Rebate recovery credit

[tmike]

I have a client who has a valid SS# and his wife has an ITIN. Can I file separate returns and get the rebate recovery credit for him and the children? If I follow the worksheet there is nothing that would disallow the credt. When I try to e-file the return it is kicked out saying a valid SS# is required. Has anyone run into a situation where one spouse has a valid SS# and the other is using an ITIN? Any help would be appreciated. -Mike-

[RitaB]

I have a client who has a valid SS# and his wife has an ITIN. Can I file separate returns and get the rebate recovery credit for him and the children? If I follow the worksheet there is nothing that would disallow the credt. When I try to e-file the return it is kicked out saying a valid SS# is required. Has anyone run into a situation where one spouse has a valid SS# and the other is using an ITIN? Any help would be appreciated. -Mike-

I don't believe you can do the MFS unless both spouses have valid SSN's. Sorry, I am not at work, but look carefully at the RRC worksheet again.

[grandmabee]

how can you tell if it is an itin number?

[David1980]

Almost any number that starts with a 9. Technically the middle two numbers would need to be in the range of 70-88.

I don't think that's it though. Following the worksheet in IRS Form 1040 instructions, step 2 indicates only if filing a joint return does the spouse SSN matter.

2. "Does your tax return include a valid social security number for you and, if filing a joint return, your spouse?"

[tmike]

That is how I read it. "If filing a joint return". Pub 17 Page 256 says both spouses must have a valid SS# but makes no reference to filing a separate return. I talked to IRS but could not get a conclusive answer. I can't believe that this would not be a fairly common situation. -Mike-

[RitaB]

That is how I read it. "If filing a joint return". Pub 17 Page 256 says both spouses must have a valid SS# but makes no reference to filing a separate return. I talked to IRS but could not get a conclusive answer. I can't believe that this would not be a fairly common situation. -Mike-

Mike, I am at work now (yay), and I think your guy CAN get the RRC. I answered a question on the worksheet that I was supposed to skip. Looks like I have an amended return to do. My client will be happy!

UNLESS, the worksheet is wrong...

But it sounds like an ATX problem, similar to the message saying the clergy worksheets had not been approved for "filing" when they meant "if you're E-FILING, you need to mail the clergy worksheets with Form 8453."

Thanks for asking the question.

[tmike]

Mike, I am at work now (yay), and I think your guy CAN get the RRC. Make sure you didn't answer any questions on the worksheet that you were supposed to skip (which is what I did). Looks like I have an amended return to do.

Thanks for asking the question.

Thanks RCooper,

Am still having a problem deciding. Pub 17, page 256 seems to imply that both taxpayer and spouse need valid SS#'s. It does not address a separate return. Also I called the IRS and they could not give me an answer. It is now referred to their research dept. I can't believe this would be a fairly common situation. Let me know what you think. -Mike-

[RitaB]

Thanks RCooper,

Am still having a problem deciding. Pub 17, page 256 seems to imply that both taxpayer and spouse need valid SS#'s. It does not address a separate return. Also I called the IRS and they could not give me an answer. It is now referred to their research dept. I can't believe this would be a fairly common situation. Let me know what you think. -Mike-

Oh, boy, the "research department." Bet that means you'll have an answer before you retire.

Regarding Pub 17. Oy. I see what you mean. My clients don't have kids. The publication indicates that the client can't get the $300 per child unless BOTH spouses have valid SSN's doesn't it? They don't say "on a joint return." The kids can be illegal if at least one parent was in the Armed Forces. (Sorry, that wasn't politically correct, I know.)

After entering a fake child, I went through the worksheet for my client, and I didn't find anything to disallow the $300 for the child.

Oy. (Bet that's not PC, either.)

Guess I would try "The Code." Terrifies me.

[Eli]

Oh, boy, the "research department." Bet that means you'll have an answer before you retire.

Regarding Pub 17. Oy. I see what you mean. My clients don't have kids. The publication indicates that the client can't get the $300 per child unless BOTH spouses have valid SSN's doesn't it? They don't say "on a joint return." The kids can be illegal if at least one parent was in the Armed Forces. (Sorry, that wasn't politically correct, I know.)

After entering a fake child, I went through the worksheet for my client, and I didn't find anything to disallow the $300 for the child.

Oy. (Bet that's not PC, either.)

Guess I would try "The Code." Terrifies me.

IF, I remember correctly, both spouses were required to have valid SSN's in order to qualify for the RRC. I had several couples that did not meet the requirement last year and did not receive their stimulus payment.

Eli

[RitaB]

IF, I remember correctly, both spouses were required to have valid SSN's in order to qualify for the RRC. I had several couples that did not meet the requirement last year and did not receive their stimulus payment.

Eli

If that is the case, the worksheet is wrong. Good question, and good thread. Looks like I'll be doing some more research before I amend my client's return... Taxes rule. (Not)

Who was it that said "Sarcasm is a tool of the devil"? Was he on this forum? He was funny...

[tmike]

I just got a response from the research dept. and they say"A married taxpayer filing a separate return may be able to claim the credit even if the taxpayers spouse does not have a valid social security number". They then go on to say that I should refer to the rebate recovery worksheet for line 70 on page 62 of the instructions for form 1040. I still have my doubts but am going to paper file and see what happens. -Mike-

[RitaB]

I just got a response from the research dept. and they say"A married taxpayer filing a separate return may be able to claim the credit even if the taxpayers spouse does not have a valid social security number". They then go on to say that I should refer to the rebate recovery worksheet for line 70 on page 62 of the instructions for form 1040. I still have my doubts but am going to paper file and see what happens. -Mike-

I was wondering what you decided, cause the worksheet definitely gives RRC to my client when they file separately. Problem with amending my clients' return is that retirement savers credit gets adjusted to wipe out most of the RRC! There was some other goofy thing going on, and I got frustrated and put it aside. I'm not even sure amending will be helpful in their case. I will look at it again when I'm "fresh."

I think your return will go through just fine.

Thanks for keeping us posted. --- Rita