I am currently on H-1 B and my wife on H-4. We got married in December last year. I am planning to file a W7 for her to get an ITIN, so that I can file Married Filing Jointly.

I have a couple of questions regarding this:

1. She was working in India prior to our wedding. Do I need to report her wages from that? If I do, how is that done?

2. Do they need additional documents like marriage certificate? I am sending a notarized copy of her passport.

I assume you are resident. Check box (e)

Her passport is sufficient. I am confident you do not wish to commit perjury when you sign.

You fill out your tax return as filing jointly and submit that together with the W-7 to:
Internal Revenue Service
ITIN Operation
P.O. Box 149342
Austin, TX 78714-9342

Your wife will elect to be treated as a US resident under sec 6013(h). Thus, you must report her income from India. But, she is entitled to exclude her income and accordingly, may file a Form 2555 or 2555EZ to exclude her income from India.

The election may take this form:
1.We declare that one spouse was a non-resident alien, and the other spouse a U.S. citizen, or resident on the last day of the tax year 2008 , and we choose to be treated as U.S. residents for the entire year and;

2. Our names, addresses, and social security/ taxpayer identification numbers are as follows:

The fact that your wife does not yet have a number will be handled by the ITIN operation.
You would be well served if you locate a certifying acceptance agent in your area. See; Acceptance Agent Program

1. You must both report worldwide income. If you have any foreign income, and on that income you paid taxes in the foreign country, then you can claim foreign tax credit Form 1116 or use Earned Income Exclusion Form 2555.
2. Send W7 (ITIN application) with your tax return. India notary will not be accepted. It should be notarized in India or at the U.S. embassy in India.
Read about H1-B tax filing: Your U.S. Tax Return: The U.S. Visas

My husband has a itin number & we have three kids I know that he can't get the earned income credit but I have drawn unemployment probably about $400.00 if we file together and I am a united states citizen can we get the eic? And if so how would be the best way to file?

If either parent who are filing a JOINT return has an ITIN, then you CANNOT get the Earned Income Credit.

Also, unemployment compensation is NOT considered to be earned income, so if unemployment compensation is your ONLY income, you will not qualify for the EIC in any event.

I am in a similar situation as the OP. My only question: do I sent only the Federal tax return to the Austin center with my wife's W-7, or both, Federal AND State? I ask this, because the IRS website only specifies Federal.

Send only the federal return.

Hi there I receive my w-7 form but did not get my two other kids numbers what do I do in this case ?

I assume that you mean that YOU got YOUR ITIN letter, but not your children's ITIN letters.

These are mailed separately; they MAY just be delayed in the mail, so wait a week before doing anything.

If after a week you still have not gotten the ITIN letters and no other notification from the IRS, you can call the IRS ITIN Processing Center at 1-800-908-9982 and ask why there are no ITIN letters for your children.