Should I add my foreign spouse to my US tax return?
Published on June 18, 2022
Updated on October 23, 2024
by Clark Stott
Clark Stott has been with Expat Tax Online since 2015. Being a dual national based in the UK, Clark has unique experience helping US citizens (and Accidental Americans) become tax compliant via the Streamlined Tax Amnesty program. Clark likes to help Americans in the UK keep their tax situations as simple as possible to avoid harsh IRS treatment.
Table of Contents
Should I add my foreign spouse to my US tax return?
It entirely depends on how you view and treat your spouse’s income for tax purposes. Some benefits and drawbacks must be weighed before adding your foreign spouse to your US tax return.
It is essential to incorporate this decision’s short-term and long-term effects into your tax planning to determine the best approach for your situation.
Why would I add my foreign spouse to my US tax return?
Filing jointly with a foreign spouse can be a beneficial strategy for US citizens seeking to maximize tax credits, especially when children are involved.
For example, a US citizen married to a Canadian citizen and living in Canada with their dual-citizen children—who have a US Social Security Number—might consider this option.
If the US spouse has no income and the Canadian spouse is the sole earner, filing jointly can combine their incomes, potentially qualifying them for significant tax refunds like the Child Tax Credit that was previously inaccessible.
While the Canadian spouse must apply for an Individual Taxpayer Identification Number (ITIN), which must be renewed every three years, the potential tax refund far outweighs the minimal cost of obtaining the ITIN.
This arrangement can continue until the children turn 17 or the US spouse earns enough income to claim the credit on their own.
My spouse is considered a non-resident alien. How can I add them to my US tax return?
You have two ways to approach this:
- Treat the spouse as a resident alien: You’ll need to report their foreign income to be subject to US tax.
- You need to file a joint return on the first year of your tax reporting.
- Your spouse should have a Social Security Number (SSN) or an Individual Taxpayer Identification Number (ITIN).
- In later years, you can choose to continue filing jointly or separately.
- Treat the spouse as a non-resident alien:
- You’ll need to use the ‘married filing separately’ status.
- You need an Individual Taxpayer Identification (TIN) number for your spouse.
- If your spouse has no US-sourced income and is not a dependent of another US citizen, you can claim an exemption for them.
Why use the IRS Streamlined Tax Amnesty Program?
It’s for American citizens that didn’t know they had to file US tax returns each year, and have therefore fallen behind. Some more than 30 years! With the IRS Streamlined Procedure, say goodbye to overdue tax returns, late fees, and penalties.
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What if my foreign spouse doesn’t have an SSN or an ITIN?
Your spouse needs to apply for identification by filing the proper forms, such as Form W-7 and other applications with the IRS.
What if my foreign spouse has a green card?
In this instance, your spouse is considered a permanent resident of the US or simply, a resident alien and will be responsible for filing and reporting their own US tax return for their foreign income.
You have the option to use the ‘married filing jointly’ status when filing your tax return and potentially receive a higher standard deduction and personal exemptions.
If your resident alien spouse is a citizen of another country while living in the US, you can check if the US has a tax treaty with their home country.
How do I file taxes using the ‘married filing jointly’ status?
You can follow these steps to file a joint return with your spouse:
- Fill out your tax return: Complete Form 1040 electronically or manually and report your combined income, deduction, and credits.
- Prepare a statement: Create a statement declaring your spouse as a non-resident alien and you as a US citizen. Both of you must sign the declaration.
- Gather information: Include required data like both of your names, addresses, and identification numbers (SSN or ITIN).
- Attach to the tax return: Attach your statement to your joint tax return (Form 1040) for the first taxable year for this change.
- File and report your return: Submit your completed tax return with the attached signed statement to the IRS.
How do I file taxes using the ‘married filing jointly’ status?
You can follow these steps to file a joint return with your spouse:
- Fill out your tax return: Complete Form 1040 electronically or manually and report your combined income, deduction, and credits.
- Prepare a statement: Create a statement declaring your spouse as a non-resident alien and you as a US citizen. Both of you must sign the declaration.
- Gather information: Include required data like both of your names, addresses, and identification numbers (SSN or ITIN).
- Attach to the tax return: Attach your statement to your joint tax return (Form 1040) for the first taxable year for this change.
- File and report your return: Submit your completed tax return with the attached signed statement to the IRS.
What if I have other qualifying relatives living with me?
For tax purposes, you may be eligible to file as ‘head of household’ as your status in your tax return and receive a better standard deduction than if you filed ‘married filing separately.’
Can I change the status of my “married filing jointly” on my tax return?
Yes, you can amend your tax return status with added requirements to follow. You can change your status within three years from the original filing date to make this change.
However, the choice will no longer apply if neither of you is a US citizen or US resident during any time in the later tax year.
How do I revoke the choice to be married filing jointly?
The revocation must be made in writing. Otherwise, your spouse will continue to be treated as a US resident alien for tax purposes.
Reasons for ending “married filing jointly” on US tax return
- Legal separation
- Death of either spouse
- Revocation by either spouse
- Inadequate records
If the choice to file jointly ends for any reason, neither spouse can choose to file as “married filing jointly” in any future tax year, even if they marry someone else.
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