can dual-status alien elect non-resident spouse as resident alien?

[oblivious_chams]

Hi,

I am in a situation where my status seems to be dual-status alien and my spouse's non-resident alien(never been to US).

Let me explain a little more.

1. I came in the US in March'2020 on L1 Visa and at the last day of Tax Year 2020, I am a resident alien. 

2. I was married but my spouse couldn't join me here in throughout the whole 2020 so she is a non-resident alien.

3. So If I consider myself resident alien at the end of the year and since I am married, Can I elect my non-resident spouse as resident alien and file married filing jointly along with W7/ITIN application for my spouse?

is my interpretation of the below Para from PUB 519 correct?

From PUB 519, there seems to be an example where its talking about similar situation.

Nonresident Spouse Treated as a Resident
If, at the end of your tax year, you are married and one spouse is a U.S. citizen or a resident alien and the other spouse is a nonresident alien, you can choose to treat the nonresident spouse as a U.S. resident. This includes situations in which one spouse is a nonresident alien at the beginning of the tax year, but a resident alien at the end of the year, and the other spouse is a nonresident alien at the end of the year.
If you make this choice, you and your spouse are treated for income tax purposes as residents for your entire tax year. Neither you nor your spouse can claim under any tax treaty not to be a U.S. resident. You are both taxed on worldwide income. You must file a joint income tax return for the year you make the choice, but
you and your spouse can file joint or separate returns in later years. If you file a joint return under this provision, the special instructions and restrictions for dual-status taxpayers in chapter 6 do not apply to you.

There are some answers for similar questions, just wanted to be sure, which specific lines in Pub 519 explain this situation.

Thanks. Looking forward for some experts comments.

@KarenJ2 @LinaJ2020 @SusanY1

[LinaJ2020 · Accepted solution]

1.  Yes, you are considered as a dual -status alien.  You will file a Form 1040 NR from January 1st till March and a Form 1040 report worldwide income including those from US and overseas from April till December 2020.  If you have no US income before entering the US, you can simply download Form 1040NR from the IRS.  Click here: https://www.irs.gov/forms-pubs/about-form-1040-nr

You can then use TurboTax to file the Form 1040.  However, you will need to paper file both of your forms to the IRS instead of e-filing.  

Per IRS, Resident Alien at End of Year

You must file Form 1040, U.S. Individual Income Tax Return, if you are a dual-status taxpayer who becomes a resident during the year and who is a U.S. resident on the last day of the tax year. Write "Dual-Status Return" across the top of the return. Attach a statement to your return to show the income for the part of the year you are a nonresident. You can use Form 1040NR, U.S. Nonresident Alien Income Tax Return or Form 1040NR-EZ, U.S. Income Tax Return for Certain Nonresident Aliens With No Dependents as the statement, but be sure to write "Dual-Status Statement" across the top.

For more information, click here: Dual Status

2.  As you are a resident at the end of the year, you can make an election to claim your nonresident spouse as a resident and file Married Filing Jointly.  TurboTax does not provide any tools or forms to assist you to make the election, unfortunately.  You would need to follow IRS's instructions to attach the statement to your 2020 tax return.  You cannot e-file.  Instead, print out all your tax forms along with the statement and paper-file.  Click here to see Nonresident to resident

3.  If your spouse does not have either an SSN or ITIN, you would need to apply for an ITIN for him / her. To do so, you must file a Form W-7 along with filing your tax return.  Without an SSN or ITIN, you won't be able to e-file.

To prepare your tax return in the program, here are the steps: 

• In the program, as you enter the information, leave the SSN space blank
• After entering all your information, print out returns and required forms ( write APPLIED in the spouse 's space) 
• As TurboTax does not support the Form W-7, fill out the forms by following
•  https://www.irs.gov/Individuals/General-ITIN-Information and attach to other required  documentation
• Submit both the Form W-7 and your tax forms to IRS Austin location in Texas.  ( see Form W-7 instructions)

[oblivious_chams]

Thanks @LinaJ2020 . Appreciate prompt and precise answer.

[oblivious_chams]

Adding further, so If I understood correctly, Since I elect non-resident spouse to be treated as resident alien, and filing "Married Filing Jointly", I no longer need to file as "Dual-Status" alien, Instead we can file 1040 as Residents for whole year on our worlwide income and get standard deduction, tax credits if paid any on foreign income. 

PUB-519 Says:

Page 32 Chapter 6

If you are married and choose to be a nonresident spouse treated as a resident, as explained in chapter 1, the rules of this chapter do not apply to you for that year.

Page 10 Chapter 1

If you make this choice, you and your spouse are treated for income tax purposes as residents for your entire tax year. Neither you nor your spouse can claim under any tax treaty not to be a U.S. resident. You are both taxed on worldwide income. You must file a joint income tax return for the year you make the choice, but you and your spouse can file joint or separate returns in later yearsIf you file a joint return under this provision, the special instructions and restrictions for dual-status taxpayers in chapter 6 do not apply to you.

Am I understanding it correct? Thanks.

@LinaJ2020 @KarenR @SusanY1 

[LinaJ2020]

That is correct.  

Per IRS,

If, at the end of your tax year, you are married and one spouse is a U.S. citizen or resident alien and the other is a nonresident alien, you can choose to treat the nonresident as a U.S. resident. This includes situations in which one of you is a nonresident alien at the beginning of the tax year, but a resident alien at the end of the year, and the other is a nonresident alien at the end of the year.  For more information, click here: Nonresident to resident

@oblivious_chams