I am a HI-B visa holder and my spouse has H4. How do I file jointly with him. What are the steps to take. Also I had my baby here in the US 4 months ago and how do I include her when filing for tax return. She does have a social security number. On my 2011 W2 I have married but legally separated status on federal and state return is single on it and withholding allowance is 1. Do I need to UPDATE MY W2 for 2012 and how do I do it and how many allowances should I allow. As am the only earner in the family for now. Can I also claim my spouse and child as my dependents and how do I do it.
Thanks

You can file jointly with your spouse and you both CHOOSE to be treated as resident aliens. This will allow you to claim the $11,600 joint standard deduction plus two $3,700 personal exemption (for yourself and your wife).

You also get to claim your newborn (BTW, congratulations!) for an extra $3,700 personal exemption PLUS the $1,000 Child Tax Credit.

To apply for an ITIN, you need to complete Form W-7 for your spouse. You need to make a photocopy of hispassport, then get photocopy notarized. This can be done at your local bank in most states in the U.S.

The downside is that you must declare ALL 2011 world-wide income (your AND husband’s home country income, if applicable). There is an offset available by either claiming the Foreign Tax Credit (Form 1116) or to claim the Foreign Earned Income Exclusion (Form 2555).

Even with the downside, this is probably the best way for you to file.

Under IRS regulations, you can update your W-4 to claim MARRIED status, but at most, you can only claim TWO allowances.

If you need professional help to file your return and to apply for the ITIN, double-click on my name above. You will find my email address in the signature portion of my profile.