According to TurboTax he needs an ITIN.
https://ttlc.intuit.com/questions/2800291-i-am-filing-as-married-filing-separately-since-my-spouse-is-nra-will-i-qualify-for-an-exemption-for-my-spouse
HAHAHA I was coming back to edit my post but will not let me now... I was incorrect about the 50% thing (I was looking at claiming a dependent earlier which I can not claim, Sorry)
Straight out of the text book...
Nonresident Alien Spouse
If your spouse is a nonresident alien, he or she must have either a SSN or an ITIN if:
1. You file a joint return,
2. You file a separate return and claim an exemption for your spouse,or
3. Your spouse is filing a separate return
Married Filing Jointly
1. You were married at the end of 2013, even if you did not live with your spouse at the end of 2013
2. Your spouse died in 2013 and you did not remarry in 2013
3. You were married at the end of 2013 and your spouse died in 2014 before filing a 2013 return
A married couple filing jointly report their combined income and deduct their combined allowable expenses on one return. They can file a joint return even if only one had income or if they did not live together all year. However, both person must sign the return.
Nonresident aliens and dual status aliens
Generally, a married couple cannot file a joint return if either spouse is a nonresident alien at any time during the year. However, if you were a nonresident alien or a dual-status alien and were married to a US citizen or resident alien at the end of 2013, you can elect to be treated as a resident alien and file a joint return. See Pub. 519 for details
Married filling separately
Be sure to enter your spouse's SSN or ITIN on Form 1040. If your spouse does not have and is not required to have a SSN or ITIN, enter "NRA"
There is a bunch of other stuff also
But really on the W4 it doesn't matter what you put...
You are considered a nonresident alien (NRA) unless you meet one of the two tests described next for a resident alien (RA).
You are a RA of the United States for tax purposes if you meet either the green card test or the substantial presence test. Note: this does not mean you are a RA for the entire tax year. In the first tax year in question, unless you established presence on the first day of the year, you would be considered a dual-status alien; RA and NRA for the time before you established presence in the U.S.
Even if you do not meet either of these tests and are considered a NRA, you may be able to choose to be treated as a U.S. resident for tax purposes. Most people will choose to go this route with their spouse because it reduces tax liability when electing to file a joint return.
You have 3 Options for filing your tax return via mail (you cannot e-File):
1. NRA spouse + Filing Separately
You can file a paper return via mail as Married Filing Separately (MFS) and write "NRA" in the SSN/ITIN field for the NRA spouse. You do not need to report anything for your NRA spouse since you are filing separately. This option allows you to file sooner and then later amend to MFJ. Generally speaking, MFS is the least favorable filing status.
SSN/ITIN not needed.
You can also file Married Filing Separately (MFS) AND claim an exemption for your NRA spouse ONLY IF the NRA spouse has no U.S. source income. Although MFS is generally the least favorable filing status, this option at least allows you to claim the spousal exemption.
SSN/ITIN is needed.
3. Dual-Status/NRA spouse + Filing Jointly
You can choose to treat your dual-status/NRA spouse as a RA for tax purposes for the entire tax year in question. This option allows you to file a joint return (MFJ) and apply all eligible deductions and credits. You would be required to report BOTH spouse's worldwide income. A special election statement needs to be attached to your return indicating this choice. See the following IRS link for how to write the election statement: http://1.usa.gov/1Sw3S7A
SSN/ITIN is needed.
The question of what choice to make depends on which method produces less tax. Generally speaking, MFJ where foreign income is present (or not), should compute to be the most favorable option. With foreign income present, you can apply the more common foreign earned income (FEI) exclusion or foreign earned income (FEI) tax credit so that you do not pay tax twice on the foreign income. (The 2015 FEI exclusion is up to $100,800.)
Re: ITIN application
You may be able to avoid having to send in the passport for your foreign spouse but please read the requirements for the Identity/Foreign Status documents. You may be able to send in a certified copy of the passport but, again, double check. Also, keep in mind, an ITIN application takes approximately 7 weeks to process PLUS another couple weeks to process the tax return.
See this link for the instructions on the W-7 and ID requirements: http://1.usa.gov/1OZHelw
See this link for general info on the W-7 application process: http://1.usa.gov/1NL3CLj
I hope this helps most of you questioning how to file your first year tax return with a dual-status/nonresident spouse.
Singidudum reacted to Suss&Camm in Can I claim my spouse as an exemption if he does not have an ITIN or SSN and my filing status is Married filing separately??