Hi Bob
Let's discuss your wife first of all. You can elect in 2002 (first year that you are married) to file a joint return with your wife. This election will allow both of you to be treated as residents for the entire year. To do this she will need a SSN or an ITIN. You can apply for this by filing Form W-7. If you do make this election, in subsequent years, you and your spouse must file as residents, but can file joint or separate return.
What you need to consider is whether making this election will give you enough tax benefit to consider it as opposed to filing a "married filing separate" return going forward until such time as your wife either resides in the US or obtains a green card. Does she work?
In 2002, regardless of what you will decide to do in terms of your wife, you need to file 2555 and 1116 as well as your normal 1040, and the relevant schedules. The PPT test applies to the first 330 days after the start of your assignment (May 2002). Therefore you can aount the 2003 days in working out your qualifying days.
When working in the UK, you will not pay tax twice (to US and UK government) as you can claim foreign tax credit on your US return for UK taxes paid (Form 1116). So, no need to worry on that score.
I hope this helps. Let me know if you need further explanation on any subject or need help in completing your return.
Helen
HT TAX
h.tanhaie@ntlworld.com
