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1040-NR
Quote from BC on March 28, 2025, 12:43 pmThese questions require a little background:
We became nationals in the spring of 2023 & paid our taxes for that year. We have not done a ROE. My wife and I closed both of our companies, LLC and S -Corp as of Jan 1st 2024. We went back to being sole propriters getting paid directly. In 2024 we both closed and took our respective IRA's. While listening to Roger's show they were talking that Nationals could take thier IRA's with out penalty and taxes so we did.
I took my IRA but before I could tell them not to take out taxes, they paid the taxes. My wife's, we told them not to pay the taxes. It is our understanding that we would need to fill out a 1040NR to declare this and possibly get my money back.My wife gets a W2 from a side job she does for a couple of months in the spring, she also gets a 1099 from VRBO for a rental we own. I get a 1099 from the company I work for.
- Do we have to file anything with the IRS for this year?
- Do we have to file anything with the State of Montana?
- Our accountant (that is probably not up on the National stuff) is telling us we have to fill out a 1040-NR but that we are required to pay taxes on all of this for 2024?
Maybe there is an accountant out there or someone that has done this before that could help?
Bob
These questions require a little background:
We became nationals in the spring of 2023 & paid our taxes for that year. We have not done a ROE. My wife and I closed both of our companies, LLC and S -Corp as of Jan 1st 2024. We went back to being sole propriters getting paid directly. In 2024 we both closed and took our respective IRA's. While listening to Roger's show they were talking that Nationals could take thier IRA's with out penalty and taxes so we did.
My wife gets a W2 from a side job she does for a couple of months in the spring, she also gets a 1099 from VRBO for a rental we own. I get a 1099 from the company I work for.
- Do we have to file anything with the IRS for this year?
- Do we have to file anything with the State of Montana?
- Our accountant (that is probably not up on the National stuff) is telling us we have to fill out a 1040-NR but that we are required to pay taxes on all of this for 2024?
Maybe there is an accountant out there or someone that has done this before that could help?
Bob
Quote from David on March 29, 2025, 5:17 pmHello Bob. I understand your efforts, but if you've not yet revocated your election to pay taxes. Although you and your wife are nationals you must also let them know you're not paying taxes. You can't assume that by just submitting your affidavit and noticing the IRS you're a national (nonresident alien), that it also tells them you are revocating the election to pay. You'll be obligated to pay your taxes until you complete all the prerequisite steps.
Hello Bob. I understand your efforts, but if you've not yet revocated your election to pay taxes. Although you and your wife are nationals you must also let them know you're not paying taxes. You can't assume that by just submitting your affidavit and noticing the IRS you're a national (nonresident alien), that it also tells them you are revocating the election to pay. You'll be obligated to pay your taxes until you complete all the prerequisite steps.
Quote from BC on March 31, 2025, 4:28 pmThanks, David. My employer will not accept the W-8BEN or the W-V4. They will only send me a 1099. If that's the case, am I liable to pay taxes on this income each year even though I file the ROE? I ask this because we receive interest income from CD's and income from VRBO, and my understanding from what you said above, is that I don't have to pay taxes on this after filing the ROE. I guess I am asking if 1099 income is exempt from taxes after you file the ROE.
Also, it's my understanding that as a national (and we have filed the ROE) we are not obligated to pay state taxes and that it is voluntary. Is that correct?
Thanks, David. My employer will not accept the W-8BEN or the W-V4. They will only send me a 1099. If that's the case, am I liable to pay taxes on this income each year even though I file the ROE? I ask this because we receive interest income from CD's and income from VRBO, and my understanding from what you said above, is that I don't have to pay taxes on this after filing the ROE. I guess I am asking if 1099 income is exempt from taxes after you file the ROE.
Also, it's my understanding that as a national (and we have filed the ROE) we are not obligated to pay state taxes and that it is voluntary. Is that correct?