[kin mun]

My wife came to the US in Aug 2008 on a dependent visa (H4). Recently we applied for an ITIN for her by sending some relevant documentation (W7) to the IRS. We got back a letter saying they cannot issue the ITIN for some reason (did not attach a valid US federal tax return to your W7 form).

I thought I would first get the ITIN for her which I can use when I file jointly (married) when I file before April 2009.

Can someone please help me on how do I go about with this?

Thanks in advance..

[AtlantaTaxExpert]

Unless you have a pressing need for your wife's ITIN (say, to open a bank account or for her to attend school), the IRS only issues ITINs when the W-7 is submitted with your annual tax return.

Re-submit the Form W-7 with a notarized photocopy of your wife's passport (make copies of only those pages with information on them; you can get notarization done at your local bank) stapled to the W-7, then paper clip the W-7 to the front of your tax return and mail it to the address in the W-7 instructions.

[kin mun]

Thank you,

So, this means that they do not require ITIN for my wife - for me to claim her as a dependent?

Or do I wait for her ITIN to arrive before I can file my taxes for 2008?

Your response is highly appreciated!

[AtlantaTaxExpert]

They require the ITIN; that is what the W-7 is for, to apply for the ITIN. You submit the tax return with the SSN area BLANK.

The IRS will evaluate the W-7. If all is in order, they will issue the ITIN and FILL IT IN FOR YOU on the tax return, then process the return.

After the return is process, they then mail your wife her ITIN in a separate letter. You will need the ITIN to file the state tax return, which must be held in abeyance until you get the ITIN back from the IRS.

[kin mun]

Thanks - so basically I cannot file electronically (e.g. turbotax or so)? Because it needs to have SSN or ITIN filled for my wife.

I also came across a thread online where it mentioned you cannot claim your wife as a dependent (e.g. H4) and that you can only file jointly.

[kin mun]

Sorry, one last thing:
Do I need to send my paper filing to 2 different locations for IRS to process my returns (and issue my wife's ITIN)?

Approx how long does the process take?

[AtlantaTaxExpert]

That is true, you will NOT be able to file electronically this year because you are getting the ITIN.

Next year, once she has the ITIN, you can efile.

Actually, when you file Married Filing Separately, you CAN claim her exemption if she is not going to file her own return, but filing jointly increase the standard deduction from $5,450 to $10,900, so why NOT file jointly?

You mail the tax return and the Form W-7 to the ITIN processsing center in Texas (exact address in the W-7 instructions).

If you mailed it today, you would get it in about 3-4 weeks. Mail it in late February and you may wait 2-3 MONTHS, because the volume SPIKES up the last week of February.

[kin mun]

This is really helpful - thanks a lot!

Though she is on H4 - she is a full-time student. Can I claim some deduction relating to her tuition fees when I file jointly?

Also, do you suggest any tax consultant in NJ that you may know who understands these situations and will file for me?

[AtlantaTaxExpert]

Yes, you CAN claim here education costs, either as a deduction or as a credit.

If you need professional help, email me at [email protected]. We specialize in cases like yours, and we have references from the NJ area.