Need advice

[Chief]

on amended return. A man filed return joint after his first wife died in 2005. He remarried in 2005 and filed amended return with new wife for 2005. Now IRS is stating that a return for first wife is due. She only had small ssn income. The first part of that year she shared investment income, interest, etc with husband.
Do I file 1040X for her based on the original return or a separate 1040 now? The income for first wife can be derived by prorating his income. All the income was reported on the 1040X with the new wife. Am I correct in preparing a new 1040X for them as well.
I am dense in my thinking and would appreciate any help or advice given.

[Snaggletoof]

How was the Original Filed?

for 2005? Joint return with Husband and Wife#2? Joint return with Husband and Wife #1? Any other possibilities?

If, for example, Wife #1 was never listed on ANY return, then there is no 1040X for her because she never filed to begin with.

Seems like this came up a year or two ago and we discussed it on the board.

[BOB W]

I believe wife #1 needs to file MFS. Her SS will be 100% included. Is this a community property state? If no, only her income needs to be reported.

[Chief]

for 2005? Joint return with Husband and Wife#2? Joint return with Husband and Wife #1? Any other possibilities?

If, for example, Wife #1 was never listed on ANY return, then there is no 1040X for her because she never filed to begin with.

Seems like this came up a year or two ago and we discussed it on the board.

Original return filed joint with wife #1. 1040X with wife #2. So wife #1 files 1040X now.Fl is not a community property state. Does that mean that none of his income is joint income. I am little confused here. If that is the case then wife #1 has no income other that a small ss income. In that case no 1040X is due. Help.

[abby]

1040, in my opinion

When he filed the 1040X with his new wife, he effectively removed his 1st wife's income from the original return, so that another 1040X wouldn't be required.

If she has no filing requirement, then that may be something that can be stated in response to the notice requesting a return.

If he claimed all the income except the Soc Sec income on his amended return, then it appears she would not have a filing requirement.

If he earned all the other income, then that seems correct - but if he incorrectly claimed part of his first wive's income, then he may need to amend again and a 1040 (MFS) might be required for the first wife. I'm not completely clear from your post if some of the other income belonged to the first wife besides the Soc Sec.

Hope that helps.

[Snaggletoof]

1040 for first wife

Chief, thanks. I think you were probably clear on the facts with your first post but for some reason I was foggy.

Husband by refiling with 2nd wife left 1st wife in a status of not having filed.

I would file a 1040 on the first wife, and claim whatever income was attributable to her, as a married and separate status. There is no "first column" on the 1040X if you try to file one. The preparer will also have to list her husband's SS# on the return since this is a requirement for a return with MFS filing status. I don't know what that will do to the husband if the IRS takes that number and runs it through their matching/tracking system.

Maybe someone with IRS experience can tell us the fate of her husband's number as their computers gag and sputter, trying to figure out what to do...

[joanmcq]

I didn't think you could go from joint to MFS, which is what you would be doing to the first wife. But as MFS, all of her SS would be taxable, and she would have to take itemized deductions if they itemized on the new return.

But since the amendment forced the 1st wife to go from joint to MFS, I think the amendment would be void, and wife no 2 is stuck with MFS.

[abby]

MFS vs MFJ

I don't believe MFJ is allowed with the first wife if you remarry before the end of the year, therefore he had to correct his original filing.

I do agree that the Soc Sec is not excluded in considering if she has a filing requirement when MFS, but if the amount is small enough, she might still be below the filing requirement of $3300.

How are we doing, Chief? Has this been of any help?

[erchess]

I'm terribly confused

In what month and year did the first wife die?

In what month and year and for what year did the surviving spouse last file a Joint Return with his late wife?

In what month and year did the surviving Spouse remarry?

In what month and year was that return with the late spouse amended to be joint with his new wife?

[ED SMITH]

Wife #1 is

Dead. She can't file a return. Send a copy of the death certificate along with the letter requesting the return. Hopefully, that will take her out of the system. If they keep sending letters, just ignore them. She will never get SFR'd if the only income is SS.

Another option would be to file a return marked deceased, but the question then becomes, can the husband sign it.

[Chief]

Need advice

I don't believe MFJ is allowed with the first wife if you remarry before the end of the year, therefore he had to correct his original filing.

I do agree that the Soc Sec is not excluded in considering if she has a filing requirement when MFS, but if the amount is small enough, she might still be below the filing requirement of $3300.

How are we doing, Chief? Has this been of any help?

Yes, this has been helpful. SS income for first wife is $675. That is all her income. However 1st wife and husband jointly owned a condo in Hawaii. Purchased on 11/13/84 and sold on 06/30/05. Already reported on amended return with 2nd wife including recpature of deprec. and net gain. Also reported same on Hawaii return. First wife died on 04/07/2005. Do I need to include this on first wife's return (I dont think a return is required) if I dont include the condo sale. It is already included on husband's return with 2nd wife.

[Chief]

Need advice

In what month and year did the first wife die?

In what month and year and for what year did the surviving spouse last file a Joint Return with his late wife?

In what month and year did the surviving Spouse remarry?

In what month and year was that return with the late spouse amended to be joint with his new wife?

So am I.

4-2-05
4-15-06
11-01-05
06-01-06

[Chief]

Dead. She can't file a return. Send a copy of the death certificate along with the letter requesting the return. Hopefully, that will take her out of the system. If they keep sending letters, just ignore them. She will never get SFR'd if the only income is SS.

Another option would be to file a return marked deceased, but the question then becomes, can the husband sign it.

I am thinking of the return with husband signing as surving spouse. That's the best I can come up.Thanks for your suggestion. I will have the husband enclose a copy of the death certificate.

[veritas]

From Pub 501

SPOUSE DIED DURING THE YEAR. If your spouse died during the year, you
are considered married for the whole year for filing status purposes.

If you did not remarry before the end of the tax year, you can file a
joint return for yourself and your deceased spouse. For the next 2 years,
you may be entitled to the special benefits described later under
QUALIFYING WIDOW(er) WITH DEPENDENT CHILD.

If you remarried before the end of the tax year, you can file a joint
return with your new spouse. Your deceased spouse's filing status is
married filing separately for that year.

[abby]

condo sale

If the condo was indeed sold after the 1st wife's death, then it was inherited, I'm imagining it was joint ownership with rights of survivorship, by her husband and the sale accrues only to him with a step up basis for her share (in a non community property state).

If there was no other income from the condo - rental, etc, before the date of death in 2005, then I think she has less income than would trigger a filing requirement.

You can file a no tax due MFS return, to put it to bed - or respond to the notice stating she was below the $3300 MFS filing required threshold.