File for Tax Extension and Wait for SSN or File for ITIN

[Very_44_EP 21]

Due to SSA screw-up, my wife was recently rejected for her SSN.  But, we filed for the AOS and EAD in October (Biometrics completed in Late November) and requested a SSN through those forms as well.  So, hopefully that will come through in May/June (according to VisaJourney projections).  So, would it be best to file for an extension and wait for the SSN via the EAD/AOS; or just go ahead and file for the ITIN with the return prior to April?  My instinct is to file for the extension, but I am afraid I am missing a downside somewhere.  I (over) withheld as a single for most of the year, but had a lot of capital gains with no withholding, so I am not certain if I will owe or get money from the IRS.

[Wuozopo 4,293]

@Very_44_EP

Do your taxes and figure out if you owe or get a refund. Those capital gains kill us some years. Surprise! You earned $38k extra income.😳
 

If you file for the ITIN, you can probably be ready to file in February. You prepare everything and go to an IRS office that will certify her ID (passport) and they send it in to be processed. You may wait months for them to process. It all depends on covid, Omicron, if they’re short staffed, and any number of things or variants  we haven’t even thought about yet. But if you have a refund coming you have at least filed. Waiting on a SSN that may take longer than you think (*same reasons mentioned above) could hold you up and the ITIN refund would arrive before you even filed with the SSN. Another advantage of ITIN is— what if the SSN doesn’t get here before extension runs out? At least you have filed and will not face that hassle of re-doing to file Married Filing Separately if you go with ITIN.
 

 If you owe tax, then you’re going to have to pay that amount with your extension by April 15 so no rush to file in Feb in anticipation of a big refund you need desperately. The advantage of extension and SSN is you don’t have to go to an IRS office in person. It can all be done from your computer on TurboTax if the SSN is issued timely.  If you pay somebody to do your taxes, ask what they charge extra to file the extension. 

It’s a real toss up mate.