It’s not necessary who have to file Married Filing Jointly(MFJ.) ONLY. You can also file as Married Filing Separately (MFS). However, we have few occasions with ITIN rejection for MFS status from 2018 as there are no tax exemptions benefits with MFS status since the 2018 tax year.

Reasons many of our clients choose to file Married Filing Jointly (MFJ) from 2018 tax year onwards is listed below:

pros
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a) From 2018, the tax rules changed with no personal exemption of $4,050 available for the taxpayer or the spouse (The personal exemption was available until 2017 tax year), so by filing Married Filing Separately(MFS) or Single your final tax due on the 1040 return would be same.

b) From 2018, with new tax rules, the standard deductions for the Married Filing jointly (MFJ) increased from $12,700 to $24,000, giving an additional deduction of $11,300 from your gross income, resulting in a reduction in taxes due or increase in refund on computation.

c) Married Filing Jointly (MFJ) status is also beneficial to foreign nationals spouse who has no income in the USA or a foreign country. Even if the foreign national spouse is working outside of the USA, then he/she is eligible to claim foreign earned income exclusion of $107,600 per person [For 2020 tax year] and eligible to claim Foreign tax credits (FTC) for taxes paid in a foreign country.

Cons
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Married Filing Jointly (MFJ) requires a joint election filing of IRC section 6013(g) to be elected, treating a nonresident alien spouse as US resident alien and subject to worldwide income reporting and Foreign Bank Account Reporting. The 6013(g) is a revocable election, so if the foreign national spouse does not wish to file 1040 US tax returns jointly in future tax years, he or she can revoke the election and opt-out of the US tax system for any particular tax year or future tax years.

Your CPA with US expatriate tax and international tax experience should be in a position to determine the best filing status option based on the source of income and having the numbers run on tax software.

Kindly note, For the first year of US tax filing with MFS or MFJ filing status along with spouse ITIN application, you cannot file electronically via turbo tax or any US tax software; the 1040 tax return filing and Form W7 will be sent to the IRS ITIN office via Postal filing ONLY (As far as you have postal proof of mailing on or before the due date or extended due date) it’s considered the tax return was filed on time. If the tax return is on Zero taxes due or refund position, you need not worry about the tax filing deadline date.

For the first year of the US Citizen application ITIN application process, you cannot e-file via turbo tax or any other US tax software. So The 1040 tax return (with MFJ or MFS filing status) with your spouse’s name on the tax return and on the SSN column, write Form W7 Enclosed. Next step, the 1040 tax return and Form W7 with all certified passport copy by CAA, by the CAA., taxpayer, or the CPA to the ITIN operation department, wherein the ITIN (Tax ID) to be allocated to your foreign national spouse and also the 1040 tax return to be processed

Please note, if you are legally married as of 31st December, then you cannot file the tax return filing status is Single. Your filing status on 1040 should be MFS or MFJ. Suppose you already filed the tax return as single (electronically just to meet the tax filing deadline date). In that case, we need to amend a tax return (prepare 1040X) with MFS or MFS status and paper file the 1040X tax return with Form W7 ITIN application.

If the tax return was processed as filed previously via postal paper filing or with old ITIN and rejected/notice received from IRS (for ITIN not valid/renewed on time). A new ITIN application with 1040 tax return ” WRITE COPY ONLY FOR FORM W7 DO NOT PROCESS AGAIN” on top of the 1040 tax return, so IRS knows the 1040 tax return is sent only for the ITIN supporting document.

Yes, Sending the Signed 1040 US tax return with Married Filing Jointly(MFJ) with both signatures or Married Filing Separately (MFS) filing with US citizen/resident taxpayers’ wet signature and with the Form W7 (with passport certification) is mandatory. If not, the ITIN application will get rejected

You have two options:

Option 1 – ONLY ITIN SERVICE FROM OUR TEAM
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Your CPA can prepare the 1040 tax return with ITIN Applied for box checked on US tax software.

If self-prepared via Turbo tax, you can (generate a 1040 tax return PDF, with nine digits number input for your spouse SSN, for example, 123-45-6789 or 999-99-9999 for the ITIN applicant)

When your 1040 tax return is ready, Our team can assist with ITIN application completion and help to mail the 1040 tax return to the IRS along with the ITIN application.

Option 2 – ITIN AND TAX RETURN SERVICE FROM OUR TEAM
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If your CPA has not prepared the 1040/1040X tax return, we can assist with the preparation ( additional fee for the US Federal and State tax return applies based on the complexity of work involved).

The taxpayer and the spouse need to sign on the 1040 tax return original ink (electronic signature not acceptable by IRS).

Our team can assist with ITIN application completion and help mail 1040/1040X tax returns to the IRS along with the ITIN application.