Helpful Quick Bits: To File Jointly or Not?

Ah, the joys of a new international marriage and figuring out what to do about our taxes. It’s complicated! Here’s what I’ve learned so far:

  • As a nonresident alien, Stuart does not have to report any income to the IRS. That’s good.
  • Because Stuart and I were married this year, I’ll have to file “married filing separately”, and that means higher taxes. In fact, I’ll lose what would have been a very nice refund. That’s bad.
  • However, we have the option to elect to have Stuart treated as a resident alien for tax purposes and file jointly. That’s good.
  • But if we do that, Stuart will be taxed on his worldwide income until such time as we rescind “the choice” as it is called. And that choice can only be made once in a lifetime. Now might now be the time. That’s bad.
  • That’s because, right now, we’ve decided to settle in France, meaning there’s really no reason to drag Stuart into the US tax system. That’s good.
  • But apparently, I’ll still need to file US Income Tax as well as the infamous FBAR on all bank accounts, even those I share with Stuart. That sucks.
  • And once I establish myself and my microentreprise in France, I’ll have to file taxes in France and the US. That really sucks.
  • Fortunately, there are things like tax treaties, foreign earned income credit, and foreign tax credit. That’s good.
  • And thank God there are financial planners and accountants who specialize in the confusing, complicated web of expat taxation. That’s even better!

(Well…I am TRYING to end on a positive note.)

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