Also, when both spouses are renewing their ITIN at the same time and filling out wt form one will have to choise,
U.S. resident alien (based on days present in the United States) filing a U.S. federal tax return
and for the other w7 form will be an,
spouse of U.S. citizen/resident alien....
This is an excerpt from I7 instruction: "Applying for an ITIN for the first time. If you’ve never had an
ITIN before and are submitting an application for a new ITIN,
include the following in your application package.
1. Your completed Form W-7.
Note. If you submit a Form W-7, all future ITIN notices and
correspondence that you receive will be in English. If you prefer
to receive them in Spanish, submit Form W-7(SP).
2. Your original tax return(s) for which the ITIN is needed.
Attach Form W-7 to the front of your tax return. If you’re applying
for more than one ITIN for the same tax return (such as for a
spouse or dependent(s)), attach all Forms W-7 to the same tax
return. Leave the area of the SSN blank on the tax return for
each person who is applying for an ITIN. After your Form W-7
has been processed, the IRS will assign an ITIN to the return
and process the return.
There are exceptions to the requirement to include a
U.S. federal tax return. If you claim one of these
exceptions, you must submit the documentation
required instead of a tax return. See Exceptions Tables, later."
Here is the link, so you can answer the rest of your questions.