US IRS Status advice

[wwest5829]

We married this year and the tax year for US citizens is drawing to a close. This year I will be doing the extensive IRS reading concerning a change in reporting status but I am soliciting input from Americans married to Thais (who are not US citizens or having a Green Card).

 

Da is a Thai citizen. We have no intention of living in the US nor her gaining any residency/citizenship in the US. Things in Thailand go to Da on my death. Things in US go to my Sons (separate wills - no co-mingling).
 

So, tax filing status advice? I am sole support, her Daughter is a h.s. student living with us. Tax status advice … Married Filing Jointly, Married Filing Separately, Head of Household? Any thinking on good, fair tax reporting agencies (I am in Chiang Mai)?
 

bill

[sqwakvfr]

I would find a CPA with experience on your particular situation.  I have lived in Thailand for years(I file single) and my US based CPA files my Federal and State Returns.  The CPA I use has extensive experience with overseas Americans but no experience with those married to foreigners.  

[bbko]

I file my taxes as married filing jointly using her ITIN, but I also have my son and he has a social security number so there incentive for me to fill jointly, bigger return.

[lopburi3]

1 hour ago, andy said:

If you do MFJ, your wife has to apply for an ITIN from the IRS and this essentially puts her on the IRS tax radar for life (including FACTA, FBAR, and all the other <deleted>). 

The is no requirement to file FBAR for a non resident ITIN joint tax filer if not living in USA.  They are only treated as a US Person for joint tax account filing.  

https://www.google.com/search?q=fbar+filing+requirement+for+non+resident+itin+alian&ie=utf-8&oe=utf-8&aq=t

 

If wife has limited income it is normal to file joint return.  New policy I believe is apply for ITIN with first tax return and in later years just use the ITIN on return.  

[JimGant]

19 hours ago, andy said:

Upside is that your wife remains completely off the IRS tax radar, which could be handy for several reasons....

The only upside is if wife has Thai taxable income way above the $12550 deduction she and you lose by not getting her an  ITIN and filing MFJ. And even if her Thai income was well above 12,550, her Thai taxes on this would be a tax credit on your US tax return, so you still might come out ahead.

 

Not sure where you're coming from with "IRS tax radar." Having an ITIN doesn't make her subject to FATCA and FBAR reporting. In fact, having an ITIN and filing MFJ allows you to double (from $300 to $600) the threshhold required to file a FATCA form with your 1040.

 

And by not getting an ITIN, and thus required to file MFS, 85% of your social security retirement income is now taxable income (where zero would be taxable, based on your report that her deduction would mean nothing, apparently based on a low AGI).

 

No, never saw a reason for not getting one's NRA wife an ITIN. Heck, when you die, she goes back to being of no interest to the IRS, except maybe for the final tax return in the year of your death.