Hi:

Me and my wife are in US on H1 and we have two issues in filing tax return this year.

We have four year old daughter and in order to obtain "child tax credit" and "child care credit" we should have tax id for our daughter. As per the procedure we need to send completed W7 and income tax return to the IRS. We did the tax calculations and found that we OWE a federal tax of 4500USD if we don't use our daughter's tax id and if we do the calculations assuming that she has a tax id then the tax we OWE comes out to be 2700USD.So now we have two issues:

1) Should we mail a check of 2700USD to the IRS or 4500USD to the IRS along with other completed docs and forms?

2)Also do we need to file the state tax return after we get her tax id or federal and state tax returns will be processed along with W7 at the same office?

I will really appreciate if any body could please reply on this issues.

Thanks
KPS

KPS:

1) If you are confident that your tax calculations are accurate, then, yes, enclose a check for $2,700 when you submit the W-7 with the tax return. Be sure you put your SSN on the check.

2) You will have to wait for the ITIN before filing the state income tax return.