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cancarrie · May 12, 2009, 07:35 PM

Hello

I am a Canadian resident in the US on a J-1 visa. I filed a 1040NR form in March, on which I checked the box in line 3 to claim an exemption for my husband (also a Canadian, and he has no US income). I attached the W-7 form to apply for his ITIN, but he just got a letter saying the application was rejected with the reason:

"You indicated the reason for submitting Form W-7 is to file a valid U.S. federal tax return. You did not attach a valid U.S. federal tax return to your Form W-7 or your name did not appear as the primary, secondary or dependent on the valid U.S. federal tax return submitted, as required."

He is not listed by name on the 1040NR as I used the Cintax software to complete the form and it did not add his name to the 1040NR, although it did generate the W-7. It is still not clear to me where his name should go on an amended return. Box 7c? I called the IRS foreign tax office and was told that box 7c is only for children and other dependents, but not spouses, but when I called the ITIN office they insisted his name must be on the return.

Any help is much appreciated!

Five Rings · May 13, 2009, 07:55 AM

Box 7g of the W-7 should have been checked. Did you check that one?

Resubmit the W-7 with your return to the ITIN Unit after checking box 7g and including all his documentation.

If that does not work let me know and I will investigate for you.

cancarrie · May 13, 2009, 08:59 AM

I don't see a 7g on the W-7 form. Box "g" is checked at the beginning of the W-7 ("Dependent/spouse of a nonresident alien holding a US visa") for the reason for submitting form W-7.

AtlantaTaxExpert · May 13, 2009, 10:20 AM

Did the IRS process your return without your husband's dependency exemption? If so, you will need to amend the return using Form 1040X.

Five Rings · May 13, 2009, 10:54 AM

I'm sorry, I just meant box g. If you checked that one and got turned down please let me know.

It will take a couple days to get guidance from a policy analyst at the ITIN Unit as to the proper way to file and get the number. Hang in there.

cancarrie · May 13, 2009, 11:03 AM

The ITIN rejection letter said the return would be sent on without the exemption. However, the woman I talked to on the ITIN phone line said the return would likely not be sent on for 45 days.

I don't mind sending on the 1040X to amend if that makes life easier.
Do you think his name should go on line 33 of the 1040X as a dependent?
And do I also submit a corrected copy of the 1040NR? (With his name in box 7c?)
As a "married resident of Canada" on the 1040NR, what should I put for filing status on the 1040X: "single" or "married filing separately"? (He has no income so hasn't filed.)

Thanks so much for the quick responses!

AtlantaTaxExpert · May 13, 2009, 12:38 PM

If I were to file your amended return, I would list his name on BOTH the Form 1040X and the attached Form 1040NR with the SSN area BLANK. It may not be what CINTAX allows, but it is clearly what the IRS wants, and since the IRS controls the process, do what they want to get the exemption recognized.

If you want professional help, email me at [email protected].

Five Rings · May 13, 2009, 02:27 PM

ATE, where would you put his name on the 1040NR?

AtlantaTaxExpert · May 14, 2009, 08:42 AM

Five Rings, in Box 7c as a dependent. I have listed the spouse as a dependent for Indian student returns multiple times with no problem with the IRS.

cancarrie · May 14, 2009, 11:59 AM

Thanks for the suggestions. I will do that. I wonder if I should list filing status as "single" or "married filing separately" on the 1040X?

Five Rings · May 14, 2009, 02:38 PM

Absolutely not! You are not single.
File as married.
Try ATE's idea