Married Filing Jointly

Hello everyone,

What is the amount of money my wife and I have to earn to file a tax return in the form of Married Filing Jointly?

From the IRS website it looks like $20,000 and above....Is this right?

Does this mean that if we have a couple of years where we did not make this amount jointly that we do not have to even file a return for those years???

Also if we file a return jointly does that mean every return in the future has to be completed as jointly from that point on?

Thanks,

Mike

 

Assuming you are a non-resident alien, your wife is required to file a US income tax return in any year when her income exceeds $3,900.

There are many reasons NOT to consider MFJ, the main one being that the income of the non-US citizen spouse must be included. The typically ends up with a higher tax liability than might otherwise be the case.

If the non-US citizen spouse has NO income from US sources (including interest or any other type of income) then the US citizen spouse can claim an exemption as part of the MFS (which is the way the return would be filed). This requires obtaining an ITIN for the non-citizen. Formerly you could just write "NRA Spouse" on the line that asks for the social security number, but the rules on that changed a while back.

Your wife's requirement to file a US return kicks in at any point where her income exceeds the MFS threshold, which was $3900 for 2013. Trying to claim that you made <$20K and would have filed a joint return, thereby eliminating the need to file won't cut it with the IRS. In any case, unless your wife makes megabucks, given that the UK tax rates are higher, it's doubtful that she would owe any US tax.

That is correct that if the total of your incomes combined did not exceed the filing threshold (the MFJ threshold is different every year so make sure to check the amount for past years and make sure you did not earn above that), then there is no need to file a tax return.

The exception to that rule would be if either of you were self employed. If that is the case, then the threshold drops significantly (to around $400).

If you are both US citizens, then likely filing jointly is the best route forward (your accountant can confirm once they know more details about your situation). However if one of you is not a US citizen, then it may be more beneficial to just file separately (even though the threshold will drop).

I hope this helps!