# US Tax, non-resident spouse



## RetiredAbroad (Feb 3, 2019)

RE: US Tax, IRS Form 1040 

I'm a US citizen. I live outside the USA. My husband is not a US citizen, and thus I don't want to report his income to the IRS. 

In past years, under "Filing Status", I was instructed to check MARRIED FILING SEPARATELY and also write my non-resident alien husband's name in that same section, and then write "NRA" on the "Spouse's Social Security Number" line at the top of the Form 1040. 

Well, I just noticed that on the 2018 Form 1040, there no longer is a space for the spouse's name next to "Married Filing Separately." The only line on the Form 1040 where I could enter my husband's name clearly says, "_If joint return, spouse's first name and initial / Last name"_. It's not a *joint* return, so it doesn't seem correct to put his name there. 

Does anyone know about this? Where should I put my husband's name (if anywhere) on the paper Form 1040, and should I or shouldn't I write "NRA" in the Social Security number space, as in past years?

I've looked at the 2018 instructions for both Form 1040 and Form 2555 but haven't been able to find anything about this yet. But I'll keep looking.

If anyone knows, please advise. Thank you.


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## Bevdeforges (Nov 16, 2007)

Have moved you over to the Expat Tax section, since I suspect you won't be the only non-resident taxpayer to have this question this year. 

The place to fill in your NRA spouse's name on the new "and improved" 1040 form is in the top most line - where you check off your filing status. After the words "Qualifying widow(er)" there is a blank space and this is where the Free File Fillable forms put my NRA spouse's name when I indicated that I was filing "married, filing separately." Not exactly intuitive, but then again when has any of the tax stuff been? (Oh, and I've already filed and received my refund, so I'm assuming I did something right.)


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## susan85 (Dec 2, 2018)

Bevdeforges said:


> Have moved you over to the Expat Tax section, since I suspect you won't be the only non-resident taxpayer to have this question this year.
> 
> The place to fill in your NRA spouse's name on the new "and improved" 1040 form is in the top most line - where you check off your filing status. After the words "Qualifying widow(er)" there is a blank space and this is where the Free File Fillable forms put my NRA spouse's name when I indicated that I was filing "married, filing separately." Not exactly intuitive, but then again when has any of the tax stuff been? (Oh, and I've already filed and received my refund, so I'm assuming I did something right.)


Slightly off topic maybe, but why would you be receiving a refund or have any real dealings in that sense, being abroad?


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## Bevdeforges (Nov 16, 2007)

susan85 said:


> Slightly off topic maybe, but why would you be receiving a refund or have any real dealings in that sense, being abroad?


I receive a US Social Security benefit (plus am drawing on my US IRA account these days), so have to pay US tax on 85% of the SS plus the IRA withdrawals. I arrange to have withholding taken from my IRA withdrawals to cover the whole shebang, hence the refund.


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## xUSCAL (Dec 21, 2018)

*IRA / Social Security issues*



Bevdeforges said:


> I receive a US Social Security benefit (plus am drawing on my US IRA account these days), so have to pay US tax on 85% of the SS plus the IRA withdrawals. I arrange to have withholding taken from my IRA withdrawals to cover the whole shebang, hence the refund.


This maybe a little bit off topic, but still quite related in some ways. Like you, I'm also receiving Social Security benefits and drawing substantially on my US IRA account. My total IRA withdrawals came to over US$250K so expect to pay a lot of tax for 2018 (my final tax return). But unlike you, I renounce US citizenship last year. 

Henceforth, from 2019 I won't need to file any tax return. But I still need to draw down the balance from my IRA account and I know it will be subject to 30% federal withholding. Here are some questions:

1) My IRA accounts are still registered as US citizens as I have not figured out how to change them from here. There is no option to file Form W8-BEN on their website. If I change my address to "foreign", will this do the trick? 

2) When I make withdrawals now, and chose to make 30% federal withholding, it automatically take off an additional 10% California withholding. But I don't want that as I should not be paying State tax since I don't live there for the last two years. How do I fix this?

3) if I withdraw all my IRA balances this year, will I only be subject to maximum 30% tax (as a NRA) or will it be higher if I go over the 30% tax bracket?

4) Will my social security be subject to 30% withholding as well? Currently, I get only $1,061/month as again I have not figured out how to inform SSA from where I am.

5) Maybe I need to make a trip back to US to take care of all these?

Any advice or comments appreciated.


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## Bevdeforges (Nov 16, 2007)

xUSCAL said:


> 1) My IRA accounts are still registered as US citizens as I have not figured out how to change them from here. There is no option to file Form W8-BEN on their website. If I change my address to "foreign", will this do the trick?


It depends on the institution holding your IRA, but changing your address to "foreign" should at the very least draw some sort of reaction from them. 



> 2) When I make withdrawals now, and chose to make 30% federal withholding, it automatically take off an additional 10% California withholding. But I don't want that as I should not be paying State tax since I don't live there for the last two years. How do I fix this?


Again, changing your address to "foreign" and having your withdrawals wired to a foreign bank account should make the point. (Some financial institutions have policies where they "must" withhold the 30% for any transfers to a foreign bank or other address.


> 3) if I withdraw all my IRA balances this year, will I only be subject to maximum 30% tax (as a NRA) or will it be higher if I go over the 30% tax bracket?


As long as you are on their books as a non-citizen/foreign address, it should only be the 30% withholding. But you may want to check their customer service line to be sure.


> 4) Will my social security be subject to 30% withholding as well? Currently, I get only $1,061/month as again I have not figured out how to inform SSA from where I am.


