Renew ITIN with 1040NR

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sjantzi
Posts: 67
Joined: Wed Feb 20, 2013 11:44 am

Renew ITIN with 1040NR

Post by sjantzi »

I'm getting mixed information from the idiots at the IRS. After spending almost 5 months trying to renew my kids ITINs I need to start over from scratch. One agent told me to include the applications with my 2016 tax return (1040NR) but mail it to the ITIN department in Austin and they would process the W7's then forward my tax return to be processed. Another agent told me NOT to do this that it would cause problems.

Please, any advice at this point would be appreciated.
nelsona
Posts: 18314
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Post by nelsona »

Personally, now that they have f'ed up your W-7s, I would file my 1040NR using the old ITINs, to the normal address.

I would separately send the new w-7s to Austin. Then, when they kick out your 1040NR for old ITINS, you will have started (again) the process with the ITIN office., and you can work from there.

I would NOT send the W-7s and 1040NR together,.

Remind me again: Why you need these ITINs? How has filing these dependents helped you in past years? Is it actually saving you tax money overall?
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing :D
sjantzi
Posts: 67
Joined: Wed Feb 20, 2013 11:44 am

Post by sjantzi »

Lowering my USA tax allows me to invest more into RRSPs
sjantzi
Posts: 67
Joined: Wed Feb 20, 2013 11:44 am

Post by sjantzi »

I can give more detail if ya like
nelsona
Posts: 18314
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Post by nelsona »

I thought I remember that you already contribute to 401(k). That should limit you on RRSP, no?

I am obviously aware of the fact that adding dependents lowers US tax -- and that working to lower US taxes can boost the 'value" of RRSP contributions. I've been writing about this for 15 years.
Aren't they already below the Cdn taxrate, even if you use the remainder of your RRSP contribution room? Does adding the kids lower them "too much"?

Do you use XXV(2)? Or does that method lower your taxes "too much" as well.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing :D
sjantzi
Posts: 67
Joined: Wed Feb 20, 2013 11:44 am

Post by sjantzi »

I wasn't implying you didn't know, I was offering my numbers.

I stopped 401k contributions. My intention is to retire early (50) and I cant stomach the penalty for early withdrawals.

I do XXV(2).

Having 2 dependents lowers my USA tax by about $2k allowing me to add an addition $6k to my RRSP
nelsona
Posts: 18314
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Post by nelsona »

We may have discussed this already, but even with the penalty your US tax on the 401(K0 will probably be lower than Cdn tax, since the 401(k) is connected income. And the penalty on 40(k) goes away if you work til 55.

Too bad you can't Roth, as a Cdn resident.

Anyhow, I see your need to get your dependents included. Besides, the more Cdn tax you do pay, the bigger your deduction on your XXV(2)
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing :D
sjantzi
Posts: 67
Joined: Wed Feb 20, 2013 11:44 am

Post by sjantzi »

Your correct even with the penalty its still lower than Cnd tax but I found that the lower my USA tax (in retirement) the more I can split with my wife (using spousal RRSP) and lower our total tax further
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