Markoncarp

Hi Everyone.

After finally thinking I'd found an accountant with some knowledge of taxes for ex-pats (on a recommendation) It turns out, I have only managed to track down someone who is really good at SAYING he has knowledge of taxes for ex-pats

So I need some advice, before I file my return next week.

When I filled out my W-4, I followed the advice of the document (that's kind of what anyone would do right?) and I now know that was the wrong thing to do. It means that my company havent been witholding the right amount of tax and I've been underpaying.

The issue I have with my accountant is that he doesn't have a clue about whether I can claim an exemption for my two children? He seems convinced that we cant claim an exemption because they don't have SSN's - I have told him that I can get them ITINs. I've said that the reason we can or cannot claim an exemption wont be down to whether they have SSN's or not, but whether, as a non-resident alien (I'm on an L-1 visa) I'm allowed to claim or not.

I spent an hour holding on the IRS helpline today, only to be passed all around people who don't have a clue.

Any help you guys can give?


If you are reading this and considering moving to the US, let me be quite clear - INSIST on your first and last years tax return costs being included in your relocation package - because this is a nightmare!

Michael

I'm not a CPA but you don't need a social security number to claim dependents but can file for ITINs. I think the confusion is that dependents normally can't be claimed if they don't reside in the US.

The W-4 is a living document to estimate taxes that would be owed. Since it is based on your current financial situation, based on annual income, based on deductions and credits, and your financial situation can change during the year, it may have to be updated one or more times during the year. Once you get through the first year's nightmare, it can be fine tuned as you purchase a home or other things that max effect the taxes owed. Filing as a non resident alien also effects the W-4 since certain deductions and credits are not allowed and the 1040NR prorates.

Bob

Hope this wasn't the chap that I passed on?

Markoncarp

No. It was the guy I mentioned in my PM.

Bob

I can't help, but glad I didn't duff you up with a dodgy recommendation. Good luck!

MsElui

We claimed for the kids when we were on L1s. Had to get itins by filing the form the same time as the taxe forms went in and that took several months to sort out but it did go through. Hassles was more with accountants ability to follow form instructions than any issue with status.