Social security requires you to file a change of address and every other year sends you a confirmation form that asks if anything has changed. You should very definitely report your renunciation to them. And yes, they will withhold 30% of 85% of your benefit.


> 5) Maybe I need to make a trip back to US to take care of all these?


It shouldn't be necessary to make a trip back to the US for this. Try calling the customer service line for your IRA holder first. And then, see if there is a Federal Benefits Unit at your local US Consulate or Embassy. They can handle the change of address and status (possibly even online).


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## amphitecna2019 (Mar 26, 2019)

Bevdeforges said:


> Have moved you over to the Expat Tax section, since I suspect you won't be the only non-resident taxpayer to have this question this year.
> 
> The place to fill in your NRA spouse's name on the new "and improved" 1040 form is in the top most line - where you check off your filing status. After the words "Qualifying widow(er)" there is a blank space and this is where the Free File Fillable forms put my NRA spouse's name when I indicated that I was filing "married, filing separately." Not exactly intuitive, but then again when has any of the tax stuff been? (Oh, and I've already filed and received my refund, so I'm assuming I did something right.)


I have spent all day fighting with the free fillable forms site, trying to get my return accepted. Once again Bevdeforges, you have clarified things. Thank you, thank you.

My fingers are crossed that with the above information, which you are 110% correct was neither intuitive NOR, I might add indicated in the instructions. After 3 rejections- I got down and dirty with those. Hopefully just growing pains with the new version of the forms. The other times I submitted, the forms were rejected within 10 minutes. That time frame has passed. Fingers crossed that 4th time's the charm!


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## Bevdeforges (Nov 16, 2007)

ONLY 3 rejections? I went through at least 6 or 7 before I found the "magic formula" - and I'm still not entirely certain what I ultimately did right. But once that refund hit my US bank account, I stopped worrying about it. <bg>


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## amphitecna2019 (Mar 26, 2019)

Ha, because once I hit 3 and was about to throw my computer out the window, I knew I couldn't be the only one and that the answer was bound to be here. Still hasn't been rejected, so I'm getting more hopeful.

Why is it such a PIA for us expats? EVERY year I go through something stupid, as I'm sure do you. Out of curiousity, do you use the free-fillable forms, or have you found a program that will allow you to file with an NRA spouse with no SSN? At least the foreign address thing has been solved.


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## amphitecna2019 (Mar 26, 2019)

Woo hoo!!! Just got the accepted email. [happy dance]. Thank you Bev!!!!!! You really are a lifesaver.


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## Bevdeforges (Nov 16, 2007)

amphitecna2019 said:


> Why is it such a PIA for us expats? EVERY year I go through something stupid, as I'm sure do you. Out of curiousity, do you use the free-fillable forms, or have you found a program that will allow you to file with an NRA spouse with no SSN? At least the foreign address thing has been solved.


Basically, the whole system is set up and run for those who live in the US. Anything related to us expats is pretty much an afterthought - and they can't bear the idea that we should get away without paying US taxes even though we are no longer resident there.

This year is the first time I have been able to file using the Free File Fillable forms, because when filing for my US Social Security, I also filed so that my French spouse could receive his benefit. (Hey, every little bit helps - and it's the least they can do for us after all the aggravation.) However, to receive even just the spouse benefit, he needs a US Social Security number. NOT an ITIN, but a real SSN - however it is plainly marked as NOT being valid to work in the US. So, I now have a SSN for my NRA spouse, which I use on my "married, filing separately" return. 

The number of options of e-File programs that work for expats with NRA spouses is limited - and seems to get moreso every year, due to age restrictions, as well as other requirements (like you have to file a state return for a fee in order to get free filing of a federal return). 

Actually, this has been the first year for which I could e-file at all (using the Free File Fillable forms). Before that I have always printed out the forms and mailed them in.


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## mchjlh (Jun 6, 2013)

Bevdeforges said:


> ONLY 3 rejections? I went through at least 6 or 7 before I found the "magic formula" - and I'm still not entirely certain what I ultimately did right. But once that refund hit my US bank account, I stopped worrying about it. <bg>


Bev, your posts are always so helpful! Question: When you e-file with free file fillable forms, do you not need to attach any additional info? Or, if you do add pages, how?

We use those forms, but then we snail mail our return because we add three single page attachments: for Form 8938 Part V, Form 8938 Part VI, and our calculation of Foreign Tax Carryover over the years.


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## Bevdeforges (Nov 16, 2007)

In the instructions to the Free File Fillable forms, there is a link to the list of "known issues" with the forms available through the program. I think there are a couple of the forms that require "attachments" and the list will indicate whether or not you can just attach a scan of whatever it is. In a few cases, you simply can't file a particular form and that, too, is indicated in the instructions. ´

Unfortunately, if you need to file a form that isn't available through the program, you're kind of stuck filing on paper.


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## byline (Dec 5, 2011)

RetiredAbroad said:


> Well, I just noticed that on the 2018 Form 1040, there no longer is a space for the spouse's name next to "Married Filing Separately."


I had to search the instructions to find where to put the NRA spouse’s name. It’s over in the space to our right of the "Qualifying widow(er)" checkbox. NRA still goes in the “Spouse’s social security number” field. (I filed a paper Form 1040.)

From page 15, Married Filing Separately, for the Line Instructions for Form 1040:



> Check the “Married filing separately” box at the top of Form 1040 if you are married and file a separate return. *Enter your spouse’s name in the entry space at the far right of the filing status check-boxes (next to “Qualifying widow(er)”).* Be sure to enter your spouse’s SSN or ITIN in the space for spouse’s SSN on Form 1040. *If your spouse doesn’t have and isn’t required to have an SSN or ITIN, enter “NRA.”*


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