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Topic: Reporting Non-resident Alien Spouse Foreign Income  (Read 1098 times)

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Reporting Non-resident Alien Spouse Foreign Income
« on: March 19, 2013, 07:03:55 PM »
I am a USC living in the US; my spouse is a UKC citizen living in the UK.  I want to file as "married - filing jointly."  (There is a significant benefit for us doing so.) 

What I can't figure out is how (what forms to use) to report and then exclude my spouse's foreign income.  If it were my foreign income, I could use Form 2555, but it seems that's only applicable to US citizens or resident aliens. 

Help? 
3 Dec 11 - Engaged in Provence
8 Jul 12 - Married in Glasgow
1 Mar 13 - Spousal Visa Application Submitted Online
6 Mar 13 - Biometrics Taken
8 Mar 13 - Application Mailed to UK Consulate in NYC - Priority Settlement Service
12 Mar 13 - Application Received in NYC (via UPS tracking)
15 Mar 13 - Application Received in Sheffield and Being Processed
18 Mar 13 - A Decision Has Been Made
20 Mar 13 - Visa Received!!!


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Re: Reporting Non-resident Alien Spouse Foreign Income
« Reply #1 on: March 19, 2013, 07:05:46 PM »
I may have answered my own question, but want to confirm. 

If you make the election to file jointly with a nonresident alien spouse, then you elect to choose to treat the nonresident spouse as a resident alien.  Thus, it seems you just use Form 2555.

Thoughts appreciated.
3 Dec 11 - Engaged in Provence
8 Jul 12 - Married in Glasgow
1 Mar 13 - Spousal Visa Application Submitted Online
6 Mar 13 - Biometrics Taken
8 Mar 13 - Application Mailed to UK Consulate in NYC - Priority Settlement Service
12 Mar 13 - Application Received in NYC (via UPS tracking)
15 Mar 13 - Application Received in Sheffield and Being Processed
18 Mar 13 - A Decision Has Been Made
20 Mar 13 - Visa Received!!!


Re: Reporting Non-resident Alien Spouse Foreign Income
« Reply #2 on: March 19, 2013, 09:48:33 PM »
How can you choose to file jointly if your spouse isn't a resident alien - surely they must have spent a certain number of days in the US, and have an ITN or SS #?


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Re: Reporting Non-resident Alien Spouse Foreign Income
« Reply #3 on: March 19, 2013, 10:45:43 PM »
You can choose to do it.  You make an election to treat your non-resident alien spouse as if s/he was a resident.  There's no minimum residency requirement.  See here for more info: http://www.irs.gov/Individuals/International-Taxpayers/U.S.-Citizens-and-Resident-Aliens-Abroad---Nonresident-Alien-Spouse

And you can apply for an ITIN via the normal method (by submitting a W-7 along with your return).

It can be much more financially beneficial to treat your spouse as a non-resident alien, particularly if you can exclude the entirety of their foreign income (which we can).  You can take an additional exemption, plus you can take certain deductions from which you are excluded if you're MFS.  For us it's about a $4k difference between MFS and MFJ.  Thus, no matter the headache, I'm determined to file jointly! 

3 Dec 11 - Engaged in Provence
8 Jul 12 - Married in Glasgow
1 Mar 13 - Spousal Visa Application Submitted Online
6 Mar 13 - Biometrics Taken
8 Mar 13 - Application Mailed to UK Consulate in NYC - Priority Settlement Service
12 Mar 13 - Application Received in NYC (via UPS tracking)
15 Mar 13 - Application Received in Sheffield and Being Processed
18 Mar 13 - A Decision Has Been Made
20 Mar 13 - Visa Received!!!


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