HI
You have several options. The easiest would indeed be to not apply
for an ITIN and write NRA in the box, but it might not be the most
beneficial financially.
Filing a tax return with a
non-resident alien spouse
If a person is not a US citizen, permanent resident or resident
alien, they are considered a non-resident alien.
There are several reasons why someone is a non-resident alien.
Generally, a non-resident alien (NRA) cannot file a joint
return. That would mean that if you are married to a NRA, you would
need to file as married filing separately or HoH if you have a
qualifying child and meet the HoH requirements.
Filing married filing separately requires providing the SSN/ITIN
for your spouse. However, NRAs often do not have an ITIN/SSN. If they
are not required to get an ITIN (meaning they are not required to
file a US tax return), you can file without it and write “NRA” in
the field for the ITIN/SSN. Note however, that you wont be able to
e-file doing this.
If the NRA spouse has no US source income, the other spouse can
also take an exemption for the NRA spouse on a married filing
separately return. In order to do this, the NRA spouse needs to apply
for an ITIN if they don’t have an SSN/ITIN.
Another option is to file married filing jointly. Since an NRA can
not do that, both spouses need to sign a statement that they both
choose to treat the NRA spouse as a resident alien for the entire
year. This allows them to file jointly. The choice is valid for any
following year unless suspended or revoked.
Treating the NRA spouse as resident alien means that they are
required to report worldwide income. If they have foreign earned
income, they might be able to use the foreign earned income exclusion
on form 2555(if the meet either the bona fide residency or physical
presence test) and/or use the foreign paid tax credit on form 1116.
Filing jointly will also require the NRA spouse treated as
resident alien for tax purposes to have an SSN or ITIN.
For more info read here:
Publication 519:
http://www.irs.gov/uac/Publication-519,-U.S.-Tax-Guide-for-Aliens-1
http://www.irs.gov/Individuals/International-Taxpayers/U.S.-Citizens-and-Resident-Aliens-Abroad---No...
ITIN
To get an ITIN (Individual Tax
Identification Number) you will need to fill out form W7 and
attach it to the front of your tax return. You will also need to
submit additional documentation to prove your identity and status. A
passport is the only stand alone document, otherwise you need to
submit two documents (see instructions). You can submit original
documents, however, it is safer to submit copies. These copies
need to certified by the issuing agency.
Send your return, form W7 and the
supporting documents to the address in the instructions (see link
below).
You can also apply in person at an IRS
office handling ITIN applications (see link ITIN Acceptance Agents).
Turbotax does not support form W7, but
you can download it and fill it out manually (or using a pdf editor).
Form W7:
www.irs.gov/pub/irs-pdf/fw7.pdf
Instructions
for Form W7:
www.irs.gov/pub/irs-pdf/iw7.pdf
ITIN Acceptance Agents (US and
international)
http://www.irs.gov/Individuals/Acceptance-Agent-Program
To
apply for an ITIN from abroad:
http://www.irs.gov/Individuals/International-Taxpayers/Obtaining-an-ITIN-from-Abroad
Additional
publications of interest:
http://www.irs.gov/file_source/pub/irs-pdf/p1915.pdf
www.irs.gov/pub/irs-pdf/p
501
.pdf
www.i
rs.gov/pub/irs-pdf/p
515
.pdf
www.irs.gov/pub/irs-pdf/p
519
.pdf
