From what I have read he would file as married filing separately and where it asks for my social security number he would put NRA? Is this the same for the FBAR? Should we apply for an ITIN or is this more hassle than its worth?
I have just been reading a little about Schedule B, part I regarding declaring interest on the account. I have a savings account in my name only which i assume we don't have to declare? The interest on our joint account amounts to something ridiculous like 10p per month, so do we need to add this up and put this in part I.
NRA will do fine for the 1040. For the FBAR, the instructions say “The filer may leave blank items for which no information is available”. Imho, NRA would be OK as well. Others with more knowledge may disagree. If you have an ITIN, your husband can claim you as an exemption, provided you have no gross income for U.S. tax purposes and are not the dependent of another U.S. taxpayer. It may not matter now, but someday it might be very useful. You can apply now or nearer the time when it may be useful.
The interest bearing accounts your husband would list on Schedule B (Part I) are those for which he is the owner (sole or joint). He would not list any account for which you are the sole owner, provided he files as ‘married filing separately’.
The instructions state you must file Schedule B if “You had over $1,500 of taxable interest or ordinary dividends”. Nonetheless, imho, your husband must file Schedule B due to the $10,000+ in a foreign bank account (Part III). If there is less than $1,500 many on here would say you don’t have to list them in Part I or II, and that there’s no need to give the IRS any information that is not required.
It’s an uncomfortable time to be a US citizen with a foreign bank account, even though it’s a completely honest account to which your husband is entitled. Imho, I see no disadvantage in listing the accounts (US and UK). If your husband files Form 2555 (FEIE) and all his income is excluded, his personal exemption of $3,650 and standard deduction of $5,700 should more than cover the interest/dividends from Schedule B, and result in $0 tax due, provided there is no other income which when combined with the interest/dividends equals more than $9,350. But that’s just the way I would do it. Absolutely everything has been declared.
There may well be further posts from the professionals (and others) who vehemently disagree with that last paragraph.
Xpost with forkandspoon
forkandspoon, what you do with your funds when they leave your account doesn't matter, as long as it's legal. There's no need to include his account.
