@hal5166 , based on your answers, I think and in general my answer earlier is still valid i.e. file MFJ, claim her as a resident for tax purposes with ITIN, exclude her income from US taxes using FEIE ( Foreign Earned Income Exclusion ). Advantage of this would be your MFJ standard deduction ( if needed to lower your US tax liability ).
BTW -- where in Mexico are you located ( Ajijic, Chapala, San Miguel OR ? ) ? My wife was/is from Acatic ( 40 miles from Guadalajara ) and I plan to spend more time there ( as she is buried there ).
Is there more I can do for you ?
