ANCPA Auditing is led by Ashraf Noureldin, a California licensed CPA. The firm prepares USA tax filings for people across the UAE and the GCC: USA citizens and green card holders, non-Americans with any USA income, active or passive, and anyone married to a USA citizen.
When your spouse needs an ITIN
Mainly when you choose a joint return with your non-American spouse. On a separate return the IRS lets you write "NRA" in place of your spouse's number, so no ITIN is needed.
Your three filing options
- Option A: married filing separately. The usual starting point. Your spouse needs no ITIN and none of your spouse's income goes on your return. The IRS warns that this status usually costs more tax than the others.
- Option B: a joint return. You both choose to be taxed as USA residents. Your spouse needs an ITIN, and both of you report your worldwide income for that year and every later year until the choice ends. The joint tax brackets are wider, so this can lower the tax when your spouse earns little.
- Option C: head of household. Open to you only if you have another qualifying person, such as your child living with you. Your spouse does not count. If you qualify, you are treated as unmarried for this status and the rates are lower than Option A. No ITIN is needed for your spouse.
How to apply
- Form W-7, attached to the front of your USA tax return, which is sent with it.
- Proof of identity and nationality. Usually the passport.
Without posting the original passport
The IRS accepts originals, or copies certified by the office that issued the document. It also allows:
- Certification at a USA embassy or consulate, where that service is offered. Contact the American Citizens Services section first.
- A Certifying Acceptance Agent, a person the IRS has approved to check the documents and hand them straight back. The IRS keeps a list on its website, and some are outside the USA.
How long it takes
The IRS says to allow 7 weeks, or 9 to 11 weeks if you apply from overseas or between 15 January and 30 April. Apply well before your return is due.
Questions to ask yourself
- Is my spouse neither a USA citizen nor a green card holder?
- Would a joint return lower our USA tax, once the spouse's worldwide income is counted?
- Do we have time for the ITIN before the return is due?
In short
- No ITIN is needed to file separately or as head of household.
- A joint return needs the ITIN and brings your spouse's worldwide income into USA tax, so it suits a spouse with little income.
- We work out the tax under each option before you choose.
About the author
Ashraf Noureldin is a USA CPA (California) and UAE Tax Agent with more than 25 years in accounting, audit and tax. He founded ANCPA Auditing L.L.C, an audit and tax firm in Emirates Towers, Dubai. USA returns are prepared and signed in Dubai and e-filed through our USA associates in Texas and California. For a question about your own case, email info@cpaauditing.ae, call +971 4 319 7316 or WhatsApp +971 56 620 0575.
This article is general information only. It is not tax, legal or financial advice for any person or company. Take advice on your own facts before you act.