Tax questions

Hello Helen
I moved to the UK in April of 2003 (US citizen). I married my English husband in May. I worked briefly for a UK company and earned very little during that time. I have two questions for you:
Do I have to claim my UK income on my US tax returns? (Under 2500.00 pounds)
Also, from what I gather, I have three filing options:
Married filing jointly
Married filing separately
Head of Household
Other than the obvious, meaning more $ returned to me, is there any benefit of going through the hassle of obtaining an ITIN for my spouse to file Married/joint? We will be moving back to the states in May 2004 and wondered if there is any other invisible benefit?
Thanks in advance for your help!

The answer to your first question is Yes. You will need to report your UK income on your US return. But remember to claim the exclusion and foreign tax credit also.

Also, note that you will have HOH as one of your options if you had a child / children who lived with you.

MFJ tax rates are more beneficial than MFS, and also you get a higher standard deduction, and personal exemption. However it may not make sense to file as MFJ if this will not impact your bottom line tax liability. I cannot comment on this as I do not have the figures in question.

Helen

Also, note that you will have HOH as one of your options if you had a child / children who lived with you.

Okay - that's interesting!  Can I file Married filing Separately AND claim Head of Household (moved over here with my 2 kids who I've obviously been claiming in the past)?

 Can I file Married filing Separately AND claim Head of Household (moved over here with my 2 kids who I've obviously been claiming in the past)?

Good question

You can either file MFS or HOH. You cannot do both. And you can only file as HOH if you have qualifying children living with you.

Helen