Filing “Married Filing Jointly” is the most tax-efficient strategy for H1B families, but it isn’t the default option for everyone. If your H4 spouse arrived mid-year or does not have an SSN, the IRS requires a proactive election and a specific application process.
For 2026, the One Big Beautiful Bill (OBBB) has made the joint filing status even more attractive by doubling the standard deduction to $31,500 for married couples.
1. The Residency Hurdle (Section 6013(g))
By default, if one spouse is a nonresident alien at the beginning of the year, you cannot file jointly. However, the IRS allows a once-in-a-lifetime election under Section 6013(g) to treat a nonresident spouse as a U.S. resident for the entire year.
- The Benefit: You jump from a $15,750 deduction (Separate) to a $31,500 deduction (Joint).
- The Requirement: You must attach a signed statement to your return declaring the election.
- The Trade-off: Both spouses must report their worldwide income. If your H4 spouse has rental income or interest in India, it must now be reported on your U.S. 1040.
2. Applying for an ITIN (Form W-7)
Since most H4 spouses are not eligible for a Social Security Number (unless they have an EAD), they must have an Individual Taxpayer Identification Number (ITIN) to be included on a joint return.
- The Process: You must file Form W-7 at the same time you file your 2025 tax return.
- Documentation: You need to provide proof of foreign status and identity (usually a certified copy of a passport).
- The “Wait” Period: It can take 7-11 weeks for the IRS to issue an ITIN. Your tax return will not be processed until the ITIN is assigned.
3. Claiming the New 2026 Joint Credits
Filing jointly unlocks several credits that are often unavailable to those who file separately:
- Child and Dependent Care Credit: If you pay for childcare while you work and your spouse is a full-time student or looking for work, you can claim up to $6,000 in expenses.
- Education Credits: Credits like the Lifetime Learning Credit are generally only available to joint filers.
- Overtime Deduction: Under the OBBB, the $12,500 overtime deduction is potentially doubled to $25,000 for married couples if both spouses have qualifying overtime income (rare for H4, but relevant if the spouse has an EAD).
4. Avoiding the “Separate” Penalty
If you choose to file Married Filing Separately because it seems easier:
- Your tax brackets will be much higher.
- You lose the ability to take the Student Loan Interest Deduction.
- You cannot claim the Credit for the Elderly or the Disabled.
How KKCA Secures Your Status
The 6013(g) election is a powerful tool, but it is permanent until revoked. At KKCA, we help you decide if it’s the right move:
- Election Modeling: We calculate if the tax savings in the U.S. outweigh the tax you’ll have to pay on your spouse’s Indian assets.
- CAA Services: As Certified Acceptance Agents, we verify your spouse’s passport in-house so you don’t have to mail their original passport to the IRS.
- Global Reporting: We ensure your H4 spouse’s Indian bank accounts are correctly added to your FBAR and FATCA disclosures to keep your immigration record clean.
Call to Action
Looking for personalized tax services about your specific tax situation, please contact us. We are here to help you with your specific tax matters.
Frequently Asked Questions (FAQ)
Q: Do I have to file an ITIN application every year? A: No. Once your spouse has an ITIN, they use it indefinitely, though it can expire if not used on a tax return for three consecutive years.
Q: Can we file jointly if my spouse is still in India? A: Yes, provided you are a U.S. tax resident and you make the 6013(g) election to treat them as a resident.
Q: What if my spouse gets an SSN later? A: If your spouse receives an EAD and an SSN, you stop using the ITIN and must notify the IRS to merge the records under the new SSN.
Q: Does filing jointly make my spouse liable for my taxes? A: Yes. Joint filing creates “joint and several liability,” meaning both spouses are legally responsible for the entire tax bill and any penalties.
Disclaimer
This blog is intended for informational purposes only and does not constitute legal or tax advice. Please consult a qualified U.S. CPA or tax attorney for guidance specific to your situation.