Married filing separately or Single?

Hello!
I am about to file my U.S. taxes as a married woman for the first time. But I am stumbling on the question in regards to my filing status:

My British husband and I got married in September 2010. After some research I am not happy with the filing status I am being given. According to the IRS website I should file "married filing separately", which is totally unfair because I cannot claim the interest I pay on my student loans and will be taxed more. My issue lies in that my husband and I have such a unique situation. We are legally married but we don't live together, he does not live in the country, is not a US citizen or resident alien, he will not be filing a US tax return, and we do not currently share any expenses. And I was single for about 90% of the year.  I am , for a lack of a better category, more single than married until I am officially living in the UK with him. So I just want to know whether or not "married filing single" truly is my filing status.

If anyone can shed some light  I would truly appreciate it.

Thanks so much,
Maria

You can't be more single than married. You are married and have to file as such. You may not be happy but thems the rules.

Just sent you a PM with the info my accountant gave me.

Hello Maria,

As long as you are legally married, you have the choice between filing as 'married filing jointly' and 'married filing separately'. You cannot have filing status 'single'.  You will find all the steps for handling your situation here: http://www.taxesforexpats.com/expat-tax-advice/foreign-spouse.html

It possible that choosing 'married filing jointly' and including your husband's income in your tax return will put you at a disadvantage in your situation, as opposed to filing as 'married filing separately'. On the other hand it may turn out that 'married filing jointly' is a better choice for you because married filing separately disqualifies you for many deductions available to married filing jointly, and the tax bracket is higher, too.

There is no cookie-cut answer - you have to run both scenarios and choose whichever filing status between the two is advantageous given your circumstances. Keep in mind that you can change your status in the future by attaching a declaration statement to your tax return.

While the main "blame" for this rests with Congress who make the rules, the previous reply is perhaps open to misinterpretation.

A US person married to a non-resident alien can only elect to file jointly if both spouses jointly elect by attaching a formal signed election (IRS code section 6013(g)).

The election once made carries on for all future years, but can be revoked by either spouse.

Once revoked the election can never be made again with the same non-resident alien spouse.

It is not an annual choice as the previous reply perhaps suggests.

In practice many folks arrange for the non-resident alien to own UK houses, PFICs and other items treated badly under the US code.  Joint filing requires complete disclosure of the non-resident alien's foreign financial assets and income.  It is rare that many here in the UK make that election simply because the non-resident alien spouse typically wants to keep away from IRS reporting.

With all due respect, I don't think that the phrase 'can be changed in the future' carries any implication whatsoever that said change can be performed on an annual basis.

Now - having cleared that up, I would like to give guya credit for raising an important point. Namely, that the choice of filing jointly or separately should be considered on a long-term basis. Even if you may realize a certain benefit *this* year by filing jointly, the exposure that your spouse will face to the IRS may not be worth it in the long haul. Be mindful of the various new measures passed by US Congress that require US taxpayers to report financial assets abroad: http://www.taxesforexpats.com/expat-tax-advice/offshore-tax-fbar.html

On the other hand (just trying to give you a full picture), if you plan to repatriate to the US and have your spouse apply for US citizenship, filing jointly will be looked at favourably by the immigration authorities.

I thought you could also file as "Head of Household" if you pay more than half of the household costs (which you clearly do if you don't live together) and thus still claim your Student Loans?

Something about being "classed as single" if you're spouse is a non-resident alien... Or am I making it up? LOL