@mikekulhanek wrote:
I am a US citizen. She is citizen of Peru. Because she violated a tourist visa, she cannot enter the US at this time. She has a minimal income in Peru.
Ok, not quite enough information. Taxes are a bit different than immigration enforcement.
Your wife is a US resident (making her a US person for tax purposes) if she lived in the US for enough days to pass the substantial presence test, regardless of her immigration status. The test is here.
https://www.irs.gov/individuals/international-taxpayers/substantial-presence-test
You don't say when she left the US or how long she was here. I assume you are preparing a late 2022 tax return, so let's assume we are talking about 2022. If your wife passes the substantial presence test for 2022 then she is a US person for tax reasons. She is required to report all her worldwide income and pay tax to the US. If she also pays tax in Peru, she can claim a deduction or partial credit on her US tax return. She will need an ITIN (international tax ID number). You can either file a joint tax return (married filing jointly) or you can each file separately (married filing separately). If you file jointly, you may pay less tax or get a larger refund, but she has to declare any income she had in Peru. If you file separately, you may pay a higher tax rate,, and she is still required to declare all her worldwide income.
If she does not have an ITIN already, then you would prepare the tax return and print it out. Both of you need to sign. You also prepare a form W-7 ITIN application, which she needs to sign. You mail the tax return and the ITIN application (along with any required documents) to a special office at the IRS and after they issue the ITIN, they will process the tax return. You may need to use an express courier like Fedex to send the documents back and forth for signature, if the mail is not good enough and you won't be visiting her in person.
If she is not a US person for 2022 (does not pass the substantial presence test) then you have two options.
A. She is a non-resident alien. She must only file a US tax return if she had income while living in the US, and she only reports her US income, not her world-wide income. This would be a form 1040-NR. Turbotax does not prepare form 1040-NR, you need to find another preparer or software company. You file as married filing separately. In the space for her social security or tax number, use 999-88-9999 as a temporary number. Print the return, cover the temp number with white out, and write in "NRA". Sign your return and mail it. You can't e-file in this situation.
B. You choose to treat her as if she was a US resident for tax purposes. File a joint return and apply for an ITIN as described above.
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If she is not planning to return to the US ever, then she may be a dual-status alien for the tax year she left the country. This is complicated and you should get professional help.
If she is planning to return to the US, you should know that one of the questions she will be asked when applying for a green card is, have you paid all the income taxes you owe for the time you lived in the US.
You may want professional help for the whole situation.
