Equardo

That’s great that things worked out for you, but you can also understand that since this goes against the instructions provided by the IRS and various software packages, I am not going to give that advice in this forum.
 
@Equardo it looks like some of the big companies are finally catching up to e-filing with a non-resident alien spouse, see this from Turbotax: https://ttlc.intuit.com/turbotax-support/en-us/help-article/tax-credits-deductions/file-taxes-spouse-nonresident-alien/L4AuRKrMd_US_en_US

She isn't required to file a US tax return.

Do MFS and in the SS/ITIN field write NRA (non resident alien). Note that this is only possible with a paper filing. 

I think others answered most of your questions already... Regarding the job history, it sounds like you were self-employed as an IT consultant. I would just list "self-employed IT consultant" or something like that as your job during that time instead of listing everyone you have contracted for. It sounds like they were not really employers.

Thanks for your input. No intention to do any hanky panky stuff, wanting to do the right thing by the book. As I mentioned earlier wife will go back within 3 months even though she's 6 months stay here in the US. I am just trying to educate myself and find the right solution from myriad of often confusing information coming from different sources. 

Thanks for your input. No intention to do any hanky panky stuff, wanting to do the right thing by the book. As I mentioned earlier wife will go back within 3 months even though she's 6 months stay here in the US. I am just trying to educate myself and find the right solution from myriad of often confusing information coming from different sources. 

Only if (a) she entered without the intention of doing AOS and (b) there is a visa number available to her. The latter is the problem as even if you file the I-130 today, there won't be a visa available to her for many years. So she must return to India and apply via consular processing. 
 
 

What that means is that a person cannot AOS as there is no visa number available for the beneficiary.  Numerically limited visa categories such as the family based groups (F1, F2A/F2B, F3, and F4) are limited in numbers each year.  When an I130 is filed for someone in that category, it sits in limbo until nearing a time when a visa is actually available.  When attempting an AOS from one of these categories, the beneficiary has to have a visa available before they can attempt the AOS.  The same is not true of categories such as IR1, IR2, or IR5 that are no numerically limited.

Nobody expects you to have joint banking or lease since you live in different countries. That type of evidence is needed when adjusting status, e.g. if she was in the US already.