Filing 1040NR.

This is our main tax information forum which deals with topics concerning Canadians living and working in the U.S., U.S. citizens contemplating working in Canada, and all aspects of Canadian and U.S. income tax and related adminstrative issues.

Moderator: Mark T Serbinski CA CPA

Post Reply
tony
Posts: 97
Joined: Tue Oct 18, 2016 8:50 pm

Filing 1040NR.

Post by tony »

1. Does US have a free sotware to download like the one in Canada CRA website?
2. My wife and my son don't qualify to apply for SSN as they're under me TN VISA. So, they have to apply for ITIN (first time). Do we have to fill up 1040NR form first and submit at the same time at the office? When we apply ITIN at the SSN office?

quoted from IRS:
If you’ve never had an ITIN before and are submitting an application for the first time, you must bring your complete original tax return(s) for which the ITIN is needed.

3. Can I submit 1040NR with my wife and son not having ITIN?
4. ITIN takes 8 weeks, but late filling will incur penalty. what should I do?

thanks
nelsona
Posts: 18311
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Post by nelsona »

1. Yes, but not for 1040NR. Is there a particular reason you would file 1040NR instead of regular 1040? Do you not live in US?
2. Yes, W-7's are submitted with the first return they appear on, but not to an SSN office, they are sent to IRS (or can now be walked-in to certain agents). look at the instructions for W-7 documentation because they are quite stringent.
3. Yes, but you will not get the exemptions you are entitled to.
4. You need to file to get ITIN, so there is nothing to be late for. You only need to file on time if you owe monry. If IRS owes you money you can file severa lmonths late.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing :D
nelsona
Posts: 18311
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Post by nelsona »

If you live in Canada and are reporting you US income on your CRA return, then I wouldn't necessarily put much effort to get an ITIN, as most likely your tax savings will simply be eaten up by CRA, due to lower foreign tax credit.

Also, if you are a Cdn resident, and you do think you need to reduce your US tax, you should be looking at filing a XXV version of 1040NR, which you can read about in other posts.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing :D
tony
Posts: 97
Joined: Tue Oct 18, 2016 8:50 pm

Post by tony »

thanks , understood.
1040NR as I live since nov 2016.
SergeP
Posts: 73
Joined: Mon Mar 09, 2009 10:38 pm
Location: hawaii

Post by SergeP »

There is a Free File Software list on the IRS e-file site. One of the listed software, OLT.com, has 1040 NR option for filing US taxes. There are certain limits for its use like your income and your age. I have not tried it yet but may do this year.
Serge
ND
Posts: 291
Joined: Thu Feb 21, 2013 5:28 pm

Post by ND »

RE: 3. Can I submit 1040NR with my wife and son not having ITIN?
4. ITIN takes 8 weeks, but late filling will incur penalty. what should I do?

You mail the W-7 & 1040NR to ITIN dept (not 1040 dept) and internally your return is sent to the tax return dept and when the ITIN dept issues the ITIN it is assigned to your return. Thus, you have timely filing, same as if you filed the 1040 without the W-7. So, there is only disadvantage of skipping the W-7 (when needed), to ty to be more timely on 1040 by filing it alone.

In fact IRS sometimes bungles the process of taxpayers who file returns without ITINs and later file for ITIN alone and it takes some time to sort out IRS records to have one name matched to one TIN alone for each return.

If you do not appy for ITINs and thus do not reduce your IRS tax liability, can CRA disallow FTC on your T1 by the amount that you did not reduce your US tax liability? I have seen CRA issue FTC disallowance notices with such logic but not for this particular argument.
tony
Posts: 97
Joined: Tue Oct 18, 2016 8:50 pm

Post by tony »

thanks, understood now
Post Reply