AJP1

OK, so I became a resident on November 24th last year. My income between then and the end of the year was nil - I was looking for a job. However, I read on the IRS web site that dual status aliens had to submit a tax return for their income for that part of the year when they were US residents. It didn't deal with the scenario that they had no income during that period and no US sourced income for the whole year. So, I submitted a 1040, writing DUAL STATUS ALIEN at the top, showing 0 income, and attached a nice letter explaining my position and why I was submitting it.

Today I received it all back, including my envelope, with a nice pre-printed pink sheet saying 'We are returning your claim for the Economic Stimulus Payment. We have identified a problem with your filing.' The check box notes the lack of dollar amounts on my tax return!

Now, of course, I'm not entitled to the Economic Stimulus Payment nor am I seeking to claim it! They did enclose a leaflet with a number for me to call, which I will do tomorrow, but I am wondering whether they'll be any more knowledgeable than the USCIS misinformation line?

So what do I do? Nothing - since I actually have no income to declare and do not wish to claim a stimulus payment? Or will that get all sorts of red flags against me since the IRS will now have me down as attempting to file, and then wonder why I didn't resubmit!?

rew1000

You're not the only person to have problems submitting a dual status return. We sent off our 1040 and 1040NR stapled together, only to get one sent back on its own with a letter saying it couldn't be processed because the other one was missing. I sent a copy along with a nice letter (omitting the word *****wit) and things progressed from there.

Two things that aren't clear from your message: did you include a 1040NR/1040NR-EZ marked "dual status statement", and did you send it to the particular office for dual status returns?

Someone will correct me if I'm wrong, but I'm under the impression that there's no obligation to file if you have no taxable income, so I imagine you could just leave it. [Or at least any penalty is a multiple of tax owed, which is zero]

fatbrit

There is no IRS obligation to file with no income. However, for the sake of your sanity with USCIS down the road, it best to file a null return if the IRS will take it. If they don't, just document the fact and put copies in your USCIS as well as IRS folder

Just send it all back again with a note of why you are doing it. And keep the documentation.

AJP1

I didn't file the 1040NR - it didn't make any sense to me. The IRS web site said that it could be used to submit a statement of earnings outside the US but the form itself is for US taxable earnings earned outside the US. I had no US taxable income for the year and therefore took the could at face value and included a statement of my non US income in my cover letter.

rew1000

You're right, it's optional. I was thinking that it would be one more thing that would say "This is not an ordinary tax return" - it sounds like they've just fished out your 1040, looked at the bottom line and pressed a button without reading anything else. I agree with Fatbrit - consider sending a letter, then just make sure you keep your records.