[rakeshkoul]

Hello Tax Experts,

I am working in US on H4 visa since March 2006 and my wife is here since Aug2006 (she is on H4 - dependent visa)

Questions:
1. I was told that I have to get an ITIN number for my wife to get tax benefits and once I get that, I should file taxreturns. I went to H&R block for getting the ITIN and filing the returns. They applied for the ITIN and at the same time filed the return (with some temorary ITIN). When I asked about ITIN benefit, they said they will file my retuns now and later when we get the ITIN, they will file for spouse tax deductions. My calculations showed returns of approx 4600 while H&R is showing 4100 (w/o spouse tax benefits) and they say I will get the rest once I file with ITIN modifications. Can you please let me know if this is the correct way of doing this?

2. Can the benefits w/ and w/o ITIN differ by 500

TIA.

Thanks,
Rakesh

[AtlantaTaxExpert]

Rakesh:

First, call the local IRS office and see if they can handle an ITIN application.

If so, have the tax return prepared with your wife's name under yours, but leave the SSN area blank. Then go to the IRS office and submit the ITIN and W-7 (ITIN Application), along with your wife's passport. They will issue you the ITIN, insert it into the blank SSN area, and submit your tax return for processing.

If not, then fill out the W-7, get her passport photocopied, get the photocopy notarized, and staple it to the W-7. Be sure your wife signs the W-7.

Then complete the joint tax return, again leaving the SSN area for your wife blank. BOTH of you sign the tax return. Mail the return, the W-7 and the notarized passport photocopy to the address in the W-7 instructions. The ITIN personnel in Texas will issue the ITIN and process the return. They will then send your wife her ITIN by separate letter.

Then (and only then) should you file your state tax return.