Questions around filing a joint (resident+non-resident) return, waiting for SSN for my wife, applying for extension, ...

[navneetk]

Hi,

I'm looking to understand my options for filing taxes. I want to do a joint return with my wife (we got married in 2022), and while I qualify as a US tax resident alien, she does not. It is my understanding that I can elect to have her treated as a tax resident. To do this, we have to provide a declaration. Does this mean we have to file our taxes by mail (and that, we can't file taxes online?)

An additional complexity in our case is while my wife has employment authorization, she does not have a social security number yet. We expect to be able to request one later in March, when she arrives in the US. Since the tax deadline is April 18th, I'm not too confident that the SSN will arrive in time to file taxes. Can we apply an ITIN for her in this instance? (IRS guidelines seem to imply that only someone who is ineligible for a SSN may apply for an ITIN).

If we can't apply for an ITIN, can we still file our taxes without her SSN? Since we're kind of waiting for an SSN?

Or should I apply for an extension? (per TurboTax, I should expect a refund if I file jointly, but owe taxes if I file separately). How does filing an extension work if I will be doing a joint tax return? How do we both get the extension? (since I don't have an SSN\ITIN for my wife, which looks like something that has to be filled in on the extension request)

Thanks,

Navneet

[Opus 17]

If your wife is or will be eligible for an SSN, you should wait to file your tax return until after she receives it.  You can apply for an extension of the tax deadline to October 15. 

Be aware that while filing jointly and electing to treat your wife as a US person, you must report and pay tax on all her world-wide income, even income earned outside the US.  (She may qualify for a deduction or credit if she pays tax on the same income in another country.) Although filing jointly usually results in less tax than filing separately, that is not always the case when your spouse is a non-resident alien.

If you want to file separately (married filing separately), you can do that now.  You would need to use a fake SSN for your wife to get Turbotax to finalize your return, then print the return, use some white-out to cover the fake SSN and write "NRA" (non-resident alien) and file by mail.  You could later file an amended return to change from MFS to MFJ and add your spouse with their SSN (and any income that needs to be added per the rules above.)  You have 3 years to file an amended return.

The one thing I would not do is file a joint return now and apply for an ITIN.  That will cause delays now, and more hassles when you need to replace the ITIN with an SSN.