Spouse exemption on 1040NR

spocket · Post by **spocket** » Sun Feb 04, 2007 9:06 am

Hi

Sorry to ask again, I thought I found the answer to my own question before, but now I am confused again. I live in Canada, work in USA and my wife lives and works in Canada.

Can I check box 7b on the 1040NR to claim the exemption for my spouse?

The instructions seems to say "yes" if she had no gross income for US tax purpose. Since she only worked in Canada, I guess she doesn't? Unless they consider world income..

Thanks in advance..

Here's the instruction:

[i]"Residents of Mexico or Canada can also claim a personal exemption for your spouse if your spouse had no gross income for U.S. tax purposes and cannot be claimed as a dependent on another tax return."[/i]

nelsona · Post by **nelsona** » Mon Feb 05, 2007 1:00 am

spocket · Post by **spocket** » Mon Feb 05, 2007 9:21 am

Thanks Nelson. This is great! this will yield me a good return since my employer was witholding based on a single exemption.

Will we have to apply for an ITIN for my wife then, if I claim her exemption?

For some reason, she's not too 'hot' about the idea.

spocket · Post by **spocket** » Mon Feb 05, 2007 12:37 pm

One more easy question (hopefully the last): Assuming the situation above for the federal return (1040NR, claiming 2 exemptions), Is this the correct way to file for Michigan on MI-1040:

+ "Married filing separately" (box 7c)
+ NR (box 8b)
+ 2 exemptions for box 9a ("# of exemptions you claimed on your federal return")

Just wanted ot make sure it was not incorrect to file MFS while claiming an exemption for my spouse.

nelsona · Post by **nelsona** » Mon Feb 05, 2007 1:49 pm

I wouldn't get too hung up on the WITHHOLDING forms, as they don't really mean anything in terms of your final TAX bill.

Regardless of how much or how little is withheld, you still have to file a tax return to figure what you ultimately owe.

I will say, that NR rates are usually the highest, so the more that is withheld now the bigger your refund will be.

spocket · Post by **spocket** » Mon Feb 05, 2007 2:31 pm

MI-1040 is not a witholding form.. That is the Michigan Tax Return declaration. Sorry if my request lacked of precision.

I want to make sure that I am filing in a coherent way for both FED and State returns, thus my precedent question.

thanks in advance.

nelsona · Post by **nelsona** » Mon Feb 05, 2007 4:51 pm

I was commenting on your preceding post.

I don't generally delve into state matters....