Married American filing taxes - wife still lives in Canada

[Birzun 0]

Hi guys. I'm sure someone has posted a similar thread in the past, but the search function isn't the greatest and I came up short. Well, we got married a few months ago in Canada. We haven't started the immigration process yet, but will be very soon. She'll be coming here. We're familiar with what we need to do and have it all planned out.

However, I thought taxes wouldn't be a big deal, that I'd just do "married filing seperately" and it would be simple. Boy, was I wrong. I need to report my spouse and include her Social Security Number (doesn't have one, of course) or ITIN (also doesn't have one). I read through the W-7 form and the instructions. https://www.irs.gov/pub/irs-pdf/iw7.pdf

Under the "who must apply" section I don't see anything that exactly describes us. Do I HAVE to file as married? I really want to, and it might help the immigration process if she is registered as my wife with the IRS, but I don't know. If I do need to fill out a W-7, I see it says to attach the W-7 to the front of your tax return, but I was going to e-file. Anyone have any suggestions? If you need more details, please feel free to ask. I'll be actively checking this thread.

Also, if I have to file as married, should/can I do "filing jointly?" Even if she is going to be filling out her own Canadian tax return?

Thank you!

[NikLR 13,231]

No you do not need to include her SSN or an ITIN. What you need to do finish the form with only you, print it and hand write "NRA" non-resident Alien in the SSN spot. Then you MAIL the tax return vs sending it electronically.

At this time you cannot e-file.

Also as a note, if your wife has children in Canada, she will need your income on her tax return.

[Birzun 0]

Thanks for the super quick reply. No, she/we have no children. Do I file as jointly or seperately? No one else knows of a way to e-file? Would I HAVE to get an ITIN to e-file? Does she even qualify for ITIN?

[tsabbas 47]

Sorry, you can't efile right now if you're doing any sort of married option, which technically you are required to do as you are married.

I did married filing jointly and sent in the W-7 with my husband's passport copy. I just sent it with the tax return. I don't know if that delayed it or not - we had our return in about 4 weeks.

I know it sucks not efiling! But you can next year with the ITIN if there's no social security number yet. We did the paper form for 2014 taxes but I was able to efile 2015 with the ITIN.

[Birzun 0]

I did married filing jointly and sent in the W-7 with my husband's passport copy. I just sent it with the tax return.

So were you both already living together in the US when you filed it jointly? I'm still a little unclear on whether I should do joint or seperate.

[tsabbas 47]

So were you both already living together in the US when you filed it jointly? I'm still a little unclear on whether I should do joint or seperate.

No, he was not living here in the US at the time of either filing. In fact, he is not here yet. We did joint because it was better financially for us. Your situation may be different.

If you do separately, you can always do an amended return later after the SSN is available. Not required but may be a tax advantage for you down the road.

What you could do is prepare two forms - one separate, one joint - and see how it works out. Then use the one that is better for you now.

As long as you're filing married in some way, there nothing wrong with comparing the outcomes before you officially file.

Edited January 31, 2016 by tsabbas

[Birzun 0]

Oh, nice. I read that finanically, filing jointly is almost always best. I just figured I couldn't do joint filing unless we were living together, or at least both in the country.

So the best thing to do is a paper return with W-7 attached, filing it jointly. Anyone have any additional comments? Thanks!

[Thozelle 16]

Oh, nice. I read that finanically, filing jointly is almost always best. I just figured I couldn't do joint filing unless we were living together, or at least both in the country.

So the best thing to do is a paper return with W-7 attached, filing it jointly. Anyone have any additional comments? Thanks!

Your decision.

You can ammend your return to mfj at a later date and just file mfs now. We did mfs then ammended with w7 to mfj the following year. Ours took 9 weeks to get the ITIN and 20 weeks total before ammended return finalized.

[NikLR 13,231]

Normally if you're close to the NVC stage I wouldn't suggest doing MFJ because you have to send the beneficiary's passport to get the W-7.

[Birzun 0]

Normally if you're close to the NVC stage I wouldn't suggest doing MFJ because you have to send the beneficiary's passport to get the W-7.

