Many Indian taxpayers in the U.S. struggle with a critical filing choice: Should I file as “Married Filing Jointly (MFJ)” or “Married Filing Separately (MFS)” if my spouse still lives in India and has no U.S. income? Most CPAs overlook how MFJ can provide enormous tax benefits, but also carry risks if proper ITINs or elections aren’t made. Filing incorrectly can cost you thousands in missed refunds or penalties.
At Kewal Krishan & Co, we assist Indian taxpayers with cross-border family structures, helping optimize between MFJ and MFS and handling ITIN, Form 8962, Form W-7, and other required filings.
Key Tax Code Reference: IRC §6013
Under IRC §6013, a nonresident spouse can be treated as a U.S. resident if a proper election is made, allowing a couple to file jointly even if one spouse has no U.S. presence. This is extremely useful for Indians whose spouse:
- Lives in India full-time
- Has no U.S. visa or Social Security Number
- Has foreign income or no income at all
Who Is Eligible to File MFJ?
You may file MFJ if:
- You are married as of December 31, 2025
- Your spouse is alive and not divorced or legally separated
- You elect to treat the nonresident spouse as a U.S. resident (per IRC §6013(g) or §6013(h))
- You obtain or apply for an ITIN for your non-U.S. spouse using Form W-7
Comparison: MFJ vs. MFS (2025)
| Feature | MFJ | MFS |
|---|---|---|
| Standard Deduction | $29,200 | $14,600 |
| Tax Rates | Lower | Higher |
| Child Tax Credit | Eligible | Limited |
| Premium Tax Credit | Eligible | Not eligible |
| EITC | Eligible | Not eligible |
| Risk of foreign income disclosure | Higher | Lower |
Example: Arjun in New York
Arjun is an H-1B visa holder earning $120,000/year. His wife, Priya, lives in India with no income. He has a 3-year-old child in India.
Filing MFS:
- Arjun gets only $14,600 standard deduction
- No Child Tax Credit
- Cannot claim ACA Premium Tax Credit (Form 8962)
- Higher effective tax rate
Filing MFJ:
- Arjun gets $29,200 standard deduction
- Claims Child Tax Credit ($2,000)
- May qualify for higher refund
- Must disclose Priya’s (zero) income and apply for ITIN
Net Tax Savings = Over $4,000
IRS Forms Involved
| Form | Purpose |
|---|---|
| Form 1040 | Federal income tax return |
| Form W-7 | ITIN application for foreign spouse |
| Form 8962 | ACA premium tax credit |
| Form 1116 | Foreign Tax Credit (if spouse has foreign income) |
| IRC §6013(g) Election Letter | To treat nonresident spouse as U.S. tax resident |
Step-by-Step Guide to Filing MFJ with Indian Spouse
- Determine Eligibility
Confirm your spouse lives in India and has no U.S. SSN. You are married on Dec 31.
- File W-7 with ITIN Supporting Documents
Send Form W-7 to the IRS with:
- Certified copy of Indian passport
- Your 1040 tax return with MFJ
- Proper residency election letter under §6013(g)
- Attach Spouse Election Letter
Sample text:
“Pursuant to IRC §6013(g), we elect to treat the nonresident alien spouse as a resident for tax year 2025. Both spouses are signing this statement.”
- Mail the Complete Return to ITIN Unit
You cannot e-file the return. Mail the return to:
IRS ITIN Operation
P.O. Box 149342
Austin, TX 78714-9342
- Track ITIN and File Future Returns Electronically
Once the ITIN is issued, future MFJ returns can be e-filed.
Conclusion
Choosing between MFJ and MFS is critical if your spouse lives in India. MFJ often yields lower tax rates, higher refunds, and access to tax credits, but requires ITIN application, global income reporting, and proper documentation. Filing MFS may avoid disclosures but limits deductions.
Call to Action
Anshul Goyal, CPA EA FCA is a U.S.-licensed Certified Public Accountant and IRS Enrolled Agent. He assists Indian families with cross-border tax filing strategies, including MFJ/MFS optimization, ITIN processing, and tax credit maximization.
About Our CPA
Anshul Goyal is a cross-border tax expert serving Indian-origin taxpayers in the U.S. He handles MFJ filings with nonresident spouses, ITIN applications, and strategic tax positioning for families with Indian dependents.
Disclaimer
This article is for educational purposes only and does not constitute personalized tax advice. Consult a qualified professional to evaluate your specific tax filing position.
Top 5 FAQs
1. Can I file jointly if my wife is in India and has no SSN?
Yes, you can file MFJ by applying for an ITIN and attaching a §6013(g) election.
2. What if my Indian spouse has income?
You must report it on the joint return. You may be able to claim Foreign Tax Credit.
3. Do I need to disclose foreign assets of my spouse?
Yes, if you file MFJ, her foreign accounts count towards FBAR and FATCA thresholds.
4. Is filing MFS better if my spouse has high income in India?
Possibly. Filing MFS avoids reporting your spouse’s income and foreign accounts.
5. Can I e-file if I’m applying for an ITIN?
No. You must mail the return with W-7 and documents to the IRS ITIN unit.