New ITIN for J2 dependent

[suvadip mallick]

I am having a J1 Visa. I am filing my tax as individual now in 2019. My wife and my baby will join me in March 2020 with J2 Visa and will be staying for 1 year. Do I need to have ITIN for both of them to file tax return in 2021?  If so, then what should be the procedure? Should I return file in 2021 as married and individually?

[DavidS127]

Yes, you will need an ITIN for anyone listed on your tax return.  For details on how to do so, click these links for Form W-7 and Instructions for Form W-7.

I'm also including these links to IRS Publication, 519 U.S. Tax Guide for Aliens and IRS Publication 54, Tax Guide for U.S. Citizens and Resident Aliens Abroad.  

Note that once you have met the test to be treated as a resident alien for tax purposes (Green Card or Substantial Presence Test), you have the option to have your nonresident spouse treated as a resident and file a joint tax return.  This includes situations in which one spouse is a nonresident alien at the beginning of the tax year, but a resident alien at the end of the year, and the other spouse is a nonresident alien at the end of the year.

[suvadip mallick]

Thanks for your answer. I came here on J1 visa in April 2019 only. As my wife and baby stayed back in India should I file tax for 2019 as married individual ? Also, please let me know when my family will be here from March 2020 to Febtuary 2021 on J2 visa,  will I be eligible for tax exempt for J2 dependents in the tax year 2020? If so, do I have to apply for ITIN for both of them in 2020?

[KarenJ2]

If you are a J1 student,and have not  been in the US previously on either a J1 or F1 visa, you will need to file a nonresident tax return for 2019.  .  TurboTax does not support nonresident returns.  We partner with Sprintax.com  for nonresident returns.

Nonresident returns can only be filed as married filing separately or single.  

Generally dependents are not entered on a 1040NR.. Only U.S. nationals, residents of Canada, Mexico, and South Korea, and residents of India who were students or business apprentices may have a qualifying dependent on line 7.

Children without Social Security numbers do not qualify for the Child Tax Credit.  However for the Credit for other Dependents is a non-refundable tax credit up to $500 per person and allows ITINs should they be able to be claimed on a nonresident return next year.

[DavidS127]

Community user KarenJ has posted the response to your question.

[Edited 02/24/2020|8:49am PST]
@suvadep mallick

[Sam Hopi]

I have a question, so If I am non-resident (visa student) and have to file 1040-NR AND and wife does not have ITIN when I will be able to apply ITIN for her? I think ITIN works when I met present test and file 1040. If I am wrong please correct it.

Thanks for your help.

[MarilynG1]

If you are a student in the US on a Visa, don't count the days you are here in that capacity for the Physical Presence Test.  

You are correct that you would need to file a 1040-NR in that instance. 

Here's more Tax Tips for Resident and Non-Resident Aliens. 

You should be able to file a Form W-7 for your spouse with your 1040-NR  tax return, prepared through Sprintax. 

@Sam Hopi 

[Sam Hopi]

Thanks MarilynG1 for response.

 I think ITIN works when I met present test and file 1040. If I am wrong please correct it.

My question in fact it is that while I am in exempt individual periods what is the benefits to get ITIN for wife as long as I have to file 1040-NR?

[DaveF1006]

According to the IRS, an ITIN must be obtained by the following persons:

1. A nonresident alien individual claiming a tax treaty benefit
2. A nonresident alien filing a U.S. tax return
3. A resident alien (who is treated as a resident alien for income tax purposes based on days present in the United States) who files a U.S. tax return
4. A resident or nonresident alien individual who can be claimed as a dependent of a U.S. citizen or resident alien on a U.S. tax return
5. A resident or nonresident alien spouse who isn't filing a U.S. federal tax return (including a joint return) but who can be claimed as a dependent on a U.S. tax return
6. A resident or nonresident alien electing to file a joint tax return with a spouse who is a U.S. citizen or resident alien
7. A nonresident alien student, professor, or researcher filing a U.S. tax return or claiming an exception
8. A resident or nonresident alien individual who can be claimed as a dependent or a spouse of a nonresident alien U.S. visa holder

Please read IRS topic 857 for further information. 

@Sam Hopi 

[MANI1346]

 I think ITIN works when I met present test and file 1040. If I am wrong please correct it.

My question in fact it is that while I am in exempt individual periods as a non-resident what is the benefits to get ITIN for wife as long as I have to file 1040-NR? My country does not have tax treaty with the U.S. 

Also, #8 says : A resident or nonresident alien individual who can be claimed as a dependent or a spouse of a nonresident alien U.S. visa holder

If someone is resident sure has SSN, I think residency for this part it means when a visa student met present test? right!

Thanks to clarify it

[MarilynG1]

If you include your spouse on your 1040-NR (filed with a W-7 for her ITIN), you get the Married Filing Jointly standard deduction of $27,700.

If you file as Head of Household (without your spouse, but with a child), the standard deduction is $20,800.

So depending on what your income was for 2023, there is a difference of about $7,000 deduction from income if  you include your spouse.  

Remember, that NONE of the days you are in the US on a Student Visa count towards the Physical Presence Test, which is why you need to file a 1040-NR. 

You will need to mail in your return.

Here's more info on Filing with Non Resident Spouse. 

@Sam Hopi

@MANI1346 

[Sam Hopi]

Thanks but as I searched ( I am non-resident (visa student)) and have to file 1040-NR  a non-resident can not file Married filing jointly should be single or married filing separately and must use itemized deduction which is equal to state tax that is why I am confused why a visa student during exempt individual get ITIN for wife? Please check form 1040NR : Filing status

Also, #8 says : A resident or nonresident alien individual who can be claimed as a dependent or a spouse of a nonresident alien U.S. visa holder

If someone is resident sure has SSN, I think residency for this part it means when a visa student met present test? right!

[DaveF1006]

 U.S. nonresident aliens filing Form 1040NR cannot use the standard deduction nor all the itemized deductions afforded to U.S. resident aliens, nor can they file jointly if married. There is no point for a non-resident alien to apply for an ITIN for a spouse if the spouse has no intention of living or working in the US. In addition, claiming dependents is much more difficult.

A visa student becomes a resident when either he/she is eligible via of the green card test or the Substantial Presence Test.

@Sam Hopi