Just married a Kentucky girl (who has been living in the UK for the last four years) and have realised that the IRS is the third party in this relationship. Got a handle on the 1040/2555. Quickly decided to avoid further form filling by not using ISAs in her name (a shame as I am a 40% taxpayer), she has minor income going into a non interest bearing account, and she is not party to any account with funds over $10,000. Four issues now remain:
I presume she will now file as married, filing seperately, and I am a non resident alien (never lived/worked in the US)?
If we get a new main residence in joint names (current one in my sole name) do I have to declare her 50% interest in this to the IRS, and will she be liable for US CGT on any gain on her share over $125,000 equivalent presuming property prices rise? In the UK there is no CGT on your main residence...
She has just started a stakeholder pension. As it is not a US approved scheme, do I declare her employer contributions as part of gross income on the 2555? She will still be way below the exemption threshold if so.
Since she started work I have filed her federal tax returns for the last two years, I think I should have filed Kentucky State returns as well - is this right?
Great website/posts/threads - keep up the good work everyone.
