Marrying a non-U.S. citizen changes how you file your U.S. tax return. This guide explains your filing status options when your spouse is a nonresident alien, and the trade-offs of each.
Is your foreign marriage valid for U.S. taxes?
The IRS looks to state or foreign law to decide whether a marriage is valid. In most cases, a marriage performed in another country is valid for U.S. tax purposes.
Can you file as single after marrying a non-U.S. citizen?
Generally, no. Married people can’t use the single filing status. Also, if your spouse is a nonresident alien, you can’t file a joint return unless you make a special election.
So you have three main options. Each one affects your tax and reporting duties differently. For that reason, weigh them carefully.
Option 1: Married filing separately
For a U.S. citizen married to a nonresident alien, the default status is married filing separately (MFS). This status is simple to file. However, it comes at a cost.
The biggest downsides are higher tax rates and the loss of some credits and deductions. If you have no dependents, this may be your only practical choice.
Option 2: Head of household
If you have a qualifying dependent, head of household is often the better choice. For this purpose, you can be treated as unmarried because your spouse is a nonresident alien. In addition, you must meet these tests:
- You pay more than half the cost of keeping up a home for a qualifying person who lives with you for more than half the year, or
- You pay more than half the cost of keeping up a home for a parent you can claim as a dependent. Your parent doesn’t have to live with you.
You can’t claim your nonresident spouse as a dependent. However, you can claim other qualifying people who are U.S. citizens, U.S. nationals or residents of the U.S., Canada or Mexico. They must meet all the rules. Otherwise, head of household status isn’t available.
In many cases, this is the best status when you’re married to a nonresident, because it offers lower rates and a larger standard deduction. Keep in mind that your dependent needs a valid Social Security number or ITIN.
Option 3: Married filing jointly
Finally, you and your spouse can elect to treat your spouse as a U.S. resident for tax purposes. This election lets you file a joint return.
Filing jointly gives you lower tax rates and deductions that aren’t available to separate filers. On the other hand, it makes your spouse’s worldwide income subject to U.S. tax. It may also bring new reporting duties. For example, your spouse’s foreign accounts may require an FBAR or Form 8938 if they exceed the filing thresholds.
In practice, this option works best when your spouse has little or no income. It also helps if your spouse has no foreign accounts or investments that would create U.S. tax problems.
There is one more hurdle. Your spouse needs a Social Security number or an Individual Taxpayer Identification Number (ITIN). Applying for an ITIN takes extra documents and can delay your return. Our ITIN application service can help. For the IRS rules, see the IRS page on nonresident spouses.
Get help after marrying a non-U.S. citizen
The right filing status depends on your income, your spouse’s income and any dependents. So talk with a tax advisor before you file. To discuss your situation, call (415) 842-2940 or book a free 15-minute call.