I need help in more ways than 1

[m2thestars]

Questions regarding W-7 form

What is the name of your state?What is the name of your state? Arizona

issue(s): married to a resident alien in november 2004. He has no SSN# He is self-employed and his only income is from record sales through his record label. Income received is approx $4000.00 and expenses on the label are approx. $9000.00. Showing loss only. He did not receive any tax forms/1099's/ ect. for any income earned. Does he have to show his income/loss on a tax return regardless? If so, then do I need to submit the W-7 form with the return so that he may be assigned an EIN#? Also, because the issuance of the EIN number takes 4-6 weeks will we be penalized for the time lapse even if we submit the taxes by the 15th? Should I file married joint or separate? I am uncertain because I do not want to be responsible for his tax liability should the IRS determine he owes taxes. Does filing separately even protect me from such a situation? In addition, I purchased a new home in 2004. I have no idea what I should be itemizing to receive the greatest benefit. If I file married joint and don't claim any of Husbands business loss, and don't include a w-7 form, not claiming him as a dependant either, will my return be rejected? PLEASE HELP ME!!

 

[Snipes5]

There are several issues here:

1) If your husband does not have an SSN, he is NOT a Resident Alien, he is either a visitor or an illegal alien. Also if he doesn't have an SSN he is not legal to work in this country. I would say that is your primary problem.

2) Does he have an ITIN? If he does, he does not need to file form W-7 which is the form he would use to obtain an ITIN. An ITIN is what is given to someone who is eligible to be listed on another's tax return, but IS NOT ELIGIBLE for an SSN.

3) Do not file with him until this mess is sorted out. If he needs to file, he can file MFS at some point, or can possibly even file a form 1040NR, depending on how long he's been here. You can file MFS, and at this point that might be the better option.

4) An EIN is an Employer Id Number. That is for people and companies who employ others. That will not allow him to file an individual tax return.

If his expenses are more than his income, he won't owe taxes, but I would be wary of filling a tax return with him anyway, based on my comments above.

If you came to my office I would probably refer you to an attorney, either Immigration or Tax. You may need both.

Snipes