Filing 2007 Tax Return Married--Jointly or Separately? HELP!

I am preparing to file my 2007 US Taxes.  I was married to a British Citizen in August 2007, but, have not changed my name in the states.  I also continued to be paid as a single person until I left my US employer on 3 November.  I was a resident of the states until year end. 

On my tax return (using TurboTax), I am listing myself as married filing separately.  DH does not have a SSN or a TIN number and has never resided in the US.  TurboTax is telling me that he needs to complete at 1040NR.  Does he really need to do this?  He has never resided in the USA.  Should I switch to filing jointly?  On one part of TurboTax it is asking me if I can claim an exemption for my DH.  I can check all the boxes:  He didn't earn any US income in 2007, he will not be filing a separate return, and he can't be claimed as a dependent on another return.  Would that work?  Would he then still need to file the 1040NR?

I don't think I can file electronically so, where do I send my return to?  Austin?  Or an embassy somewhere in London?  Can I have my refund directly deposited into my US account?

I would like to file jointly next year as I have a rental property in the states (started in 2008) and will need that deduction granted for rental properties (up to $25,000, I believe), but, I can't take that if I file married separately. 

Also, how does this affect my Massachusetts State Return?  Sorry for all of the questions, but, I am so very confused!

Even though you are filing seperately, they still need to know who your husband is (probably to make sure he's filing properly!), but you aren't filing for him.  They just want his name and SSN.

I filed using TurboTax last year and it was fine for me.  I put DH's name and NRA.

Great, Yael!  Did your DH do the 1040NR form?  Also, did you claim an exemption for him? Also, you had to mail your return in, correct?

Yeah, it's a bit confusing, because they tell you that you must get one of those ITIN numbers, but I don't think you can get even one if you try if your husband is not in the US or required to pay US taxes. At least that's what I've read in a couple of other threads by people who did try to obtain one. Just write in NRA (non-resident alien). I don't think you can file electronically if you do that (well, at least it wouldn't let me), so I just filled out the forms last year and mailed them in (to Austin, if I remember correctly). And I did married filing single.

Hopefully one of the professionals (or at least one of the more knowledgable non-professionals) will post. I'm definitely not a tax expert!

He doesn't fill out any form if you put NRA.

 I believe unless he has an ITIN you can't claim him.  But I am sure others will have more experience than me.  That is just what I understood from the Embassy FAQ.

Just a kindly note to remind that that if you worked in the UK in 2007 you can't file until you've met the physical presence test for the form 2555.

If you are a USC and your spouse has never been required to file with the IRS (i.e. doesn't have either SSN or ITIN), you file married filing seperately, claim the exemption for yourself only, and just put Non Resident Alien in the space for the spouse's name, the actual name is not needed.

I just did all this to get my wife's taxes up to date and asked the same questions of IRS at the US Embassy in London.

The London address to file to is on this page:

http://london.usembassy.gov/irs/irsfaq.htm

Dar,
I don't know how you'll do this, but to file your state taxes, MA now wants a proof of insurance because of these new laws. I got a letter from BCBS with a number to put in, but you get penalized if you can't demonstrate healthcare.

We have to find out what to do about DB because he is on travel insurance right now.

Form 1040-NR is for people who received income from the US that is taxable or conducted business in the US.

For MA, if you have health insurance via your travel insurance and/or thru NHS, that should be sufficient.  Write the name of the plan, the plan number, and the cost of the plan.  This will remove the penalty.

For MA, if you have health insurance via your travel insurance and/or thru NHS, that should be sufficient.  Write the name of the plan, the plan number, and the cost of the plan.  This will remove the penalty.

Thanks for that!

Guya, I didn't work int the UK at all in 2007.  Do I need to worry about the physical presence test?  I didn't start work until Jan. 2008.

Guya, I didn't work int the UK at all in 2007.  Do I need to worry about the physical presence test?  I didn't start work until Jan. 2008.

I'm totally not even close to being an expert on tax, but...I'm pretty sure the physical presence test is linked to the foreign earned income exclusion, so if you don't have any foreign income I don't think it would apply to you (for 2007, anyway!).

Ahhh, okay.  That is good for this year.

I don't think I can file electronically so, where do I send my return to?  Austin?  Or an embassy somewhere in London?  Can I have my refund directly deposited into my US account?

Yes, you can. I just did mine with TurboTax Online, and it was no different to last year. What's more, my refunds appear to be showing up in my accounts in less than 5 working days, if my online banking is to be believed. 

That should be very handy for covering the mortgage on our STILL unsold house in Baltimore. Just a bummer that I can't use it for the family trip back in April, like I had planned. Guess they'll have to wait till the summer.