Hi,

I'm on H1 and my wife is on H4 visa.

For the year 2007, we filed tax as " Married Filing Jointly". Since my wife doesn't have SSN, I haven't received my tax stimulus refund.

We were blessed with a baby girl in Jul 2008.

Questions :

1) Is it necessary that my wife has to file the tax return, even though she is on H4 and has no income.

2) If not necessary, then can I exclude my wife and file only for myself and Kid as Filing separately. Any issues with it?

Please note that through out 2008, I marked my wife as dependent in W4 submitted to my employer to reduce the withheld tax.

Thanks

1. No
2. yes, you can file as married filing separately.

You can file as married filing jointly (MFJ) or married filing separately. In most cases, it is better to file as MFJ. If you file MFS, you will not get many credits and deductions.Read Your U.S. Tax Return: Filing Status for Married (http://taxipay.blogspot.com/2008/02/filing-status-for-married.html)

Thank You!