How to Apply for an ITIN for Your Spouse

When you file your taxes and want your spouse to get an ITIN, you can include a completed Form W-7 with your joint return. Include a copy of your spouse’s passport or other appropriate identity document. Processing a Form W-7 takes 7 weeks, and during tax season, it takes 9-11 weeks. Expect it to take longer if you mail your package outside the U.S. Filing Form W-7 is always free. However, you may have to pay to get a copy of your spouse’s passport or other identity document.

An ITIN allows your spouse to obtain a Social Security Number and be included on your joint return. This also allows you to claim the higher standard deduction. We have assisted many founders and their spouses with this process. Only a few parts of the process confuse people. This is the part of the process that most people find confusing.

Who Needs an ITIN for a Spouse

A U.S. citizen or resident cannot claim their foreign spouse who does not have a Social Security Number as a dependent. Also, if you want to file your taxes as married filing jointly, your foreign spouse needs a Tax Identification Number (TIN) if they do not have a Social Security Number. If your foreign spouse does not have a Social Security Number or TIN, then they are eligible to receive an Individual Taxpayer Identification Number (ITIN).

You may not need to obtain an ITIN in married filing separately cases where only one spouse is a nonresident alien. Married couples often owe less in taxes when they file using the joint return. There are considerable differences between the standard deductions for joint and separate returns. These differences result in a taxpayer seeking an ITIN.

What You Actually Need to File

You must provide the IRS with a completed Form W-7 and supporting documents. Typically, you submit these documents to the IRS along with your income tax return. As mentioned previously, the IRS has to process the ITIN application before it can process your income tax return. Therefore, you must submit everything to the IRS via mail.

The IRS accepts several forms of identification and proof of foreign status. A foreign passport serves both purposes. In the absence of a foreign passport, you may provide a foreign birth certificate along with a foreign identification card. Both of these documents must be current. A foreign identification card must contain a picture of your spouse.

You may find additional information on ITINs here.

There are three ways to submit your documents:

Mail: You can mail the original documents or IRS-certified copies to the IRS address in Austin. This is the most common route and the one the IRS prefers most. However, mailed passports have a way of “losing” themselves.

In-Person: You can take the documents to a Taxpayer Assistance Center (TAC) in the U.S. The TAC reviews the documents and gives them back to you.

Acceptance Agent: You can ask a Certifying Acceptance Agent (CAA) to review copies of your documents. The original documents remain in your possession.

Cost Breakdown

The application is free. What you pay for is risk reduction and time savings, whether that’s a CAA, a courier, or a certified copy from a foreign government office.

Step-by-Step Filing Process

1. Make sure your spouse actually needs this. Most of the time, if your spouse has no reported income in the U.S. and is not claimed on any returns, you can file as MFS.
2. Start your joint return first. The W-7 is usually submitted with a complete return, and an unsupported return will not be accepted.
3. Complete W-7. If your spouse is a U.S. citizen or U.S. resident and you file a joint return with that spouse, the reason code is in the box for U.S. citizen or U.S. resident Spouse. The general box for Non-resident citizens should not be used.
4. Obtain ID documents. A Passport is the best ID document; however, if a Passport is not available, a combination of ID documents from the IRS-provided list is required, and at least one document must include a photo.
5. Decide how the documents will be delivered. The documents can be sent by mail or by Diplomatic or Apostille Courier (CAA). Send the originals only if you use a CAA.
6. Submit the joint return and the W-7. The W-7 must be submitted with the tax return to which it pertains. The W-7 will be processed with the tax return to which it pertains.
7. Expect to receive a notification regarding the W-7 about 7 weeks after the return is filed (within peak processing times of 9 to 11 weeks, or 13 to 14 weeks from mid-January to April). The W-7 may be granted after the return is processed.
8. The W-7 is valid for 3 years from the date it is granted. After the W-7 is granted, you may file returns electronically. Only the first return filed after the W-7 is granted need not be submitted on paper.

Common Mistakes We See

It is thought that if “the spouse does not have an SSN,” then the return must be filed jointly. Separate returns may be filed if it is a voluntary decision by the taxpayer and spouse. The taxpayer may want to consider whether joint filing is in the best interest of the taxpayer and spouse.

Several things happen when the W-7 is filed without the tax return. For example, in the absence of exceptions (e.g., a claim for a treaty benefit), the IRS will reject or delay processing the W-7. The IRS must have a U.S. income tax return to process the claim.

Many filers use an expiring passport to substantiate their identity for their tax return. A passport that is about to expire can be valid for months or years, and the IRS will not extend the courtesy of processing it for tax return purposes.

During the tax filing season, the IRS has a backlog of documents to process. Documents mailed without CATrack Receipts during the peak season are at higher risk of being lost.

When more than one box on the W-7 could apply to a situation, filers may select the wrong reason code.

A common source of confusion for non-U.S. residents is that they cannot use their Individual Taxpayer Identification Number (ITIN) to work in the U.S. or for immigration purposes. Also, the ITIN does not allow a non-U.S. resident to receive Social Security benefits.

How Long Does It Actually Take?

Generally, plans should allow 45 to 50 business days for the IRS to process a complete, correct case. During the tax season, these case processing times increase and may require between 75 and 85 business days. Some case participants have reported processing times of over 100 business days during a busy tax season. International mail transmissions should also be considered when determining case processing times. A buffer should also be added to account for case processing times and the various deadlines.

Generally, an error or omission is dealt with by the IRS sending a communication to the applicant or case participant. This communication may set a deadline for the applicant to respond to the IRS; however, the applicant may not have control over the case process once the IRS sends the communication. A complete package to the IRS is the best way to ensure control of the case process.

FAQs: Apply for ITIN for Spouse

If you have questions about setting up a US LLC as a non-resident, contact EasyFiling to discuss your specific situation. We can provide information on the general process and the forms required.