It’s typical for US residents to marry foreigners while they are employed and living overseas, and as with many other life transitions, a new spouse brings new tax issues. Can you file as a single person if you have a nonresident foreign spouse? How do you file taxes if your spouse lacks a Social Security Number (SSN)? Is it still possible to file jointly? How do taxes work if you have a nonresident foreign spouse?
These unknowns can become overwhelming. But rest assured- here’s what you need to know: You can file as Married Filing Separately, Married Filing Jointly, or as Head of Household. If you’re married to a nonresident alien, the default filing status is Married Filing Separately (MFS).
We understand—and here’s what you should know: You can file as Married Filing Separately, Married Filing Jointly, or as Head of Household. If you’re married to a nonresident alien, the default filing status is Married Filing Separately (MFS).
Picking a tax filing status isn’t something you should take lightly, so we’ve explained the essentials to help you decide which option is ideal for you and your spouse. Do you need assistance deciding how to file if you are married to a nonresident alien? Whether you file expat taxes alone or with an expert, PSACPA is here to assist.
Can I file single if I’m married to a nonresident alien?
Suppose you’re an American who wedded a Canadian and lives and works in Vancouver. As tax season arrives, you may question whether you may still file as a single person. Regrettably, you cannot register as a single person if you are married to a nonresident foreigner (NRA). After marriage, you must choose between Married Filing Separately and Married Filing Jointly. The tax regulations remain the same whether your spouse remains in Canada or resides in another nation.
Married Filing Jointly with nonresident alien spouse
Filing jointly with a nonresident foreign spouse is a popular option that, in some situations, can provide a significant increase in the standard deduction. Imagine you’re a US citizen married to a Canadian citizen who doesn’t work. If you filed separately, you could only be eligible for a standard deduction of $12,200 on your US taxes.
If you classify your nonresident foreign spouse as a resident and file jointly, you will be entitled to the regular $24,400 deduction for married couples. Yet, before you hop on the married-filing-jointly bandwagon, you should be aware that it may not be in your best interests.
When you file jointly and choose to classify your nonresident alien partner as a resident, his or her international income is taxed in the United States. It implies your Canadian spouse will face the same US taxation as you, even if you both live in Vancouver. If your spouse doesn’t really work or has a low salary, it might not be an issue; but, if your spouse has a nice job and pays the majority of the costs, it could be more economical to file separately. If you opt to classify your nonresident alien spouse as a resident, you will be able to take advantage of several tax advantages that would not otherwise be accessible to a nonresident.
To choose Married Filing Jointly, you must:
Include a statement declaring that one partner is a nonresident alien and the other is a US citizen or resident alien, and that both of you want to be considered as US citizens. Both partners must sign this declaration.
Add each spouse’s information, including name, address, and SSN (or ITIN if you’re married to someone who doesn’t have an SSN). If your spouse does not have an SSN or an ITIN, they may obtain one by submitting the necessary paperwork and applications to the IRS.
If the nonresident spouse does not work, filing jointly is the best option. But, in order to do so, they must get an ITIN.
While you must both elect to file a single return the first year, you have the option of filing separate returns in subsequent years if you revoke the joint election. If you choose to withdraw the election, your nonresident alien spouse must file Form 1040 NR and meet the same filing requirements as other nonresident aliens. It’s also worth noting that you must renounce this filing option in writing; else, your NRA spouse would be classified as a resident alien for tax reasons.
Married Filing Separately with nonresident alien spouse
If your partner does not file as a resident, you can file as Married Filing Separately.
This is the standard filing status for a US citizen married to a nonresident foreign.
If you are married to a nonresident foreign, you may be entitled to use the Head of Household filing status.
To register and file as Head of Household when wedded to a nonresident immigrant, you must pay more than half of total domestic costs, your dependents must reside with you, and they must have a valid U.S. social security number.
What if you’re married filing separately and don’t have your spouse’s Social Security number? You can still e-file if they are a nonresident immigrant without an ITIN.
Under the most favorable circumstances, determining whether an individual is a resident alien or a nonresident alien can be difficult. A PSACPA professional can assist you in determining the best choice for your specific situation.
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