Getting An Itin For Your Filipina Wife

[MikeB]

 

If you have assets in the US and your spouse is a non-resident alien they will need a US tax identification number to claim the assets if listed as beneficiary; either a SSN or ITIN. That will greatly delay any distributions - https://www.irs.gov/Individuals/International-Taxpayers/Frequently-Asked-Questions-About-International-Individual-Tax-Matters

(about 3/4 of the way down)

I got mine an ITIN about 3 years ago I think.

 

This statement and this other topic:

 

http://www.philippines-expats.com/topic/24558-a-seldom-discussed-conjugal-topic/

 

really got me thinking about how to protect my assets from those who don't deserve them, including the IRS.  I think I read before that an overseas alien spouse would have to U.S. pay taxes on any assets she gets from your estate.  If true, double taxation at it's worst.  If I can dig up some facts, it would be worth a new topic.

 

If the money is sent out of the country there are additional taxes. I don't have specifics but I have heard and read that from many sources. One of many reasons I plan to go back later this year.

[Mike S]

If the money is sent out of the country there are additional taxes. I don't have specifics but I have heard and read that from many sources. One of many reasons I plan to go back later this year.

 

Not sure I'm on the same wave level with you Mike but when I liquidated my 401k I got creative and sent $8,000 per month over until I had it all removed .... never had a problem with additional taxes except those taken out by the IRS as income .... if you get real creative you can send some over in Dec. and some in Jan. and only have to file income tax on each year separately .... course it takes several years doing it this way .... as long as you don't need it all immediately .... JMHO

:cheersty: 

[MikeB]

Well, it appears it's only an issue if the amount of the estate is over $5.45 million (in 2016). Anything under that is not subject to federal estate tax. That's the way I read it.

http://www.nolo.com/legal-encyclopedia/estate-planning-when-you-re-married-noncitizen.html

[Mike S]

Well, it appears it's only an issue if the amount of the estate is over $5.45 million (in 2016). Anything under that is not subject to federal estate tax. That's the way I read it.

http://www.nolo.com/legal-encyclopedia/estate-planning-when-you-re-married-noncitizen.html

 

Phewwwwwww ..... well I will just squeak by as my estate is valued at $5.40 million ..... oh wait you said million .... and not $5.40 .... oh well just a few 0's off ..... :hystery: :hystery:

:cheersty:

[OnMyWay]

On 1/31/2016 at 8:20 AM, Mike S said:

 

OMY if the girl you refer to is Leony Arceo she is the secretary to the guy that is the actual agent she has been with him for many many years and as he is in his seventies (I believe) she handles everything .... we did ours years ago and just sent them J's passport and other info by LBC which the promptly sent back .... however we did not use it again after the first 2 years so it may have expired by now ..... I was not aware of the 5 year rule .... 

Mike, hope you are doing well!  We met with Leony today and she helped us with the ITIN process, which I will describe later.

 

Edited September 1, 2016 by OnMyWay

[OnMyWay]

Here is an update on the ITIN post below.  I finally got my 2015 taxes done and we visited the RAO in Angeles to file for the ITIN.  See red updates below.

On 1/30/2016 at 6:11 PM, OnMyWay said:

This is not about social security but about getting a U.S. ITIN (individual taxpayer ID number) for your wife. You need the ITIN if you want to claim her on your U.S. income tax return.   I was not sure where to put it so I am dumping it here.  If a mod thinks it fits better somewhere else, please move it.  

 

Note:  The rules I state here have some exceptions for military, so dig into it if you need to.

The IRS rules for military, and maybe ex-military, are easier, so make sure you check the IRS website.

 

https://www.irs.gov/Individuals/Individual-Taxpayer-Identification-Number-ITIN

 

Apparently they changed the rules a year or two ago, and now the applicant (my wife) has to send in the ORIGINAL IDs to the IRS and they return them.  The exception is if you go to to an IRS acceptance agent, where they verify the ID and you don't have to send it in.  I really did not want my wife's passport or other ID floating around in the mail system, so I looked into the agents.  There are 3 acceptance agents in the Philippines.

Another "exception" that has been discussed is to use the Philippines Red Ribbon service to make an officially validated copy of your ID(s).  You can send these with your tax return instead of the originals.

 

https://www.irs.gov/Individuals/Acceptance-Agents---Philippines

 

Yesterday, we visited the agent in Angeles, which is at the RAO (Retiree Activities Office).  Kind of a hole in the wall that we had a hard time finding (not really that hard, let me know if you need some advice for finding it) but they have some nice folks there.  This is their web site.  Click on the newsletter links in the middle of the page for a lot of great expat information.

 

http://www2.mozcom.com/~rao_cabr/

The contact number for ITINs at the Angeles RAO is 045 888 2748.  It is buried in the link above.  The best time to find Leony there is 1 pm but you can try between 12 and 3 pm.

Quote

The Filipina we spoke to (Leony) must have been the agent and she knows all about getting the ITIN.  She is there from 1200-1330 everyday.  She verified what I had read (but didn't believe) and explained the process we would use to get the ITIN through them.  Here are the steps we will use to get the ITIN this first time.

Leony is not the agent but she does all the ITIN work.  Jim Boyd is the agent and he will check and sign the W7.

 

1.  Prepare the tax return the ITIN will be used for, in this case my return.  Leave the ITIN blank.  In my case my CPA in the U.S. will do it and e-mail it to me.

2.  Print out the return, sign it, etc.  You can't file electronically the first time you get the ITIN.

3.  Fill out the W7 ITIN request and attach it to the return.

You can fill out the W7 but Leony has a special one she will type up.  It is still handy to have one filled out with the W7 applicant's info so she can copy it.

4.  Bring all of this to the agent along with the IDs to be used (read the rules on IDs).

Call Leony about other ID's if you are not going to use the a passport.  The IRS lists several possible IDs but the Angeles RAO will only accept 3 (sorry, I didn't write them down) and you have to have 2 of the 3.  It is best to use a passport.

Also, the W7 has a spot for visa information if the applicant has a U.S. visa, so bring the visa.  In our case, my wife's visa is in her old passport so she had to bring both new and old.

Bring 2 copies of the the passport and 2 copies of the visa, if applicable.

5.  The agent will verify everything and return all the IDs to you.

Leony asked me to make copies of 3 other papers as well, which can be done in the adjacent military post office.  The post office closes early, around 1330, , so I am not sure what she would have done if they were closed.

6,  This part might vary by agent.  The RAO has special USPS (military mail) service.  They will mail the return and W7 for you, bypassing the Philippine postal service.  Bring a blank envelope for your tax return.  You probably have to pay for the stamps.  (She usually charges 200 pesos for postage.  My return was thick and heavy, so she charged me 500 pesos.  If the post office would have been open, she probably could have made an accurate estimate).  Note that the IRS address is not the normal filing address when you are getting an ITIN.

7.  The IRS will process the W7 and assuming that the ITIN is granted, put it on the return.  The return then gets normal processing, normal direct deposit of refund, etc.

8.  A copy of the ITIN number confirmation letter is sent to the agent and the taxpayer.  The agent will probably get it long before I do, due to their special mail.

 

After the first time, you have the ITIN and you can go back to filing electronically.  If you don't use it for 5 years, it will expire and you have to get a new one.

There is a 1500 peso fee for using the agent, so with that and the postage, I paid p2000.  I don't mind this as the RAO needs support and if there were no fees, I would have made a donation. 

 

Hope this helps someone!