If you are a U.S. citizen’s spouse living in a nation other than your own, you may be wondering how the IRS regards your relationship. A foreign spouse is a spouse who is not a United States citizen.
This implies that the nonresident spouse must pay taxes on any income received in the United States. The tax consequences for a foreign spouse of a US citizen differ. You may be eligible for the IRS’s special tax incentives and relief programs. Tax reductions and deductions, such as the Foreign Earned Income Exclusion and the Foreign Tax Credit, are available to you.
If you are a nonresident immigrant, you can use the same filing forms and deadlines as an American citizen.You may be required to file an FBAR (Financial Accounts and Reports) form. If your country has a tax treaty with the U.S., you can treat your nonresident spouse as a resident for tax purposes.
The IRS has two ways you can ensure that your nonresident spouse is treated as a resident for tax purposes. The first way is by filing a joint tax return, which is the easiest way to do it. You must provide your social security numbers, employer ID numbers, and full addresses.
A second option is to file a separate tax return for your foreign spouse. You can also choose to consider the nonresident spouse as a resident for other tax reasons, but the tax rate will be greater. This position is also known as “head of household.”
A third option is to treat your foreign spouse as a resident retroactively. The amendment must be filed within three years of the original return date. If you file a return after the year you treated your nonresident spouse as if they were a resident, you will need to provide a new joint return (Young, 2023).