Hi everyone, I’m looking for advice because I think our tax preparer may have really messed up for 2023. Hoping to get some clarity on whether we should fix it, how we can do that, and if it’s even worth the effort.
Here’s the background:
We moved to North Carolina in September 2023 from abroad for my husband’s job. He’s on an L1 visa (if that’s relevant), and I’m a U.S. citizen.
My husband earned about $18,000 in the U.S. for 2023 (mostly from a relocation package). He contributed $10,000 to a 401(k) and had $37,000 withheld as a single filer. The company set his W-4 to single, and he didn’t realize that wasn’t correct since he’s not familiar with the system.
Ernst & Young handled our taxes, and let’s just say it was a nightmare: constant delays, demands for documents we couldn’t easily access, and lots of last-minute stress.
When they finally filed, they submitted two separate returns, marking each of us as single. My husband got a $1,000 refund, and I owed $500.
I’m self-employed and earned about $20,000 in 1099 income, reduced to $12,000 after business expenses.
For 2024, I used a tax estimator, and it shows my husband could get a huge refund because his W-4 still said single (he’s changing it now). It got me wondering: should we fix the 2023 filing? Could filing jointly save us money? We’re trying to save for a house, so even a few thousand dollars would make a big difference to us.
Can we still fix this? Is it worth the trouble? And how would we even go about doing it? Thanks in advance for your help!
Do you have copies of the 2023 returns? When were they filed, and what forms were used? If your husband didn’t meet the substantial presence test, he would’ve had to file as a nonresident or dual-status alien. Filing as single doesn’t make sense.
You can amend the returns to file jointly if your husband elects to be treated as a resident alien for the entire year (using the 6013(g) election). This would make all his 2023 income taxable in the U.S., but some of it might be excluded under the foreign earned income exclusion.
For 2024, he should change his W-4 to married filing jointly and adjust withholding to account for your income. Use the IRS Tax Withholding Estimator when it’s updated at the end of the month to fine-tune this.
@Ripley
Yes, I have copies, and they were filed in late November 2024. Maybe the substantial presence issue is why they filed that way, but I agree, MFS should’ve been the minimum. Thanks for the advice—I’ll definitely look into the W-4 adjustment and the estimator. I really appreciate your thoughtful response!
@Raj
Just to clarify, MFS wouldn’t save you much compared to single—it’s pretty similar but with fewer deductions and credits. Filing jointly is probably your best shot at getting a refund, assuming there aren’t any major errors in how income was reported.
Yes, you should fix this because filing as single was incorrect. Filing jointly might save you money, but it depends on your situation. If your husband was a nonresident for part of the year, things get more complicated.
I’d recommend contacting the office that filed your taxes and asking them to fix their mistake. They should be able to help without charging you again.
@Thorne
It’s looking like the issue might be tied to his nonresident status for part of the year. Honestly, I’m hesitant to go back to them because the whole process was so stressful. Still, I might not have much choice.
You can fix it by filing an amended return (1040X), and you have up to three years to do so. I’d recommend working with a local tax professional—preferably someone experienced with international tax issues. It sounds like Ernst & Young might’ve rushed the filing without fully understanding your situation.
@Kim
I’ve already found a new accountant with experience in international taxes. I’ll ask them about amending the return and see what they recommend. Thanks for the reassurance!
Raj said: @Kim
I’ve already found a new accountant with experience in international taxes. I’ll ask them about amending the return and see what they recommend. Thanks for the reassurance!
Sounds like you’re on the right track. Hopefully, it all gets sorted out soon!