I don't have an ITIN for my spouse - should I file an extension and wait until I receive the ITIN before completing my taxes? Is that the best option?

[seven-lea]

I searched around, however, my case is a little bit different. My wife and I married last year, so I decided to file a joint tax return. But she does not have ssn/itin and she is not in US right now. She'll be back in May this year, which surpasses the April 15th. So I couldn't help her apply for an ITIN by then. From my limited knowledge of google, that there're 2 approaches:

1. File my own tax return first, then after she came back, apply for ITIN and amend my previous tax return.

2. Extend my current tax return, then wait for her come back and apply for ITIN & file tax return together.

Which one works for me? Appreciate your help!

[Opus 17]

Generally, you can't apply for an ITIN except by filing a tax return.  (There are a small number of limited exceptions.)

If you are a US taxpayer (citizen or resident alien) married to a non-resident alien you have two choices.

You can file as married filing separately. You do not list your spouse as a dependent.  Leave the spouse's SSN blank.  You will be prevented from e-filing.  Print your return, write "NRA" for the spouse's SSN, and mail in your return.  Married filing separately has higher tax rates and some deductions and credits are reduced or disallowed.

Or, you can elect to treat your spouse as a US resident for tax purposes.  This means you can file as married filing jointly, which has lower rates and better deductions. But it means you must report and pay US tax on your spouse's worldwide income (subject to a deduction for foreign taxes that they paid).  You still can't e-file, and you will have to use a fake SSN to get through the health care section (try 999-88-9999).  Then print the tax return, use some white out to blank the fake SSN and write "applied for".  Also download and print a form W-7 to apply for an ITIN (international tax ID number) for your spouse.  Mail the tax return and the W-7 to the address in the W-7 instructions, not the normal tax return mailing address.

Your spouse will need to sign the W-7 and provide some identity documentation so read the instructions carefully.  You will either need to use international courier services to move documents around, or you can file for the automatic extension request and then complete the tax return and W-7 application when your spouse is in the US in May. 

You may still need to use a fake ITIN to process the request for extension, and mail in the request instead of e-filing it.

More info here,

https://www.irs.gov/individuals/international-taxpayers/u-s-citizens-and-resident-aliens-abroad-nonr...

https://www.irs.gov/publications/p519/index.html

https://www.irs.gov/uac/about-form-w7

[seven-lea]

I see, thanks a lot for your information!

[sameerdarbha]

Hi

I have the same situation and my wife is outside of the US.

I am a PR and got married last year.

And I am applying for ITIN for my wife while filing our joint Tax Returns.

My Question is related to State Tax.

For Maryland State and County tax, how do I file Taxes if I don't receive the ITIN before Apr 15 ?

Do I have to file an extension for MD State / County Tax Filing ?

It looks like we can only do e-filing for MD ?

Do I have to send any document to MD State / County that we have applied for ITIN and waiting ?

Thanks

Sameer

Thanks

Sameer

[Vanessa A]

What is a PR?

Yes, you can file an extension for your Maryland state return while you wait for your wife's ITIN to be sent to you or you can mail your return.  MD will accept mailed income tax returns.  When you print your return, you will write NRA for your spouses SSN. 

"For returns filed without payments, mail your completed return to: Comptroller of Maryland Revenue Administration Division 110 Carroll Street Annapolis, MD 21411-0001 Preparer’s PTIN (Required by Law) 

For returns filed with payments, attach check or money order to Form PV. Make checks payable to Comptroller of Maryland. Do not attach Form PV or check/money order to Form 502.  

Place Form PV with attached check/money order on TOP of Form 502 and mail to: Comptroller of Maryland Payment Processing PO Box 8888 Annapolis, MD 21401-8888"  Form 502

[sameerdarbha]

Thanks, Vanessa

PR means Permanent Resident. (Legal Permanent Resident)

Do I have to file Extension, even if I am mailing paper copy to MD State with NRA for spouse SSN ?

Could not understand if these 2 are options or mandatory ?

I need to File Extension AND send Paper Filing to Comptroller ?

Or 

I can send paper filing without filing extension ?

If I send Paper filing, can I update spouse ITIN later without making an Amendment ?

Thanks

Sameer

[Vanessa A]

You can do either, or.  If you wanted to e-file, you would need to do the extension.  However, since you are mailing your return to the IRS, you would need to use MD state site to e-file your return after the extension as TurboTax requires that you e-file a federal return in order to file a state return even for the states that do not have that requirement.

It may be simpler for you to just print and mail your state return with NRA written on it, then you don't have to do anything else for 2023.

[sameerdarbha]

Yes, I am thinking to mail it.

After I get the ITIN, what is the process to update the ITIN in the Tax Returns ?

We don't have to do an amendment right ?

Thanks

Sameer

[Opus 17]

@sameerdarbha 

Have you read the entire discussion above your first post?  If you are a US taxpayer (citizen or resident alien) married to a non-resident alien you have two choices:

You can file as married filing separately. You do not list your spouse as a dependent.  Leave the spouse's SSN blank.  You will be prevented from e-filing.  Print your return, write "NRA" for the spouse's SSN, and mail in your return.  Married filing separately has higher tax rates and some deductions and credits are reduced or disallowed.

Or, you can elect to treat your spouse as a "US resident" for tax purposes.  This means you can file as married filing jointly, which has lower rates and better deductions. It also means you must report and pay US tax on your spouse's worldwide income (subject to a deduction for foreign taxes that they paid).

If you are filing as married filing separately,  you do not apply for an ITIN, and the IRS will not issue an ITIN for a non-resident alien unless they have a financial connection to the US.  That might mean they live in the US and work (with or without authorization), or they operate certain types of businesses or hold certain types of investments in the US.  If you file MFS, and your spouse doesn't have some other kind of tax connection to the US, she does not apply for an ITIN, and you don't do anything after you file. 

If you elect to file as married filing jointly, by treating your wife as a US person for tax purposes, you must file by mail and include a W-7 ITIN application.  Print the federal return only.  Mail the return and the application to the address for processing ITIN requests.  When the ITIN is issued, the IRS will process the tax return automatically.  When you get the ITIN letter, you can go back to Turbotax, update the spouse's number, and print and file the state return.  This is not an amended return, it is the first original state return you will file, because you won't file the state return with NRA, you will wait for the ITIN.  But again, this only applies if you file jointly.  If you file as MFS, just file your state and federal returns.  You don't amend anything when you get the ITIN. 

[AaronESR]

Thanks for the good info.

If filing jointly with a non resident spouse, when we are both considered US residents, does that also mean that we lose eligibility for the Foreign Earned Income exclusion (we both live overseas)?

[DaveF1006]

No, it shouldn't.

[pavankumarutd]

Hello,

Thanks much for the guidance on this topic so far. Could you give me your advice on my scenario. I’m a resident alien, been living in US for more than 10 years and currently in New Jersey. I got recently married and my wife is arriving in US next week from her home country. We chose to file as “married filing jointly” and already applied for her ITIN few days back through an authorized agent. I guess it’ll take around 2-3 months from now to get the ITIN. 

For federal return: can I enter my spouse ITIN in the tax return form as “applied for” and file (by mail) before the April 15th deadline? or should I file for extension first and wait to file the tax return only after getting my spouse ITIN?

How about for New Jersey state tax return? can I enter the ITIN as “applied for” in the tax return form and file before the deadline? or should I file for extension and wait until we get the ITIN.

Please advise, thank you!

[DMarkM1]

No.  File for an extension and wait for the ITIN.  Enter the ITIN information on the joint return and then file both federal and NJ state returns.