I am on H1b(Resident Alien) but my wife moved to USA in December(2020) on F1 Visa. Can I file jointly and claim her as resident

[pktaxquestions]

Hello Everyone,

I am currently on H1b from October(2019). I got married in February 2020. But my wife moved to United states on an F1 Visa in December 2020. Can I file Jointly and claim her as a resident. She currently doesn't have SSN/ITIN. How can I proceed on taxes. Kindly advise, I appreciate the help in advance. 

Also partly I am funding her education can I avail some tax benefits on her tuition fee?

[DavidD66]

Since you were married on December 31 you have to file as MFJ or MFS. As a US Citizen or a Resident Alien, you have two choices in filing your taxes.

Option 1

Treat your spouse as resident alien for tax purposes.   If you do this, you will need to include your spouse's worldwide income in your US tax return and it will be subject to US taxes.  To do this follow these steps.

1. Attach a statement to your tax return, signed by both spouses, that states that one spouse is a nonresident alien and the other is a U.S. citizen or resident alien, and you are choosing to both be treated as US residents for the tax year.
2. List the name, address and Social Security number (or Individual Taxpayer Identification number) of each spouse. If your spouse has a social security number you will use it.  If not, you will need to apply for a number using Form SS-5.  If your spouse is not eligible to apply for a Social Security number, complete a Form W-7, Application for IRS Individual Taxpayer Identification Number (ITIN) (http://www.irs.gov/pub/irs-pdf/fw7.pdf).  This form will be attached to your tax return.  Turbo Tax does not support the Form W-7.  You can complete it outside of Turbo Tax.  You will have to print, sign and mail your return in if you are using Form W-7.
3. For the first year you make the choice, you have to file a joint return. In later years you can file joint or separate returns. Married Filing Jointly will give you a higher standard deduction and has other benefits that are not available using a married filing separately status, but you do have to include your spouse’s worldwide income in joint income.

Option 2

Treat your spouse as a nonresident alien for tax purposes. You will not have to include your spouse’s non-US income on your U.S. tax return. You will have to use the filing status of Married Filing Separately.

https://www.irs.gov/Individuals/International-Taxpayers/Nonresident-Spouse-Treated-as-a-Resident

If everyone on the tax return has a social security number or ITIN, you should mail your return to the address listed in the 1040 instructions.  Tax returns with a Form W-7 should be mailed to the Austin TX address.

[pktaxquestions]

In this case, can I still file taxes through Turbotax. What plan is suggested to buy? 

[DaveF1006]

Yes, if you are a resident alien and meet the requirements in this IRS link, you can file a resident return with Turbo Tax. As DavidD66 mentions above, you can file jointly or you can file Married Filing Separately in option 2. If you decide to treat your wife as a non-resident alien, she will need to file Married Filing Separately but would need to file a non-resident return to file. 

For her to file a non-resident return, she can file with sprint tax, which is one of our affiliate tax partners.

[pktaxquestions]

I have decided file as MFJ(Married Filing Jointly). Since my wife is a non resident, wanted to know if turbotax support this(Note: My wife doesn't have ITIN and have to apply for it as she is not eligible to have SSN). If its supports what are the plan options i have to buy.

[DaveF1006]

To file this return jointly, please follow these steps.

   1. Attach a statement to your tax return, signed by both spouses, that states that one spouse is a nonresident alien and the other is a U.S. citizen or resident alien, and you are choosing to both be treated as US residents for the tax year.

   2. List the name, address and Social Security number (or Individual Taxpayer Identification number) of each spouse.  You will need to complete a Form W-7, Application for IRS Individual Taxpayer Identification Number (ITIN) (http://www.irs.gov/pub/irs-pdf/fw7.pdf).  This form will be attached to your tax return.  Turbo Tax does not support the Form W-7.  You can complete it outside of Turbo Tax.  You will have to print, sign and mail your return in if you are using Form W-7. If you haven't received an ITIN or Social Security number prior to filing, leave the Social Security number blank and you will need to file this return by mail.

   3. For the first year you make the choice, you have to file a joint return. In later years you can file joint or separate returns. Married Filing Jointly will give you a higher standard deduction and has other benefits that are not available using a married filing separately status, but you do have to include your spouse’s worldwide income in joint income.
 

[pktaxquestions]

Thanks for the reply. I also have another question. So  I haven't received first & second Stimulus cheque till date. I am on H1b From 2019 October so I will pass the Substantial residential test as of now. Can I know how can I claim the past stimulus cheques?

Also do you mean I cannot use any tax software to file ITIN along with taxes I have to do a manual paper filing for 2020 taxes?

[npierson7]

Unfortunately you cannot apply for an ITIN through TurboTax. You will have to file a Form W-7 separately Form W-7 . You can use TurboTax to prepare your return and you can claim the Rebate recovery credit, or stimulus payments with your tax return. You'll need to fill out Rebate Recovery credit section and put 0 as amount of stimulus payments received. After you complete your tax return, you'll have to print it out and mail it to the IRS. Because of the ITIN application, you won't be able to e-file your return. 

[pktaxquestions]

@npierson7 Thanks for the response. However, I tried entering details of my wife ITIN, turbotax software wont let me go through without entering my wife ITIN/SSN in the field.

[ReneeM7122]

Correct, in order to e-file through TurboTax, each taxpayer must have an SSN or an ITIN.  

If your spouse doesn’t have a Social Security number or ITIN, you’ll need to apply for one when you mail in your return. To do this, follow steps 1–3 above and then do this:

1. Fill out Form W-7 and attach it to your return, as well as all necessary documentation.
2. Mail the return to the address specified in the Form W-7 instructions.

Here is a TurboTax article that discusses how to file if your spouse is a nonresident alien.

@pktaxquestions

[pktaxquestions]

Can I instead first file for tax extension manually using 4868 form 

1. after filing extension apply for my wife ITIN

2. once I get her ITIN then I will go ahead and file the taxes to have less complications so that I can e-file

also how much I have to pay to TurboTax just to prepare a paper filing document I am on premier package due to 1099s

[MaryM428]

When you file an extension, you will pay for TurboTax and you also must pay any income tax due by April 15.  

There is no reduced TurboTax charge if you are just filing Form 4868.  

You can also download Form 4868 from the IRS site for free.

You can apply for an ITIN in person by following these ITIN directions.

[pktaxquestions]

Thanks for the reply I see that currently TurboTax website says currently this feature is not available and also it seems TurboTax website mandates for spouse itin while filing for extension through online and the whole issue is to file itin for my wife before filing taxes

[DaveF1006]

Yes, you will need to wait for your wife to receive her ITIN if you wish to electronically file or take my suggestion and file by mail by performing the steps I mentioned in my earlier post in this thread.

[pktaxquestions]

Thank you very much for your response. Can I know how to inform state tax agencies regarding my wife ITIN application is in pending when I file it as a paper-based filing. I have to file for Missouri and Kansas