Hmm, so are you saying that if I do MFS, I don't need to submit the W-7? I saw you said earlier I can just put NRA instead of a ITIN on the form. And if I do MFJ I need to do it with that form?

We would have to get a certified copy of her passport because we can't go without either of us having our passport on hand. Especially for possibly 20 weeks like the previous poster mentioned.

[NikLR 13,231]

Yes to both

And I'm not sure if she can for the passport.

[tsabbas 47]

Just my input but we did not send any actual passport with the W-7. I just sent a copy of the copy we had sent with our I-130. Maybe the rules have changed in the last few months but I can't imagine the IRS would ask you to mail them an actual passport. Are you sure about that?

The process went smoothly for us getting an ITIN but it sounds like the experience varies quite a bit for everyone. You might consider calling IRS and seeing if they have a local office near you. Might help to get more direct information!

[Birzun 0]

Yeah I figured I'd have to call, I just wanted to get some more basic info and read about some people's experiences. Thanks once again guys! If anyone else wants to add anything, please feel free.

[MariaR323 199]

Your wife is considered a nonresident alien (NRA) for tax purposes. Hence, you have the following options:

1. NRA spouse + Filing Separately

You can file a paper return via mail as Married Filing Separately (MFS) and write "NRA" in the SSN/ITIN field for the NRA spouse. You do not need to report anything for your NRA spouse since you are filing separately. Generally speaking, MFS is the least favorable filing status.

SSN/ITIN not needed.

2. NRA spouse + Filing Separately + Spousal Exemption

You can also file Married Filing Separately (MFS) AND claim an exemption for your NRA spouse ONLY IF the NRA spouse has no U.S. source income. Although MFS is generally the least favorable filing status, this option at least allows you to claim the spousal exemption.

SSN/ITIN is needed.

3. NRA spouse + Filing Jointly

You can choose to treat your NRA spouse as a resident alien (RA) for tax purposes for the entire tax year in question. This option allows you to file a joint return (MFJ) and you are eligible for all deductions/credits available to a U.S. Citizen/Resident. You would be required to report BOTH spouse's worldwide income. A special election statement needs to be attached to your return indicating this choice. See this link for the election statement to write: https://www.irs.gov/Individuals/International-Taxpayers/Nonresident-Spouse-Treated-as-a-Resident

SSN/ITIN is needed.

The question of what choice to make depends on which method produces less tax. Generally speaking, MFJ where foreign income is present (or not) should compute to be the most favorable option. Where foreign income is present, you can apply the more common foreign earned income (FEI) exclusion or foreign earned income (FEI) tax credit to not pay tax twice on the foreign income.

2015 FEI Exclusion: up to $100,800

As for the ITIN application if you go that route, you may be able to avoid having to send in the passport for your foreign spouse but please read the requirements for the Identity/Foreign Status docs. You may be able to send in a certified/notarized copy of the passport but double check. See this link for the instructions on the W-7 and ID requirements: https://www.irs.gov/pub/irs-pdf/iw7.pdf

Maria

[NikLR 13,231]

No you need to submit an original or certified (not notarized, certified copy from original issuer) passport, not a photocopy.

For Canadians you can request a certified copy of it with this form http://www.cic.gc.ca/english/passport/forms/pdf/pptc516-eng.pdf

Info also available at http://www.serbinski.com/taxation-in-usa/ssn-and-itin.shtml (specific for Canadians)

Just my input but we did not send any actual passport with the W-7. I just sent a copy of the copy we had sent with our I-130. Maybe the rules have changed in the last few months but I can't imagine the IRS would ask you to mail them an actual passport. Are you sure about that?

The process went smoothly for us getting an ITIN but it sounds like the experience varies quite a bit for everyone. You might consider calling IRS and seeing if they have a local office near you. Might help to get more direct information!

https://www.irs.gov/pub/irs-pdf/iw7.pdf

IF you managed to get an ITIN without one, it's amazing.

I can't even file my taxes yet because some of my documents aren't available until 2/10...