Originally Posted by AtlantaTaxExpert
MukatA's advice is accurate EXCEPT for the child. While we have successfully filed returns claiming dependency for children NOT located in the U.S., recent developments indicate that the IRS is rejecting such claims in 2007 tax returns.
Hence, we are now working on the assumption that, to claim a child as a dependent, the child must spend at least SOME time being physically located in the U.S. For this reason, you cannot claim your child on your 2007 tax return.
Filing jointly with your spouse is a different matter entirely. Your spouse is NOT your dependent; he/she is your co-filer. Hence, his/her physical location is irrelevent; he/she could be on Mars for all the IRS cares. You can and should apply for an ITIN for him/her using Form W-7 and file jointly with him/her using Form 1040, 1040A or 1040EZ.