Accidentally Filed Single When Married to an Australian
Published on September 19, 2023
Updated on November 18, 2024
by Clark Stott
Table of Contents
What should I do if I’ve accidentally filed as single when I’m married to an Australian?
Your first step is to acknowledge the mistake and prepare an amended tax return. The IRS isn’t known for its leniency, but they do understand that errors occur.
The correct marital status is crucial for accurate tax calculations, access to benefits, and avoiding penalties. Incorrect status can lead to missed tax advantages, overpayments, or issues with the IRS and the Australian Taxation Office (ATO). Filing status errors can also affect your spouse’s tax return too.
Should I contact the IRS if I filed with the wrong status?
No, it’s not necessary. There’s no designated department as such, but you can call the IRS helpline for guidance (1-800-829-1040), but generally, you’ll be told to file an amended tax return.
Once you’ve filed the amended return, you can easily track the progress with the IRS’ “Where’s My Amended Return?” tool on their website.
How can I prepare to amend my tax return?
The IRS allows taxpayers who made mistakes to amend US federal returns using Form 1040-X. But you’ll also need to include any other forms that could impact your filing status.
Here are other documentation you may need to gather:
- Marriage certificate
- New tax return with the corrected “Married” status
- Notices from the IRS on any adjustments to that return
- Other relevant documents are needed to prove your marital status.
Why use the IRS Streamlined Tax Amnesty Program?
It’s for American citizens that didn’t know they had to file US tax returns each year, and have therefore fallen behind. Some more than 30 years! With the IRS Streamlined Procedure, say goodbye to overdue tax returns, late fees, and penalties.
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Can an amended tax return 1040-X be filed electronically (e-filed)?
Some IRS-authorized e-file tax preparation firms can e-file amended tax returns, such as Expat Tax Online.
How do I amend my tax return?
Here’s a step-by-step process for amending a tax return with the IRS:
- Obtain necessary documents: Collect all relevant documents listed above and download or request Form 1040-X.
- Fill out Form 1040-X: This includes your personal information as it appeared on your original return with the corrected marital status and an explanation of the mistake.
- Attach supporting documents: Include necessary documents that support your change, with your 1040-X.
- Submit the amended return: You can submit the forms electronically with tax filing software or mail your amended return to the IRS center that applies to you.
- Wait for processing: The process of an amended return typically takes 8 to 12 weeks. You can always check the status of your amended return on the IRS website.
- Monitor for any follow-up: The IRS may contact you for additional information or clarification. Be prepared to provide any requested documents promptly.
Will I face penalties for this mistake?
If you owe more tax based on your corrected marital status, you might face penalties and interest on the additional amount. Here are some penalties you can face:
- Underpaid tax: The IRS may charge a penalty of 20% of the underpaid tax if the mistake significantly reduces the amount of tax you owe.
- Interest on unpaid taxes: Interest charge on any unpaid taxes resulting from the incorrect filing. The interest rate varies and accrues daily from the date the taxes were due until they are paid in full.
- Late payment penalties: If you owe extra taxes and don’t pay by the due date, you could face a penalty of 0.5% of the unpaid amount each month, up to 25% of the total owed.
What are the consequences of not correcting the mistake?
Failing to correct your marital status on a tax return with the IRS can lead to several consequences:
- Incorrect tax liability: Filing with the wrong marital status can result in inaccurate tax calculations as married filing jointly has different tax rates than single status.
- Delays or denial of refunds: Any refund you are owed might be delayed or adjusted as the IRS can hold or deny your refund until the mistake is corrected.
- Impact on spouse’s return: If your spouse also files US tax return, your incorrect marital status can lead to discrepancies that may cause issues for both of you with the IRS.
- Loss of certain benefits: Filing under the wrong status could make you ineligible for certain credits and deductions, such as the Earned Income Tax Credit or Child Tax Credit, that are based on marital status.
How long do I have to correct my tax return?
The IRS allows you to amend your tax return within three years of filing your original return or within two years of paying the tax, whichever is later.
How does it impact my spouse’s tax obligations in Australia?
Your incorrect filing status in the US won’t change their Australian tax obligations. So, while you’re amending your US tax return, your spouse should continue to comply with Australian tax laws as they normally would.
It’s worth noting that Australia has its own tax laws and obligations that your spouse must adhere to, irrespective of your US tax situation.
Can I file separately if I’m married?
Yes, you can file separately while married. This is known as “Married Filing Separately” (MFS). However, it’s important to consider that this status might restrict certain benefits and eligibility for certain tax benefits and credits.
It’s often beneficial to compare the outcomes of filing jointly versus separately to determine which option is best for your situation.
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