TIN for my wife

We just moved to the US a few weeks ago. I am in the US on a H1B visa and my wife is on a H4. I have a SSN and my wife is not eligible for a SSN.

We went to the bank to open a joint saving account the other day and the bank wouldn't do it because my wife does not have a Tax ID Number. I think that I read somewhere that she can apply for a TIN when we file our taxes together next year (when I delare her as a dependent). Can she apply for a TIN earlier?

As a H1B, am I considered a US resident for tax purposes? I plan to establish non-residency status with CRA so I don't have to pay Canadian taxes.

Thanks

We went to the bank to open a joint saving account the other day and the bank wouldn't do it because my wife does not have a Tax ID Number. I think that I read somewhere that she can apply for a TIN when we file our taxes together next year (when I delare her as a dependent). Can she apply for a TIN earlier?

She needs to fill out this form and take it to the local IRS office: http://www.irs.gov/pub/irs-pdf/fw7.pdf

You can apply for an ITIN without concurrently filing a federal return in certain situations. I think she needs to get a letter from the bank stating that they need her to apply for an ITIN for their IRS reporting purposes. The form has more details about what is needed in these circumstances.

Can she apply for a TIN earlier?

Yes, because although it's not obvious she's making a tax treaty claim as non-resident aliens must file Form W-8BEN with the bank when they open an account and declare where they are resident.

So you can get an ITIN for this purpose as explained on the W-7, check box "a" and you don't have to file for it with a tax return.

Thanks for the replies. I am still confused...

I think I am a resident alien for tax purposes. Would it make my wife a "resident alien" for US tax purpose too? I thought the definition of resident alien is someone who spends more than 187 days in the US. If my wife check box a, will that impact our filing status later?

thanks

Not unless you want to be. If you want to be a resident of the US for tax purposes you have to file dual-status next year. As things stand at the moment you're both non-resident aliens. You haven't met the substantial presence test yet if you've only been there a few weeks.

Regardless, she still needs an ITIN even if you were resident for tax purposes, the only difference is which form she's putting it on, W-9 instead of W-8BEN.

However it's easier to get an ITIN (bizarre I know) if you're filing W-8BEN with the bank rather than W-9 because there's no requirement to file a tax return to get an ITIN if she's making a tax treaty claim.

So apply on W-7 on that basis, get the ITIN, then move your tax home if you want and file a W-9 with the bank at that point. Read the instructions for W-9 as there may be a simpler way to do it, and the IRS does have the power to make exceptions to the tax return filing rule to get an ITIN.

It does depend on the bank, the Patriot Act requires banks to have a "customer identification program", which can vary from bank to bank.

W-8BEN doesn't require a TIN although some banks want it because of the way their software works. I've actually had mixed experiences at branches of the same bank, some require it and some don't. I opened a CD once and they put down: 000-00-0000 and were quite happy to leave it that way until I gave it to them. Went to another branch a year later, exact same situation and they insisted on it.

Getting an ITIN to fill in W-8BEN is relatively easy so it's not worth the argument, imo.

If you're resident for tax purposes it is required though.