@mrhodes08 , having gone through your post and the responses of my colleagues @DoninGA and @TomD8 , (and generally agreeing with the responses) , what I get :
1. you and your spouse are both citizen of Japan
2. Under SOFA you are on assignment ( who pays for your services -- Japan or the US ) on US base -- a US territory for tax purposes ( which country/ base ?)
3. Your wife has her own earnings in Japan and is a resident of Japan ( family business).
In general ( and without refreshing my memory on US-Japan tax treaty which I need to do forthwith ), because (a) you are military and (b) your wife is living in Japan, she would not be eligible for ITIN ( her income is foreign sourced and her tax home is Japan ).
4. When did you enter the US ? US base on assignment ?
I am not familiar with the SOFA agreement ( with Japan military ), will have to hunt for that-- but my sense is that you are probably treated as an US personnel on duty. Generally though if Japan is paying your wages then you may have no US filing requirements. if US ia paying then you have to file US return.
Please any information you can provide on your deployment ( and or SOFA applicable to you) would be very helpful. Please help me on this.
I will circle back once I hear from you and/or when I have satisfied myself that I understand the situation and its nuances.
Look forward to hearing from you
pk
