[kurbin]

Hi, I am a US citizen and I got married in 2007. My wife lives abroad and has never come to the US yet (due to visa issues). Can I still file as joint return?

[MukatA]

You have only two choices: Married Filing Jointly or Married Filing Separately. In both cases, you will need ITIN for your wife. You will attach W7 with your tax return.
Even for MFJ it is not necessary that your wife has ever been to US or not. She has any income or not.

[kurbin]

You have only two choices: Married Filing Jointly or Married Filing Separately. In both cases, you will need ITIN for your wife. You will attach W7 with your tax return.
Even for MFJ it is not necessary that your wife has ever been to US or not. She has any income or not.

That's great, thank you! The reason that I asked is because I had thought the same thing but when I spoke to an (incompetent) IRS representative last night they said that I would not be able to receive the tax benefit (ie two deductions) if my wife has never been in the US. That was weird to me since that's why she's considered a "non-resident alien." But per Publication 519 I can file as MFJ. I obviously need to apply through a W-7 for an ITIN. So in your opinion I can receive the tax benefit?

[MukatA]

Even if you file as MFS, you can claim deduction for your spouse if she did not have any income in 2007.

[IntlTax]

And if you don't want to go through the process of getting her an ITIN, you can simply file MFS and put "NRA" in where her SSN would go. In this case, though, you would not be able to claim her exemption.

[MukatA]

Yes, to claim exemption for your spouse (if spouse did not have any income) on MFS, you must enter the ITIN.
And it is always better to get ITIN for your spouse and kids.

[IntlTax]

It is better to get an ITIN for your spouse, but there is no requirement. Some individuals may decide that the time and effort necessary to get the ITIN outweigh the benefit.

[kurbin]

Thank you everyone, that was really helpful. I saw something on the IRS site that said that I am not elegible for the $600x2 tax rebate because my wife lives abroad. Is this really the case? Do I not qualify for at least $600 instead of the 1200?

[AtlantaTaxExpert]

First, you can and SHOULD file jointly with your wife. Her physical location is irrelevant to the decision as to whether you can file jointly or not. She can be on Mars for all the IRS cares.

Second, her added $3,400 personal exemption plus the extra $5,350 added to the standard deduction generates MUCH MORE tax savings than the $600 stimulus rebate check.

Now, you CAN file MFS and put "NRA" where your wife's SSN would go to get the $600 stimulus check, THEN amend the return to file jointly and get her ITIN. It's up to you to decide if the $600 is worth the hassle of amending the return.

[IntlTax]

Although ATE concludes that you SHOULD file jointly with your wife, I am not able to arrive at this conclusion without more information about your wife, her income level, and her assets.

Depending on her situation, there may be planning steps that she should take prior to electing to be a resident for U.S. tax purposes. These steps may allow her to avoid U.S. tax on assets located outside the U.S. In addition, if she owns certain interests in foreign entities, electing to be a U.S. resident could create a U.S. tax filing nightmare for her. The penalties for failing to file a variety of U.S. tax forms related to ownership in non-U.S. entities can be huge.

[AtlantaTaxExpert]

IntlTax's cautions are appropriate if she does have any of the financial circumstances he cites. I stand corrected.

[IntlTax]

There are other considerations that should be taken into account as well. It is important that your tax advisor fully understand your circumstances to be able to provide you adequate advice.