Immigration status at tax-filing time

Dear Tax Talk,
I am a resident alien and my wife is a nonresident alien. I understand that you can choose for tax purposes to treat your nonresident spouse as a resident alien. How exactly is this done? And is it straightforward? Kind regards.
-- Ronan

Dear Ronan,
Since a married couple filing a joint return enjoys lower tax rates than married couples filing separately, the election to treat your spouse as a resident in certain instances could be beneficial.

By making the election, you are agreeing to pay tax in the United States on your spouse's income wherever earned, less, of course, any allowed credit for foreign taxes. Generally, the election will help you if your nonresident spouse has little or no income. Alternatively, if the non-resident spouse is a multimillionaire, then perhaps you wouldn't want to include her income on your U.S. return. I've seen the latter situation often in South Florida, where the wife comes to live in this country for security concerns, but the husband remains substantially abroad to run his business.

If you feel it is beneficial to file a joint return, then the procedure is rather straightforward. It can be made on an original return and it also can be made for the prior year's taxes on an amended return. Page 10 of Internal Revenue Service Publication 519, U.S. Tax Guide for Aliens, explains how to make the election.

Attach a statement, signed by both spouses, to your joint return for the first tax year for which the choice applies. It should contain the following information:

1) A declaration that one spouse was a nonresident alien and the other spouse a U.S. citizen or resident alien on the last day of your tax year, and that you choose to be treated as U.S. residents for the entire tax year.
2) The name, address, and identification number of each spouse. (If one spouse died, include the name and address of the person making the choice for the deceased spouse.)

Revoking the choice in a later year is possible and is explained in the same chapter of the publication.

Your nonresident spouse requires a Social Security number or, if not eligible to receive one, an Individual Tax Identification Number. An ITIN is obtained by completing Form W-7 and should be requested as early as possible to avoid delays in your filing.