NY State Filing Options When Spouse ITIN Is Pending (MFJ vs MFS)

[Irfan001]

Hi, I’m filing my federal return as Married Filing Jointly and mailing it with Form W-7 (ITIN application) for my spouse.

For New York State, my spouse (a non-resident alien) has no NY income and does not yet have an ITIN.

Should I:

1. File NY return as Married Filing Jointly with the spouse's SSN/ITIN marked as “Applied”, print the return, attach W-7, and mail it to the State, or

2. File NY Married Filing Separately using only my SSN?

I want to avoid NY rejection or delays. Please confirm the correct option that TurboTax supports in this situation.

Thank you.

[MaryK4]

Either way you will have to mail your tax return in, because even with a separate return, you are required to provide your spouse tax number so you will not be able to efile.  

You will most likely be able to pay less New York tax (and hence get a bigger refund) if you file joint but the state most likely will hold the refund until you get the actual ITIN from the IRS.  If you file separate, you can get your refund faster because they will not hold the refund with the applied for tax number.  (And you could file an amended return later once you have the ITIN if you decide to).

[Irfan001]

If I file NY return jointly, I’ll need to supply my wife’s ITIN once it’s issued. In that case, should I file an extension, and then e-file my state return after an ITIN is issued? Otherwise, if I mail my joint NY return now, will they send me a notice to send them the ITIN or will I have to call them and supply the ITIN? I would like to file my state return jointly, and am confused which path I should take!

[DianeW777]

Since you must mail the federal return you should mail them at the same time. They should both be completed the same time so there's no reason for an extension for your New York (NY) return. 

@Irfan001 

[Irfan001]

But NY won’t accept my return without my spouse’s SSN/ITIN, and I won’t have the ITIN until they issue one. If I want to mail together, I need to file federal as MFJ and file NY return as MFS (and write “Applied for ITIN” on spouse’s SSN field). Is that acceptable?

[DaveF1006]

Yes, if you file a joint federal return but one spouse lives in New York, and the other doesn’t (and has no New York income), New York requires you to file separate state returns unless you both choose to be treated as residents. This follows NY Tax Law and the IT-201/203 instructions. You can make sure of this in the following link. Select this and this will take you directly to the section that mentions this. Meanwhile, here are some things you should know.

You will mail your Form 1040 along with your spouse's Form W-7 (and original identity documents) to the IRS. Leave the spouse's SSN/ITIN field blank (or write "Applied For") on the 1040. You will need to mail this return.

For New York State, File MFS. Since you are the only one with a valid SSN and the only one with NY income, you will file as "Married Filing Separate." You still have to list your spouse's name on the NY return, but you can write "Applied for ITIN" in their ID field. Since you won't have an ITIN, you must paper-mail the NY return.

[Irfan001]

What if I choose to file the NY return as Married Filing Jointly (as this gives me ~650+ more refund)? Can I still mail the NY state return to the NY Department of Taxation and Finance and attach the W-7? Once I get the ITIN, I can let them know, and they can process my return.

[DaveF1006]

In most cases, New York uses the same filing status as your federal return. If you file jointly for federal taxes to get the ITIN, you’ll usually need to file jointly for New York as well.

However, there is a catch: If one spouse is a New York resident and the other is not, you must file separate state taxes (MFS). New York will not treat you as residents for tax purposes unless you both choose to be treated as residents.

1. If your spouse has NO NY income: You likely must file MFS for the state, even if you are MFJ for Federal.
2. If you both want to file MFJ in NY: You must both agree to be taxed by New York on your combined worldwide income. While this gives you the higher joint standard deduction, it could potentially result in more tax if your spouse has significant income from Canada or elsewhere.

If you proceed with the MFJ filing for New York while the ITIN is pending.

1. Wait for Federal first? Ideally, you would wait until the IRS assigns the ITIN (usually 7–11 weeks) and then file the NY return.
2. If you must mail NY now, you should leave the spouse's SSN/ITIN box blank or write "Applied for ITIN" in that space.
3. To provide a paper trail to NYS, attach a copy of the Federal Form W-7 (and a copy of the federal return) to the back of your NY return. This proves to NY why the ID number is missing.

[Irfan001]

I just had a Tax Pro from H&R Block complete my federal and state return. She told me to mail the federal return, state return, W-7, and supporting documents to the IRS. Once, ITIN is processed, the federal and state returns will be forwarded to IRS and NY Department of Taxation, respectively. Is this information correct? Additionally, if I file NY return as MFS, will they process my return without my spouse’s ITIN?

[DaveF1006]

The information provided by your H&R Block Tax Pro is partially incorrect and could lead to significant delays or a rejection of your New York state return.

While she is correct about the federal process, her advice regarding the New York (NY) state return is misleading. The IRS and state tax departments do not "talk" to each other in the way she described​ it.

1. Is the information correct

1. Federal (Correct): You must mail your federal Form 1040, Form W-7, and your original supporting documents (like a passport) to the IRS ITIN Operation in Austin, TX. The IRS will process your ITIN first, then they will process your federal return.
2. State (Incorrect): The IRS will not forward your state return to the New York Department of Taxation. The IRS only handles federal taxes. If you mail your NY return to the IRS, it will likely be discarded or sit in a folder indefinitely.

2. How to handle the NY Return (Correct Process)

You have two main options for your New York return while waiting for an ITIN:

1. Option A: Wait for the ITIN (Recommended). Most professionals recommend mailing the Federal W-7/1040 package now, but holding onto the NY return. Once you receive your ITIN assignment letter from the IRS (usually in 7–11 weeks), you write that number onto your NY return and mail it to the NY Department of Taxation at that time. This ensures your state return is processed correctly on the first try.
2. Option B: Mail to NY now with "Applied For." If you must mail it now, you mail it directly to the NY Department of Taxation (not the IRS). In the spouse’s SSN box, you write "Applied For." You should attach a copy of your federal Form W-7 to the NY return as an explanation. NY will likely put your return on hold until they can verify the ITIN, which can delay your refund.

3. Filing NY as "Married Filing Separately" (MFS)

If you choose to file as Married Filing Separately for New York.

1. Will they process it without an ITIN? Yes. If you file MFS, you are the only taxpayer on that specific return. You would enter your SSN/ITIN, and in the spouse's information section, you enter their name and write "NRA" (Non-Resident Alien) or "Applied For" in the SSN box. 
2. The Benefit: Your return will be processed much faster because the state doesn't need to verify a second taxpayer's identity to issue your portion of the refund.
3. The Catch: You lose the higher joint standard deduction. However, you can file MFS now to get your money quickly. You can change the return to Married Filing Jointly later when the ITIN arrives to claim the rest of the $650.

[Irfan001]

Thank you so much for such a detailed explanation. I think I am going to wait for the ITIN and then mail the NY state return. One last question: I am a full-year NY resident and my spouse (who is a foreign citizen - F1 visa) lived in NY State for 146 days last year. Should I file IT-201 or IT-203 when electing to file jointly?

[AmyC]

The IT- 201 is for MFJ but let's compare:

IT-201 

• You can file MFS while your spouse files IT203 MFS
• MFJ deduction, you both file as though full year, all worldwide income is included, higher standard deduction, potentially lower tax bracket

IT-203 -spouse as MFS, may lose some credits or deductions but do not have to pay tax on income outside of NY.

You will need to compare income tax and credits/deductions to see which is best for you.