If You're American And Marry A Thai

[Jimjim]

Pretty simple if any Americans know this. When you get married to a Thai or anyone not American, for that matter. And of course she/he does not have American citizenship even if she/he may get it in the future, what about taxes? Do you have to report his/her earnings and bank account info (regarding some new law I saw somewhere that you now have to report any amount over $10,000 in any overseas bank to our silly government if you're American)?

I am asking because you know, when you get married everything is shared and all that and my American friends married to Americans always prepare a joint tax return, etc. Now I know if I married a Thai woman she would not need to pay taxes in the U.S. if she is always residing overseas, but would I need to report on my non-citizen spouse's income? Also, if we are married and living in the U.S., would I need to report any earnings on land, etc. she may be getting in Thailand on our tax return?

Well, American tax experts (if any are out there), I think you get the picture.

[CWMcMurray]

I would say it depends upon how you file your taxes...

You have the option of filing jointly or separately (even if applying for overseas income exemption you will still need to file).

From my understanding, if you file jointly then you should get TIN (tax ID number) for your wife and then include her income.

If you file separately, then only your income would be applicable (I think the choice is pretty obvious as to which option most folks would choose).

For the Bank filing... if you (the americam) are listed on the bank account or as an authorized signitory, then it would be included in your overseas bank holdings and if the min reporting requirement if over 10,000 USD is reached in all accounts combined, then you would need to report.

If your wife is the sole account holder and you are not on the account or authorized to withdrawl funds from the account, then my understanding is that this account does not need to be added your total overseas bank holdings and if you reach the limit from other accounts, your wife's account will not need to be included in your anual report.

[Jimjim]

That would make plenty of sense if true. Thank you. Any other comments. Is this accurate?

I am not questioning your knowledge, just want to see if all agree.

If filing seperately does that mean you do not get the advantage of a tax break for being married?

[PeaceBlondie]

I ain't no expert. I suspect CWMcM is probably mostly right, I stink (read my signature).

[Jimjim]

Thanks anyway, Robin Hood.

[taxout]

As well as assuming that your wife's not a US citizen, let's also assume that she's not a green-card holder, that she doesn't spend any significant periods of time in the US, and that she doesn't derive any income from the US.

Detailed rules on the election to file a joint return mentioned above are described here:

http://www.irs.gov/businesses/small/intern...d=96734,00.html

Note that once you make the election, you can revoke it in a later year, but you can't then elect it again.

The foreign bank account disclosure rules apply not only to accounts over which you have signature authority, but to accounts in which you have a financial interest as well. Check the rules to see if they apply to you:

http://www.irs.gov/pub/irs-pdf/f90221.pdf

Remember that interest or other income on your funds held in your wife's name is nonetheless your income for Federal tax purposes.

And yes, if your wife becomes a US resident for tax purposes, then she must report her worldwide income, including income in Thailand. There is a tax treaty between the US and Thailand, as well as a general provision for a foreign tax credit, that should reduce the risk of double taxation in this situation.

[TerryLH]

"If filing seperately does that mean you do not get the advantage of a tax break for being married?"

That is correct.

[sbk]

Thanks anyway, Robin Hood.

Its Peter Pan, and if PB suggest that you've gotten the correct answer already, then I would take it as pretty much for granted that you've already gotten the correct answer.

No expert indeed, PB.

[PeaceBlondie]

I know nothing about IRS foreign issues except what I read on IRS website.

[InterestedObserver]

It is my understanding that as long as your wife remains a nonresident alien, with only foreign sourced income, and maintains separate financial accounts, them you don't have to be concerned about her earnings in regards the IRS.

[thaitot]

If you are married your wife will need a ss number or a tax id number It does not matter If you are filing together or separate.

I just experienced this.

[Jimjim]

Peter Pan, duh. I know that, just a slip of the tongue.

[dave111223]

I checked "Married filing jointly" on the tax return, but only claimed myself as an Exemption. I left all the Spouse fields blank (such as Spouses SS#).

I did not include any of her income on the return.

IRS have not contacted with a problem about it and i've done it that way for the last 3 years...So i guess that means it's OK.

Edited October 21, 2009 by dave111223

[InterestedObserver]

I checked "Married filing jointly" on the tax return, but only claimed myself as an Exemption. I left all the Spouse fields blank (such as Spouses SS#).

I did not include any of her income on the return.

IRS have not contacted with a problem about it and i've done it that way for the last 3 years...So i guess that means it's OK.

You really should get your wife a ITIN and claim her as an exemption. As long as she is a nonresident alien with no US sourced income she (you) do not have to report her income. Technically you are not 'Married filing jointly' because your wife does not have an ITIN. Which Tax Table do you use, single or married filing jointly? You can google ITIN with any questions. As with all things legal or tax related, when in doubt seek professional advise.

[lopburi3]

Taxout gave the regulation I believe - although did not check the link. You have the option. If you want to take advantage of the normal marriage reductions you make the election in writing to have world-wide income taxed and obtain an ITIN number.

So if foreign spouse has little income it would normally be advantages to use the world wide tax option to obtain more deductions. If spouse has a higher income it becomes less attractive - but even there you would have to weight tax treaties to be sure.