US Tax Filing Status MFS/MFJ

[NoDisplayName]

US citizen married to a Thai lady.

Lady has no income, has no US ITIN.

2023 filed Married Filing Separately.

No dependents to qualify for HoH.

 

I'm currently doing my own research on switching to Married Filing Jointly.

This would not change my/our total worldwide income, but I should qualify for the married deductions/exemptions.

2024 Standard Deduction increases from $14,600 to $29,200

2024 0% Capital Gains bracket increases from $47,150 to $94,300

Result being I can take up to $120K LTCG without paying tax, as opposed to $60K.

 

Any downside to this filing status, other than requirement of filing for an ITIN?

Seems we would have to mail in certified copies of her passport and/or ID card along with Form W-7 to apply.

For those having done this, what is acceptable as "certified"?

Does this require a visit to the US embassy for notarization?

I will need to file form W-7 with supporting documents with a mailed-in tax return, after that can e-file?

 

 

 

Edited 3 hours ago by NoDisplayName

[gamb00ler]

use your favorite search engine to search for 'disadvantage "married filing jointly" '

 

I've done that and here is probably the most helpful link:

https://www.hrblock.com/tax-center/filing/personal-tax-planning/married-filing-jointly-vs-separately/#:~:text=Benefits of Filing Jointly vs,if you file separate returns.

 

[NoDisplayName]

I don't see any downside, other than the certified copies to attach to the W-7, which I would need for next year's paper tax return.

No state returns required, no itemized deductions.

 

Upside is another $60k in tax-free LTCG.

Upside is higher tax-free limit for interest and dividends.

Upside is eventual SS payments will have a higher tax threshold.