22, 2008, 03:14 PM

Ebaines:

I disagree. While he 15 April 2009 deadline applies for amending from MFJ to MFS, it does NOT apply to amending from MFS to MFJ.

I have amended multiple MFS returns to MFJ up to the 3-year statutory deadline.

ebaines · May 22, 2008, 03:56 PM

ATE - I stand corrected - thanks for catching me on that. I'm afraid my previous answer went from my fingers to the keyboard without going through my brain. I was thinking about MFJ to MFS - my bad. So your trick just may work after all. Seems like a nice loophole, one favoring the "common man" for once!

rklscp · May 22, 2008, 07:32 PM

Originally Posted by AtlantaTaxExpert

All is not lost!

I believe that you CAN file separately for 2008 and get the stimulus rebate for that year, then amend the return to file jointly AFTER you get the stimulus rebate.

Thanks ATE and ebaines.

So, I can do it that way (file separately first and get stimulus and then amend the return to file jointly after I get stimulus) only for tax year 2008?
(IRS website also says if u do so, you don't have to return the stimulus benefit - unfortunately this clause was added only on 04/14/2008! According to IRS website).

I cannot do anything this year?

AtlantaTaxExpert · May 23, 2008, 07:17 AM

Sorry, no relief for the 2007 return, because, as ebaines noted, once you file Married Filing Jointly, it is effectively an irrevocable decision.