I went through this exact situation two years ago when I got married to my husband who was still in the UK waiting for his green card. Here's what I learned from experience: You absolutely cannot e-file with "NRA" in the SSN field - every tax software I tried (TurboTax, H&R Block, FreeTaxUSA) rejected it immediately. The IRS e-filing system requires a valid 9-digit identifier. My recommendation is to go the ITIN route if you plan to file jointly in future years or if your spouse will be coming to the US soon. Yes, it takes 8-10 weeks to get the ITIN, but it's worth it for the convenience of e-filing. You'll need to submit Form W-7 along with your tax return and original or certified copies of your spouse's identification documents. If you need to file immediately and don't want to wait for an ITIN, paper filing with "NRA" written in the spouse SSN field is perfectly acceptable. I did this my first year and had no issues - just make sure to clearly write "NRA" and don't leave it blank. One tip: if you do decide to get an ITIN, consider using a Certified Acceptance Agent (CAA) who can verify your spouse's documents instead of mailing originals to the IRS. It's safer and often faster.

I just went through this exact situation last month! My husband is from Germany and we got married in December, so I had to figure out the MFS filing with a non-resident alien spouse for the first time. After reading all the conflicting advice online, I ended up calling the IRS directly (took forever to get through) and they confirmed that you cannot e-file with "NRA" in the SSN field. The electronic system will automatically reject it every single time. I decided to go ahead and apply for an ITIN for my husband using Form W-7. Even though he has no US income, I figured it would be worth it for future years when he moves here and we want to file jointly. I used a Certified Acceptance Agent at a local H&R Block office - cost me $75 but it was so much better than mailing his original German passport internationally. For this year, I ended up paper filing my MFS return with "NRA" clearly written in the spouse SSN field. The return was processed without any issues and I got my refund about 6 weeks later. The ITIN took about 10 weeks to arrive, so next year I'll be able to e-file no problem. My advice: if your spouse will be coming to the US within the next year or two, definitely get the ITIN. It's a one-time hassle that makes everything easier going forward. If she's going to be abroad for several more years, paper filing with "NRA" works just fine and saves you the ITIN application process.

One thing to keep in mind is that you can't actually "choose" which mortgage to claim - if both properties qualify as your primary residence and second home, you're entitled to deduct the interest on both mortgages up to the applicable limits. You can't selectively ignore one to maximize the other. What you CAN do is make sure you're maximizing the deductible portions within the rules. Since your first mortgage ($550k) is grandfathered under the old $1M limit, you can deduct all the interest on that. For your new $1.3M mortgage, you'd be able to deduct interest on $750k of that loan amount. The key is making sure your total itemized deductions (including both mortgage interests, state taxes, charitable donations, etc.) exceed the standard deduction to make itemizing worthwhile. With mortgages totaling $1.85M, you'll likely have substantial interest payments that would justify itemizing.

Just to add one important consideration that hasn't been mentioned yet - make sure you understand the order of payments if you end up with a mortgage over the deduction limit. For your new $1.3M mortgage where only $750k qualifies for deductions, the IRS treats the deductible portion as being paid first throughout the year. So if you pay $91,000 in interest on that 7% mortgage ($1.3M × 7%), you'd be able to deduct interest on the first $750k of principal, which would be about $52,500 ($750k × 7%). The remaining $38,500 in interest payments wouldn't be deductible. Also, double-check that both properties will actually qualify as residences under IRS rules. The second home needs to have basic living accommodations (sleeping, cooking, and toilet facilities) and you need to use it personally for more than 14 days per year or 10% of the days it's rented out, whichever is greater. Since you mentioned using it 3 months per year, you should be fine on that front.

Been through this twice unfortunately. First time I didn't bring all the right documents and had to come back. Make sure you have: original Social Security card (not a copy!), valid government-issued photo ID, and the CP01H notice they sent you. Also check if your local office does appointments - some are appointment-only now. The verification itself is quick but yeah, the wait times can be brutal. Hang in there!

I just went through this process last month and can share some tips! The wait time really depends on which office you go to and what time you arrive. I went to the one in downtown and waited about 3 hours, but my friend went to a suburban location and was done in under an hour. Definitely schedule an appointment if possible - some offices are by appointment only now. Also, bring snacks and entertainment because you'll be there a while. The actual verification process is super quick (maybe 10 minutes), they just check your documents and ask you to confirm some info. Once it's done, they give you a confirmation letter - keep that safe! My refund processed about 6 weeks later. You've got this! 💪

Hey Austin, I completely understand your stress about this situation. You're smart to be thinking about filing separately - that's definitely the safer route given your wife's tax history. One thing I'd add to the great advice already given: even if you file married filing separately this year, you and your wife can still work together to tackle her unfiled returns without it affecting your current tax liability. The IRS treats each spouse's tax obligations separately when you file MFS, so her past issues won't impact your clean record. From a practical standpoint, I'd suggest having an honest conversation with your wife about getting current with her taxes. The anxiety and uncertainty of having unfiled returns hanging over your heads will only get worse with time. Plus, as others mentioned, she might actually be owed refunds for some of those years. If she's willing to start the process, beginning with just the most recent year or two can make it feel less overwhelming. The IRS is generally more interested in getting people back into compliance than punishing them, especially when there's no indication of intentional fraud. Good luck with whatever you decide!

Austin, I feel for you being caught in this tough spot between protecting yourself financially and supporting your wife. One thing that might help ease into this conversation is focusing on the potential positives - as others mentioned, she could actually be owed refunds for some of those years, especially if she had taxes withheld from paychecks. You might also consider approaching it from the angle of financial planning for your future together. Having this uncertainty hanging over your marriage makes it harder to make long-term financial decisions with confidence. Framing it as "let's clear this up so we can plan our future together" might feel less threatening than focusing on the past mistakes. If she's really resistant to dealing with it all at once, maybe suggest just getting a wage and income transcript for the most recent year to see what her situation actually looks like? Sometimes the unknown feels scarier than the reality. The IRS website makes it pretty easy to request these transcripts online, and it would give you both concrete information to work with rather than just worrying about what might be wrong. Whatever approach you take, your instinct to file separately this year is definitely the right call to protect yourself while you figure out the bigger picture.

Has anyone had experience with how state taxes work with dual-status federal returns? I'm in a similar situation but also worried about state filing requirements. California seems particularly aggressive about taxing people with any connection to the state.

I went through a very similar situation last year and can confirm you'll need to file as dual-status. The IRS is pretty strict about this - if you change residency status during the tax year, dual-status filing is mandatory regardless of how simple your income situation might seem. For your capital gains, since you sold the stocks while physically present in the US (before May 2025), they'll be reported on the Form 1040 portion of your return, not the 1040NR. This is because the US has taxing rights on capital gains realized while you were a US resident for tax purposes. One thing to watch out for - make sure you're calculating your exact residency termination date correctly using the substantial presence test. It might not be exactly when you physically left in May, depending on your presence history in prior years. The IRS has specific rules about this that can affect which form certain income items go on. I ended up hiring a CPA who specializes in international tax because the dual-status rules are genuinely complex, but I know that's not always budget-friendly. If you do go the DIY route, make sure to attach a statement to your return explaining the dual-status filing and clearly marking which periods each form covers.