Had a client who came into office, he is a U.S. citizen and is married legally in the U.S. to an ITIN holder (she is not legal here). When I reviewed his previous years tax return, he filed under "Head of Household" triggering over $3,500 of EIC (they have three children who have socials). My first impression is that they should have not put him as head of household, because if she is physically here in the U.S., for tax purposes she would be considered a resident and he would have to have filed under Married Filing Jointly or Separately with her, correct? They have 3 U.S. Citizen children. Please advice.
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Correct. If she she meets the Substantial Presence Test and qualifies as a Resident Alien, then Head of Household is not allowed (but it would be allowed if she had been a Nonresident Alien). -
Correct she has been in the US since 2013 and is a current ITiN holder. Now the question is also this, since she has not used her ITIN for more than 3 years, will she have to renew (I will have them file jointly and have advised them if the error of their previous returns). Please advice. I’m a new CAA so this is not quite explained in the manual.Originally posted by TaxGuyBill View PostComment
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Under the Protecting Americans from Tax Hikes (PATH) Act, ITINs that have not been used on a federal tax return at least once in the last three consecutive years and those issued before 2013 will expire. This year ITINs with middle digits 88 will expire Dec. 31, 2020. Additionally, ITINs with middle digits 90, 91, 92, 94, 95, 96, 97, 98 or 99, that were assigned before 2013 and have not already been renewed, will also expire at the end of the year.Comment
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