[vishal bhatia]

Hi,
Problems:
1) No ITIN For spouse.
2) Only 3 days remain to file taxes.
3) worked in 2 states(CA and NC) and I might owe about $10 in NC but will be receiving money in CA and Federal.
4) To claim standard deduction I need to wait until I get spouse's ITIN.

One suggestion has been to take an extension for NC and apply for it when I get ITIN.
HOw much penaly and interest rate will I have to pay?
I have earned about 5300 in NC and already paid 311 in taxes.

Is there a better way to avoid the penalty as well as claim the standard deduction.
Can I send whatever amount I calculate and later claim filing state return.

[AtlantaTaxExpert]

Vishal:

File the extension for the IRS (Form 4868), plus extensions with CA and NC (get the extension forms from the state government websites).

When you file the NC extension, send a check for about $25 to cover any added tax you may owe. You'll get it back when you file your NC return.

Download W-7 from www.irs.gov, fill it out, have your wife sign it and attach it to your tax return, along with a notarized copy of her passport. Send it to the address on W-7 instructions.

IRS will issue the ITIN, insert it where your wife's ITIn should, process the return and mail your wife's ITIn back to you. Then (and only then), you can file the NC and CA tax returns.

[gurjit]

Thanks Atlanta help desk
I am My wife have both been here in the US for >183 days and as I understand for the publication 519 we are resident aliens for taxation purposes.My wife filed the ITIN application but her form was rejected with the reasin that she is on a J2 visa and so is not eligible for a ITIN and my deduction was disallowed.can you shed some furhter lite on this topic.

Gurjit

[AtlantaTaxExpert]

Gurjit:

Did you attach a statement signed by BOTH of you stating that you qualified to choose to be treated as resident aliens for ALL of 2006 and that you are making the explicit choice to be treated as resident aliens?

That statement is REQUIRED to be signed by BOTH of you and attached to your tax return. I have at least ONE client whose ITIN request was denied because they failed to sign the statement.

[rajkot]

Gurjit:

All J2 visa holder are not eligible for ITIN but they are eligible for SSN. For that You must apply for I-766 card (employment authorization document)and once it approve (about 4 months) then go to social security office with that card you will get SSN for your J2 visa holder.

[AtlantaTaxExpert]

I disagree.

If a J-2 has no need or desie to work, then can and should apply for an ITIN by submitting Form W-7 with the tax return of the J-1 visa Holder. However, you must be sure that the J-1 visaholder can in fact claim the wife as a dependent. Only J-1 visaholders from certain countries can claim the spouses as dependents.

Rajkot: I AM curious why you chose to answer a post that is about FIVE years old?