Marriage Tax Law (do I Need To File?)

[universe2000]

I was looking for a general overview of the US tax law. I am a US Citizen married to a Thai. There is a foreign exemption amount, but I think I still need to file a joint or seperate tax form. She is working and thus I probably need to show that income, even through it will not be taxed.

[lanny]

If you are a US citizen and have more than a minimum amount of income, you are required to file a US income tax return. If your wife is Thai, you CAN, but are not required, to file a joint return. She will need a taxpayer identification number (TIN) but that can be applied for with the return.

This is not a simple decision! There are downsides to including her on your return. For one thing, by filing the joint return, you are electing to include your wife's world-wide income on the return. Since only EARNED income (salaries, wages, etc.) qualifies for the foreign exclusion, this can make otherwise non-taxable income subject to US tax. Once you have made the election, you are bound by it in future years.

Also, remember that the foreign exclusion is not automatic. You must file a return and provide certain information to IRS to claim the exclusion.

Finally, to the extent you do not claim the exclusion, you can take a credit for any Thai taxes paid on the non-excluded income.

[universe2000]

If I file seperately, I would just show my US income and any income I make in Thailand. Even if I have a joint account with my wife, and my income goes into the joint account, as long as I can show my portion of the account, this is all the US government would need.

Would it be easier to just have a seperate Thailand account which my Thailand earnings go into and than I manually transfer that money into a joint account? Than it would be clear what portion is my income?