I am married and working in US as H1B, and my spouse resides in India. She possesses an SSN but doesn't earn taxable income there. Can I file taxes in the US as single or married filing jointly? If I choose married filing jointly, are there any tax benefits? Please advise.
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Have you met the Substantial Presence Test or are you claiming the First Year Choice? If so, then the below information applies to you. If not, then you would need to file a form 1040 NR. TurboTax does not handle the 1040 NR, but Sprintax.com does.
If you are married, your only filing options are Married Filing Jointly or Married Filing Separately when filing a form 1040. In both situations, your spouses SSN or ITIN must be included on the return in order to e-file.
If they do not have an SSN or ITIN and you choose to file Married Filing Separate ,you can try typing NRA in as your spouses last name. Make sure you put a check mark in the box that says My spouse is a Non-Resident alien in the My info section. When you get to the end and try to transmit the return, ignore the e-file errors regarding your NRA spouse and select transmit your return. If that does not work you will need to print and mail your return and write NRA (Non Resident Alien) in the space for her SSN.
If you file as Married Filing Separate, then you would only include your income.
If your spouse chooses to be treated as an US Citizen for tax purposes, and you want to file as Married Filing Joint, you would need to include their income on your return as well and they would be taxed on it. If you choose filing jointly, you will need to print and mail your return along with the W-7 and any other required documents to
IRS
ITIN Operation
P.O. Box 149342
Austin, TX 78714-9342
If you file a joint return, the primary benefit since your spouse is not in this country, would be that you would have a $27,700 standard deduction as opposed to a $13,850 standard deduction if you file separately.
Thank you for your prompt reply. I have met the substantial test, and my wife possesses an SSN. Additionally, she holds an EAD work authorization but has never worked in the US and has returned to India.
With this information in mind, please advise on my filing status.
Yes, you may file a joint 1040 Resident return with your wife since she has a SSN. You and she would need to report your worldwide income. If she pays an income tax on her income in India, you may claim a foreign tax credit for that taxed to avoid double-taxation between the two countries. This is listed in Article 25 of the US/India Tax treaty.
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