Can I file as married filing jointly? F1 student just turned resident for tax purposes (4+ years in USA), while my wife has been here only for 2.5 years.

[htennek2k]

Hi, I need some advise and support, since this didn't happen last year, and I had no idea this year would be totally different.

I'm a foreign PhD student under F1 visa in Illinois. Last year I used Sprintax service, which is provided by my school for a subsidized fee to file taxes. I already used it for filling 2017 and 2016 years with no problem whatsoever.

This year however, Sprintax reported to me that I no longer qualify as a non-resident alien since I have already passed the test of presence SPT. Sprintax suggested me to come and use TurboTax, which I plan to use in the Deluxe version or whatever is necessary to go over this.

Some background: I got my masters in USA from Fall2009-Spring2011 under J1 visa. Then, I returned to my home country for five years (and got married there). I returned to USA with my wife for my PhD, which started in the Fall semester of 2016. We both arrived together. She is under F2 visa.

We both have campus health insurance: I have it as an F1 student, and she is added to my plan as my F2 dependent. We have no children.

Since this year I will use TurboTax (as suggested by Sprintax), I wanna know how to do it, since the following facts bring me lots of doubts:

1. I am an F1 student, who already qualified as resident for tax purposes, since already passed the test of presence STP for being in the USA for few years (about two years under J1 for my master) and 2.5 years (currently) under F1 visa for my PhD.

2. My wife has been here only for 2.5 years: since the beginning of my PhD in 2016. She has no income at all because she doesn't work, she has F2 visa.

3. I have an SSN. My wife has no SSN neither ITIN.

4. For the last two years, I mailed my tax return along with an 8843 form in an envelope through USPS.

5. I mailed an 8843 form for my wife as well (separately), as it was automatically generated by Sprintax, and because I was told to do so.

6. For this year, I have the following forms at hand:

W2 - wages reported from my university regarding my earnings as a research assistant.

1095B - Forms reporting health insurance coverage for me and my wife.

1098-T reporting tuition paid and tuition waived by school.

My questions for which I need some help and support:

a) Should I file jointly or separately? and how to do for whatever case I fall into.

b) If filing jointly, what to write in my wife's SSN/ITIN? - Can we apply for an ITIN for my wife along with the file return? Please need help and instructions.

I see there seems to be a huge difference if filing jointly or separated. What do I have to do for my wife? Mail the 8843 form again? I'm so confused!

I would appreciate all your help. I know we are close to the due date, but I was not aware of this radical change. Last years It took me only 1 hour to do it.

thanks in advance!

[dweelea]

First, it will be better to file jointly, since you will get a larger standard deduction (as you've already noticed, it does make a difference in the amount you owe, or are getting back).

Yes, you can apply for an ITIN for your wife when you send in your return. You cannot e-file when you do this, because the ITIN application must be accompanied by documents proving her identity.  The easiest thing to do is to use her passport, assuming she has one.  However - you would need to include either her original passport (which I would not recommend sending through the mail), or a certified copy (which you can get through an embassy or consulate).  Alternately, you can apply for the ITIN in person using an IRS-authorized CAA (Certifying Acceptance Agent).  The IRS website has a list of CAAs by state.

Yes, you still need to file form 8843 for your wife.

[htennek2k]

Thanks for your reply. So Much appreciated.

So, what is the case if we decide to file separately? Can we? (Regardless of the difference in the tax return amount)

Would that be fine if I just select, filing separately in turbo tax , and we only mail the 8844 form for my wife??  Or, is it the case we must apply for her itin? And file jointly? (Since after googling around, if that is the case, it seems we may need to go to see a tax service office to do so)

[dweelea]

You can decide to file separately - however, even if you file separately it will ask for a SSN or ITIN for your spouse. You would not be able to e-file without one.  So you're back to - your best course of action is to file on paper, with an ITIN application for your wife.  She'll need one next year anyway.

[dweelea]

You could also search for a local CAA (Certified Acceptance Agent) who could verify your wife's paperwork so you didn't have to send the passport in with the application.  In Colorado, at least, several of the local tax preparation chains can do that (for a fee, I'm not sure how much they charge).

[htennek2k]

I see thanks for your support. I already found a CAA place I could go to, which is near by. I'm in Chicago. So, they will process the ITIN application only or the whole filing thing?

[dweelea]

I'm not sure on that.  I'm pretty sure that a return with an ITIN application needs to be mailed to a specific address, and cannot be e-file. The CAA will verify the authenticity of the paperwork, and should tell you where to mail the return, the ITIN application, and whatever paperwork they provide that certifies the documentation you provided.