ITIN tax return

[Getcorp]

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.

[Just-Lisa-Now-]

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

[Getcorp]

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

[itonewbie]

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]

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.

[itonewbie]

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

[Just-Lisa-Now-]

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

[Getcorp]

yes- so what is the answer

[itonewbie]

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@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.

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@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.

[itonewbie]

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.

[Just-Lisa-Now-]

@Getcorp   maybe this will help you decide

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

[Getcorp]

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 - ?

[itonewbie]

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.

[Getcorp]

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

[itonewbie]

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.

[Getcorp]

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.

[itonewbie · Accepted solution]

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.

[Carlos-Olivencia]

I use Proconnect. How can I use an ITIN to efile a return.

[itonewbie]

@Carlos-Olivencia You shouldn't have problems e-filing returns with ITIN.  Could you elaborate?

[Carlos-Olivencia]

I am using ProConnect. On the general client information the ITIN number cannot be entered. It will say invalid entry in red. Is there a data entry screen for the ITIN? IRS said returns with ITIN’s can be e-filed.

Soon I will start answering with revenue procedures numbers. People in general will trust more. co

[itonewbie]

Are you sure you have been given the correct series of numbers for ITIN?  PTO checks that then number entered matches the standard convention and shows "invalid value" if it doesn't conform.