How to File Taxes If Your Spouse Lives in Another Country
If your spouse is not a US citizen, you may have to file separate state and federal tax returns. Here’s how to file taxes if your spouse lives in another country.
Can I File Single If My Spouse Lives in Another Country?
Married individuals with a nonresident alien spouse cannot file as single. The IRS requires married couples to choose between ‘married filing jointly’ and ‘married filing separately’ status, regardless of the spouse’s residency.
Married Filing Jointly with Nonresident Alien Spouse
Filing jointly with your nonresident alien spouse can offer significant tax benefits, but it also comes with additional responsibilities. When you file jointly, your spouse will be treated as a US resident for tax purposes, meaning both of your worldwide incomes must be reported to the IRS. Here’s what you need to know before choosing this option:
- Eligibility: You can file jointly if your spouse has a US Social Security Number (SSN) or an Individual Taxpayer Identification Number (ITIN). If your spouse doesn’t have an SSN, you can apply for an ITIN by filing Form W-7 with your tax return.
- Tax benefits: Filing jointly allows you to claim the highest possible standard deduction. In 2024, the standard deduction for married couples filing jointly is $29,200.
- Worldwide income: By filing jointly, you are required to report your spouse’s global income. This includes any foreign wages, rental income, or investments. However, you may be able to reduce or eliminate double taxation by utilizing the Foreign Earned Income Exclusion or Foreign Tax Credit.
- 6013g election: If your spouse does not have a green card or does not meet the Substantial Presence Test, you can still elect to treat your spouse as a resident for tax purposes under the 6013g election. This election obligates you to report and pay tax on your spouse’s worldwide income. Making a section 6013g election is normally done for purposes of immigrating to the US. Before making this election, you should seek the advice of an immigration attorney or a tax professional.
Filing jointly is usually the most beneficial option, especially if your spouse has little or no income. However, you should carefully consider whether reporting worldwide income might increase your tax liability. Consult a qualified tax expert to determine the best approach for your situation.
Married Filing Separately with Nonresident Alien Spouse
Filing separately can simplify the process while avoiding certain tax liabilities. Although you’ll miss out on some benefits, like the higher standard deduction, this method could be the best choice for your situation. Here are the key factors to consider:
- No worldwide income reporting: If you choose to file separately, you do not need to report your foreign spouse’s global income. This can be helpful if your spouse earns significant income outside of the US, as it won’t be subject to US taxation.
- No joint liability: Filing separately also ensures that you are not liable for your spouse’s tax obligations. This can be an important consideration, particularly if your spouse has complex foreign income or assets.
- Lower standard deduction: For 2024, the standard deduction for those filing separately is $14,600, much lower than the $29,200 available for those filing jointly. While this may result in higher taxable income, it might still be preferable if your spouse’s foreign income is substantial.
- Eligibility for Head of Household status: In some cases, if you are the primary financial provider for dependents, you may qualify for Head of Household status. To do so, you must pay more than half of household expenses, and your dependents must live with you. This status offers a higher standard deduction than married filing separately.
- Form 1040NR: If your spouse has US-source income, they may need to file Form 1040NR as a nonresident alien to report any US income separately.
While this filing status offers less favorable deductions, it can be a useful option for those who want to protect their spouse’s foreign income from US taxes.
Filing Taxes with a Foreign Spouse? Greenback Is Here to Help!
Hopefully, this guide has helped you understand how to file taxes if your spouse lives in another country. If you still have questions, we have the answers! Our team of expert accountants is standing by to provide you with the tax expertise you need to make educated tax decisions.
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