[arizonaguy]

Hi,
I am an Indian National with F1 status since aug, 2003, in AZ state. My wife joined me last year here on F2 status. She can't have SSN as an F2 and does not have ITIN. However, her application for H1B1 is in process right now and soon she will be getting her paper work. I found that one cannot have both SSN and ITIN.

So my question is for 2007 taxes, how do we file jointly to claim standard deduction and personal exemption for both (as she does not have SSN or ITIN). If I send my taxes right now requesting ITIN, then later on she will have to get SSN also.

Also I came to know one must be denied an SSN before applying for ITIN. Is that true?

Should we get an extension and wait for her to get SSN or should I send the taxes requesting for ITIN. Also, can W-7 be used for non-resident aliens. What I mean is ITIN website indicates to not send the tax returns to the address listed in 1040, 1040EZ or 1040A but instead to the Texas address. But no where does it mention 1040NR, which is what we will be using for 2007 as I am still NR for tax purposes.

Finally, I can get rid of all this problem by simply filing for 1040NR-EZ where I don't have to get my wife ITIN, but then I cannot claim her personal exemption (and I believe standard deduction too)! And lost a lot of money! Too bad! :(

I will appreciate any help. Thanks a lot.

[MukatA]

If you have F1, then for 2007 you will file nonresident tax return. You cannot file joint return.
As per tax treaty, you can claim exemption of your wife if she did not have any income. It does not matter if she is in India or the U.S. Attach W7 (ITIN application) with your tax return.

You should apply for ITIN if you are not eligible to get SSN. Currently she is not eligible.

[arizonaguy]

If you have F1, then for 2007 you will file nonresident tax return. You cannot file joint return.
As per tax treaty, you can claim exemption of your wife if she did not have any income. It does not matter if she is in India or the U.S. Attach W7 (ITIN application) with your tax return.

You should apply for ITIN if you are not eligible to get SSN. Currently she is not eligible.

I am not sure if I understood this well. So will I fill out 1040NR-EZ or 1040NR? So far, I had always filled out 1040NR-EZ as a single.

Lets say I file 1040NR. To claim exemption for my wife also (i.e. 2 x $ 3400), I will check option 5 (other married non-resident alien) and then in 7c, claim her as dependent (she does not have any income). Now here is the rub. I don't have her ITIN. IRS does not process without. So to make sure, will I fill out W-7 along and send the whole package to ITIN Texas address rather than IRS.

Also, what did you mean it won't be joint return? Does joint return mean, when she has an income too. And can I claim standard deduction (2 x 5350) and personal exemption (2 x 3400) for both of us on 1040NR.

For state tax, since I don't have ITIN for her, how do I claim her as dependent.

Finally, as I said, her paperwork for h1b1 (academic H1B) is already under process right now and hoping to get by May 15. So is it okay to file for ITIN now, and then later get SSN also. I read that one cannot have both ITIN and SSN. only one of these.