Why do I (British husband of USA citizen) need to file a tax return in the USA?

Hi there,

My husband got his spousal visa approved and arrived in the U.K. in October. He's now just doing his USA tax return and as we got married last year it's asking more details about me (the British spouse) and he can't submit a return without me having set up myself with an IRE W7.

I personally don't understand why I; as a British citizen; that's never lived in the USA nor worked there would need to request a USA tax number and I suspect that means complete returns each year. Yet he doesn't appear to be able to continue with his tax return until i do this.

Anyone else had this same issue or has some advice to share?

If this is going to be complex, I'm wondering if we should hire someone to help us with the tax return - even though our finances are very straightforward. Any recommendations of tax advisors in the U.K. or USA that are cost effective and recommended?

Thank you
Simon

You don't.  Depends on what software you are using.  I use Tax Act.  It allows you to select NRA for the spouse.  I have to enter my husbands name but that's it.  Turbo Tax won't allow you to proceed.  No idea why they've never changed that!

Regardless of whether or not he has a TIN, his income has to be included only if you choose to file jointly - you could still file MFS and treat him as a nonresident alien.

If your husband files "Married Filing Separately" then you can avoid US tax and interacting with the IRS......however your husband will need to declare and pay tax on his portion of any assets that you jointly own.

If the software you are using requires a SSN or a TIN for the NRA spouse (ie you) then just print out the return, write "NRA Spouse" in the SSN/TIN field and mail it.

If you have any joint non-US bank or financial accounts these will be declared on his FBAR and 8938.

As he only arrived in the UK in October he is about 7 months too early too file his 2016 US return claiming the foreign earned income exclusion, as he does not yet have a 330 day qualifying period overseas. He similarly cannot claim exemption from Obamacare until he has a qualifying period overseas.  He needs to file for an extension on Form 4868. 

Regardless of whether or not he has a TIN, his income has to be included only if you choose to file jointly - you could still file MFS and treat him as a nonresident alien.

I mistakenly wrote the post as if I were speaking to your (USC) wife, not you.

Your husband checking 'married filing separately' is the key, as that will take you out of IRS interest. If he doesn't have that option, change software of seek help from an expat tax specialist firm such as Bright!Tax. But there's no reason for you to get involved with the IRS unless or until you either live in the US or get US citizenship.

I met my wife when she was studying in America twenty years ago and she  had a SSN valid for work only with ins authorization. But since living here, I file married filing seperately and use her SSN number so I can file electronically and it works a charm. What pisses my wife off is though she isnt a US citizen and we have a joint bank account the money she puts intot he account will still trigger FUBAR ie if she got a car loan.

I met my wife when she was studying in America twenty years ago and she  had a SSN valid for work only with ins authorization. But since living here, I file married filing seperately and use her SSN number so I can file electronically and it works a charm. What pisses my wife off is though she isnt a US citizen and we have a joint bank account the money she puts intot he account will still trigger FUBAR ie if she got a car loan.

It was your wife's choice to marry a US person. Having made that choice, if she chooses to deposit her money in a joint foreign account this is indeed FBAR reportable; but the choice is hers before making that deposit.

FUBAR

I'm not sure if this was intentional or a typo, but it made me laugh.

So many things around US taxes (especially as expats) feel like a giant F-U.

I know taxes are our duty as USCs, but they still suck.

I'm not sure if this was intentional or a typo, but it made me laugh.

So many things around US taxes (especially as expats) feel like a giant F-U.

Freudian Slip 

I know taxes are our duty as USCs, but they still suck.

It was your wife's choice to marry a US person. Having made that choice, if she chooses to deposit her money in a joint foreign account this is indeed FBAR reportable; but the choice is hers before making that deposit.

This is a TSB account she has held since she was five in the UK and I was added twenty years ago before FBAR was even considered.
Since then she has her own account not associated with myself.

This is a TSB account she has held since she was five in the UK and I was added twenty years ago before FBAR was even considered.
Since then she has her own account not associated with myself.

The FBAR was created by the 1970 Bank Secrecy Act; with the first form published in 1972. The obligation has been around much longer than twenty years back.

The FBAR was created by the 1970 Bank Secrecy Act; with the first form published in 1972. The obligation has been around much longer than twenty years back.

Cool, thanks for correcting me.

Many aspects of the US tax code can seem unfair, stupid and unnecessarily complicated. However, people often do not take the time to understand the consequences of their actions. With just a bit of thought and planning a lot of grief can be avoided.