[jahirju30]

Hello,

BACKGROUND:
I am from Bangladesh; I first came to US in Aug 2012 on J1 Visa (Fulbright Scholarship Program); after MA, I started PhD in Sep 2014 on F1 visa. My wife first join me here in Nov. 2012 on J2 visa, and she is now on F2 since Aug. 2014. So, far only I have filed taxes through Grantax (through Fulbright; my wife did not file anything. However, now she received tax credit for a health insurance from Obamacare, which requires her to file taxes, and I am not sure what the best way would be. I also have a newborn baby who was born on Oct. 31, 2015.

QUESTIONS:
1. Should I file jointly with my wife(F2 visa holder) showing her as a dependent? Or, should be file individually?
2. If YES, can I file tax return and at the same time apply for ITIN no. for her?
3. Can I (or my wife) claim my child as a dependent? What would be the benefits?
4. What would be the benefits of showing my wife as a dependent on tax returns? Would it save some money for me?

I would really appreciate if I get answers to these questions as I am really confused.

Thanks.

[AtlantaTaxExpert]

1) You MUST file by yourself on Form 1040NR or 1040NR-EZ. You do NOT have the option to file a joint return NOR can you claim your wife as a dependent.

2) Your wife is a non-resident alien, and thus is NOT required to have medical insurance. That being the case, she is NOT entitled to any tax credit for health insurance.

3) NEITHER you nor your wife can claim your child as a dependent, since you are BOTH non-resident aliens.

[jahirju30]

Thanks for you quick reply. 1. The point is clear now. 2. Though my wife is not REQUIRED to have medical insurance, she was found eligible and received tax credit for 2014 (from March to September). I applied for her at www.healthcare.gov, and submitted necessary documents including her I-20. After she was declared eligible we chose a medical insurance with a tax credit of about $170 per month. I am now confused that you said that as a non-resident alien, she is NOT eligible for tax credit, while the process of application at the Marketplace has the option to apply on the basis of I-20. I'd appreciate if you could clarify my confusion. 3. So, I am not eligible for any kind of tax rebate/redemption (or such thing) even though my child is an American citizen?Thanks for your patience with my queries.

[AtlantaTaxExpert]

2. It is a quandary. I believe that the marketplace made an error in giving your wife the credit. If you look on Form 1040, you see Line #61 (Health Care: individual responsibility), where the credit you cite can be claimed. However, there is no such line on either Form 1040NR or Form 1040NR-EZ. If your wife files, she MUST file Form 1040NR or 1040NR-EZ and thus cannot formally claim the credit. If she filed Form 1040, she would be filing a fraudulent return.

3. Yes, that is correct. I have several clients who cannot claim their children even though they are U.S. citizens due to their non-resident alien status.