Welcome back! Ask questions, get answers, and join our large community of tax professionals.
cancel
Showing results for 
Search instead for 
Did you mean: 

ITIN tax return

Highlighted
Level 3

I have proseries basic downloaded on my desktop- i want to file tax return for someone who has an ITIN number what tax form do i use.

Labels (1)
0 Cheers
1 Solution

Accepted Solutions
Highlighted
Level 15

Yes, undocumented worker.  That's what I was saying all along.  What you mentioned about treaty test allowing Mexican to work in the US is incorrect and irrelevant.  If you didn't withhold these key facts, I could have given you a clear answer much earlier.

Provided your client was living in the US, albeit illegally, during all of 2019, he/she is a resident alien by substantial presence test and will be subject to tax on a worldwide basis like any US citizen.  A F.1040 is what you need to file for your client.

---------------------------------------------------------------------------------
Still an AllStar

View solution in original post

16 Replies 16
Highlighted
Level 15
Level 15

Are they a US resident?  If so, then the same one youd use for any other US resident with a SSN.


♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
Highlighted
Level 3

The are not US Citizen but live and work in the USA with ITIN number

0 Cheers
Highlighted
Level 15

If your statement is correct, your client could be in breach of immigration regulations but that does not negate his/her filing requirements.  You would prepare the return based on whether he/she was a resident alien by Substantial Presence Test, taking into account various elections and exceptions available under §7701 as well as treaty articles, where applicable.

A non-citizen who is not a green card holder with only an ITIN is not authorized to work in the US (unless he/she was in the US only on business trips and the activities were within the limits of a B1/B2 visa).  So, there may be more to worry about than tax and, if true, he/she should be advised to consult an immigration attorney.

 

---------------------------------------------------------------------------------
Still an AllStar
Highlighted
Level 3

None resident aliens work in the USA and file their taxes using ITIN. In proseries professional there is 1040 NR so i need a professional in that subject matter to answer my question.

0 Cheers
Highlighted
Level 15

That's what I do but I'm not understanding your statement.

---------------------------------------------------------------------------------
Still an AllStar
0 Cheers
Highlighted
Level 15
Level 15

Does he file a 1040NR or a 1040? I think this is basically his question.


♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
0 Cheers
Highlighted
Level 3

yes- so what is the answer

0 Cheers
Highlighted
Level 15

@itonewbie wrote:

If your statement is correct, your client could be in breach of immigration regulations but that does not negate his/her filing requirements.  You would prepare the return based on whether he/she was a resident alien by Substantial Presence Test, taking into account various elections and exceptions available under §7701 as well as treaty articles, where applicable.

A non-citizen who is not a green card holder with only an ITIN is not authorized to work in the US (unless he/she was in the US only on business trips and the activities were within the limits of a B1/B2 visa).  So, there may be more to worry about than tax and, if true, he/she should be advised to consult an immigration attorney.


@Getcorp That was my answer and still is my answer.  There is not sufficient info from your post to make a determination but these are what you need to consider.

---------------------------------------------------------------------------------
Still an AllStar
0 Cheers
Highlighted
Level 15

If your client was a resident alien, it'd be a 1040.  Otherwise, it'd be a 1040NR.

It could be that your client is a dual-status resident, in which case, you'd file a 1040 or 1040NR return based on the status as of the end of the year but attach a 1040NR or 1040 statement for income reportable for the earlier period.

---------------------------------------------------------------------------------
Still an AllStar
0 Cheers
Highlighted
Level 15
Level 15

@Getcorp   maybe this will help you decide

https://www.irs.gov/individuals/international-taxpayers/aliens-which-form-to-file

 


♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
0 Cheers
Highlighted
Level 3

they are mexican with ITIN and i know the treaty test allow them to work in the USA. so you are say i should use what form - ?

0 Cheers
Highlighted
Level 15

No, Mexicans are not automatically authorized to work in the US.

Also, whether they work in the US is not relevant to their tax status.  Their tax status is determined by §7701(b) and, primarily, substantial presence test, which is a simple day-counting exercise.  Their tax status, in turn, determines how their income would be taxed.  Resident aliens are taxed on worldwide basis whereas nonresident aliens are generally taxed only on US-source income.  These basic concepts are fundamental to foreign national taxation.

As I said, there are various elections and exceptions that would need to be considered.

---------------------------------------------------------------------------------
Still an AllStar
0 Cheers
Highlighted
Level 3

i never said that they are automatically  have right to work. i said which form do i use for a taxpayer with ITIN, 1040 or 1040NR

0 Cheers
Highlighted
Level 15

I have explained the rules for 1040 vs 1040NR.  You may like to do a bit more homework to understand the application or refer the work to a specialist.

As for authorization to work, if your client was authorized, he/she would have been issued an SSN and would not be using an ITIN.  Enough said.  I am not here to convince you but thought you should be aware for your own practice protection and to advise your client of the potential issues.

---------------------------------------------------------------------------------
Still an AllStar
Highlighted
Level 3

we have undocumented immigrant working in the USA who do not have social security and for tax purposes only the IRS gives them ITIN to file their income tax.  The process does not legitimize their status.  I am asking which 1040 form do i use to file their taxes . i have proseries basic. Can someone answer my question.

0 Cheers
Highlighted
Level 15

Yes, undocumented worker.  That's what I was saying all along.  What you mentioned about treaty test allowing Mexican to work in the US is incorrect and irrelevant.  If you didn't withhold these key facts, I could have given you a clear answer much earlier.

Provided your client was living in the US, albeit illegally, during all of 2019, he/she is a resident alien by substantial presence test and will be subject to tax on a worldwide basis like any US citizen.  A F.1040 is what you need to file for your client.

---------------------------------------------------------------------------------
Still an AllStar

View solution in original post