Filing issues for resident alien when spouse lives abroad - ACA twist also

[FEDUKE404]

Client is/has been working in US under an L-1 visa. In the recent past he has appropriately filed a Form 1040, i.e. not a Form 1040-NR.

During 2014, he married. His wife did not live in the US at any time (resident of India) during 2014, and she plans to move to the US in spring of this year. She will be under an L-2 visa. At the present time, she has no SSN but application is in the system. Their visas will apparently switch to H-1 and H-2 in the next year or so.

For 2014, couple plans to file married filing jointly, which they can do after they make the optional choice to treat wife as a resident alien for 2014. (See Publication 519, page 9, for the necessary statements et al.) It is likely they will make the same choice for 2015, otherwise the wife would be viewed as a dual-status alien. For 2014, the world-wide income of the newlyweds is essentially the husband's US wages and some US bank interest income. Same will likely continue for 2015.

Now for the fun:

• Can the couple electronically file a 2014 MFJ return when the spouse has no SSN? (I don't think so!)
• Can the couple paper file a 2014 MFJ return when the spouse has no SSN? (I think perhaps.)
• The spouse was not present in the US for 2014. Is she exempt from ACA required coverage? (I think so. . .but shown how/where? I don't think merely checking the box on Form 1040, line 61 is sufficient.)
• The spouse will be present in the US for nine or ten months of 2015. Will she then also be required to obtain appropriate ACA coverage (it may be available through husband's employer)? (I think so. But, if not, what about the first few months of 2015 when she was living abroad? Concern is similar to above question.

My "best guess" at this time is to tread water until spouse gets her SSN (perhaps even use filing extension) and then efile a 2014 MFJ return. Of course, then you have to ask what options exist for filing Form 4868 when Box 3 information would also be unavailable. Paper file a Form 4868??

Any help will be appreciated. I've never encountered this combination before, and the situation is further complicated now by the ACA mess.

FE

[mactoolsix]

I just sent you a PM - maybe it will help.
Mike

[Gretel]

Bummer - I was so much looking forward to your response.

[mactoolsix]

Bummer - I was so much looking forward to your response.

Gretel - I referred FEDUKE to an acquaintance that specializes in the exact problem he is trying to solve.

Maybe if and when he gets the answer he'll post it for all of us.

Mike

[FEDUKE404]

Filing process is the main question

Gretel - I referred FEDUKE to an acquaintance that specializes in the exact problem he is trying to solve.

Maybe if and when he gets the answer he'll post it for all of us.

Mike

I don't think there is much dispute over what the taxpayers can do, namely file MFJ as residents within the guidelines stated in the IRS publication. (I did my homework on that before the OP.)

My concern is the logistics of having to deal with the "how": not yet having a SSN for new wife, how/when that will impact filing (electronic/paper) of their 1040 tax return, as well as a likely federal filing extension. I was hoping someone on the TTB board had some "school of hard knocks" knowledge and could respond to those issues.

I guess I can forward my OP to the acquaintance, but info provided for that person appears to be mainly related to matters of when/how to file (or not to file) a NR return, as well as dealing with folks in foreign embassies et al.

My client is quite well versed on the filing rules, as several coworkers have had similar personal tax situations. At least one person had his tax return prepared at the green box place. But those returns were prepared before ACA reared its ugly head this year. . . .

I still have time to resolve this problem, as I think we're pretty much dead in the water until the wife gets her SSN.

Thanks again for all input!

FE

[Gretel]

My concern is the logistics of having to deal with the "how": not yet having a SSN for new wife, how/when that will impact filing (electronic/paper) of their 1040 tax return, as well as a likely federal filing extension. I was hoping someone on the TTB board had some "school of hard knocks" knowledge and could respond to those issues.

I still have time to resolve this problem, as I think we're pretty much dead in the water until the wife gets her SSN.

Thanks again for all input!

FE

The issue of the pending SSN is exactly what I need to know, especially filing a paper return with "pending" in the SSN field - and if done so if this is considered a timely filed return or if IRS simply would reject.

[FEDUKE404]

Filing issues

The issue of the pending SSN is exactly what I need to know, especially filing a paper return with "pending" in the SSN field - and if done so if this is considered a timely filed return or if IRS simply would reject.

PRECISELY!! And a similar question would apply to a (likely) to be filed Form 4868 if we have to wait for a SSN.

Anyone care to take on the 800 lb gorilla in the room....my ACA questions? ? ? My best guess, for 2014, is to use Form 8965 with Code C in Part III. For 2015, things could get tricky, but hopefully client has now put wife on his employer insurance policy.

FE

[TaxGuyBill]

For any months that she qualifies for the 330 day Physical Presence Test of living OUTSIDE of the United States, claim Code "C" for her.

From your descriptions, she would qualify for the Code "C" exemption for all of 2014 and the first few months of 2015. After that, she will need to have insurance or owe the penalty.


As for the SSN, I don't know much about this, but wouldn't you just file by paper with a W-7 applying for an ITIN?