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One important thing nobody mentioned yet - if you DO make the election to treat your non-resident spouse as a resident for the full year, remember that FBAR filing requirements will apply to her too! That means if she had over $10,000 in foreign accounts at any point during the year, you'll need to report all those accounts. This caught me and my wife by surprise last year. We made the election but didn't realize we needed to report her overseas accounts, and got a nasty letter from FinCEN about it.
Oh wow, I hadn't even thought about the FBAR requirements! Do you know if there's a specific form for that or is it part of the regular tax filing?
The FBAR (Foreign Bank Account Report) is actually filed separately from your tax return. It's officially called FinCEN Form 114 and must be filed electronically through the BSA E-Filing System. It's not part of your regular tax filing with the IRS. The deadline is technically April 15, but there's an automatic extension to October 15 if you miss the April deadline. The penalties for not filing can be pretty severe - starting at $10,000 for non-willful violations - so definitely make sure you file if your wife's foreign accounts exceeded $10,000 at any point during the year.
Another option nobody mentioned - you could file as "Married Filing Separately" this year and then switch to "Married Filing Jointly" next year when she's been here longer. Sometimes that actually works out better financially depending on your specific situation and her foreign income.
But don't you lose a bunch of tax benefits if you file separately? Like I think you can't claim education credits and some other stuff.
Just a side note - if you're not a U.S. citizen and don't qualify for an SSN, you might have an ITIN (Individual Taxpayer Identification Number) as your TIN instead. That's what I have as a resident alien, and it works similar to an SSN for tax purposes but can't be used for things like Social Security benefits.
How difficult was it to get your ITIN? I'm helping my cousin who just moved to the US and needs to file taxes next year.
The ITIN application process wasn't super difficult, but it did take some time. You need to complete Form W-7 and provide original documents or certified copies from the issuing agency (like a passport). You can submit it with your tax return or in advance. The processing time was about 7 weeks for me, but I've heard it can take longer during busy periods. One tip for your cousin: if possible, use an IRS-authorized Certifying Acceptance Agent instead of mailing original documents. That way they don't have to part with their passport for weeks while the IRS processes the application.
When I first got my tax documents sorted out, I was confused by all these different ID numbers too. Basically: - Regular employees: SSN = TIN - Non-US citizens without SSN: ITIN = TIN - Businesses: EIN = TIN - Adoption taxpayer: ATIN = TIN The TIN is just the generic term the IRS uses to refer to whichever number applies to your situation.
What about for a trust? My parents set one up and I'm trying to figure out the tax situation.
The same thing happened to me when I worked at Domino's! The franchise was sold mid-year to a completely different owner. Check your husband's pay stubs throughout the year - you might notice the company name changed slightly at some point. Also, double-check that the combined income from both W2s matches what you'd expect for the full year's earnings. Sometimes during ownership transitions, there can be accounting issues where a week or two of pay gets missed.
I never thought to check his paystubs! I'll have him dig those up tonight. Do you remember if your tax withholding was affected when the ownership changed? That's the part that seems strange to me - one W2 has withholding and one doesn't.
Yes, the withholding situation definitely changed when ownership switched. The first owner withheld taxes properly, but the new owner classified me as an independent contractor for the first month before fixing it. That meant one W2 had normal withholding while the other had almost none. The paystubs should show exactly when the change happened. If you notice one of the employers wasn't withholding properly, you might owe more at tax time than you expected. It's better to find out now rather than get surprised with a tax bill!
Make sure you also check if one of the W2s shows any tips! Sometimes when delivery places change ownership, they handle tip reporting differently. One might include reported tips in Box 1 while the other might have them broken out separately in Box 8.
I wanted to add something about that $4,500 fee your friend's fiancรฉ mentioned. I'm a former tax preparer (not giving official advice), but that fee is WAY too high for what's likely needed in this case. A typical OiC application might cost $1,500-2,500 from a reputable tax professional, including preparing the unfiled returns. I'm concerned that: 1. The fiancรฉ might be getting kickbacks from whoever he's referring her to 2. The professional is overcharging by promising "guaranteed" results 3. They might file a boilerplate OiC that has little chance of acceptance Remember that ANYONE can request an installment agreement or apply for an OiC - these aren't secret programs. The value in professional help is proper preparation and documentation, not access to "secret" programs. Also, I'd be concerned about the fiancรฉ who promised to file her taxes and didn't. That's a major breach of trust, especially since it's causing penalties and interest to accumulate.
Thank you for this perspective! I've been really concerned about the high fee and the relationship dynamics. The fiancรฉ has been handling her finances for a while and I'm definitely worried he's not acting in her best interest. Do you think she should separate the tax issue completely from him at this point?
Based on what you've shared, I would absolutely recommend she handle this separately from her fiancรฉ. His track record isn't good - he failed to file her taxes for two years despite promising to do so, and now he's steering her toward an expensive service with unrealistic promises. This is a situation where she needs to take control of her own financial situation. She should consider getting a free consultation with a licensed EA (Enrolled Agent) or CPA who specializes in tax resolution to understand her real options. Many offer free initial consultations. She should go alone, without the fiancรฉ, to ensure she gets unbiased advice.
Just want to add one thing about bankruptcy and taxes - timing is SUPER important here. For income taxes to be dischargeable in bankruptcy: 1. The taxes must be income taxes 2. The due date for filing the tax return was at least 3 years ago 3. The tax return was filed at least 2 years before filing for bankruptcy 4. The tax assessment was made at least 240 days before filing bankruptcy 5. There was no fraud or willful evasion Since her taxes for 2022 and 2023 haven't even been filed yet, they almost certainly won't be dischargeable in bankruptcy. This means she'll still owe them after bankruptcy unless she uses OiC or another resolution method.
Ava Johnson
The real IRS never threatens arrests or demands immediate payment over the phone. They always send multiple written notices first. If you want to be extra safe, here's what I did when I got similar calls: 1. Didn't respond to the callback number 2. Independently looked up the IRS customer service number 3. Called and verified I had no issues (after waiting on hold forever) 4. Added my number to the Do Not Call registry (doesn't stop all scammers but helps) 5. Blocked the scam numbers on my phone The worst part is these scammers specifically target elderly people and immigrants who might be more fearful of government authorities.
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Miguel Diaz
โขDo you remember what the official IRS number is? I got one of these calls yesterday and now I'm paranoid even though I'm 99% sure it's a scam.
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Ava Johnson
โขThe general IRS customer service number is 800-829-1040. When you call, be prepared for a long wait time, and have your tax return handy as they'll ask verification questions to confirm your identity. I recommend calling early in the morning right when they open or later in the evening before they close as those tend to have shorter wait times. You can also try calling mid-week as Mondays and Fridays are typically their busiest days.
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Zainab Ahmed
Has anyone actually fallen for these scams? My grandmother almost sent them $4,000 in gift cards because they said she'd be arrested if she didn't pay immediately. The scary part was they had her actual name and the last 4 digits of her SSN (probably from some data breach). They kept her on the phone for hours so she couldn't call anyone else to verify.
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Connor Byrne
โขYes, these scams are successful enough that they keep doing them. My coworker's father lost $12,000 to an IRS scammer last year. They told him he had outstanding tax bills and would be arrested at work the next day if he didn't pay. They kept him on the phone for 5 hours while he went to different stores buying gift cards. He was too embarrassed to tell anyone until weeks later.
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