[Rakeshtuli]

I am working in US (on H1B Visa) for full calendar year 2007 (till now). My Spouse and children are in India. They were not in US in 2007 (expecting them to reach US on H4 in July 2008, and I have asked IRS for Extension for 2007 Tax filing). They had no income except what I was transferring from US for support.

For Tax Returns 2007 - What status should I claim - Single / Married but filing seprate / Married but filing jointly / Head of family.

One of my friends told - Along with Tax Returns send Form W7 and supporting documents for Spouse only (can not claim children as dependent) other says person need to be physically present on US soil for claiming ITIN.

Q1 is - Even she has not reached US soil, can spouse and children get ITIN?
Q2 is - Should form W7 bear my Spouse's signature? If YES - I had to mail her the document. If No - can I sign on behalf of her (Her Passport mentions me as her husband)

Q3 is - Why I can not ask for exemptions for my two children?
Q4 is - One child is 5 Years and other is 14 years old - Who will sign for them?

Thanks in advance

[AtlantaTaxExpert]

1) You should file Married Filing Jointly with your wife. Her physical location is irrelevant, and you CAN get her an ITIN even if she is in India. However, you CANNOT get an ITIN for your child(ren), because, as you stated, you CANNOT claim him/her as a dependent.

2) SHE must sign the W-7. You can download the PDF copy of Form W-7 from Internal Revenue Service, fill it out, and email it to her as an attachment for her to print off and sign

3) The IRS guidance on this issue has not been very clear, as there is NOTHING in writing to cover the case of children of couple who file jointly and CHOOSE to treated as resident aliens for the entire tax year. In the past, my tax service has successfully claimed children of such couple as dependents, but this past tax year, the IRS has challenged and denied such filings if the child has spent NO time in the United States. Hence, we are working on the assumption that, to claim the child(ren) as a dependent(s), the child(ren) must be physically located within the border of the U.S. for at least some part of 2007.

4) If you could get ITINs for your children (you CANNOT), YOU, as their sponsor, would sign the W-7.

[MukatA]

Just want to add that on your 2007 tax return, you can deduct Moving Expenses.
Read: Your U.S. Tax Return: Moving Expenses