She is a non-resident from Jan - green card date and a US-resident from green card date through 12/31/2025. There is a special election to treat her as full-year resident and file jointly.
Sometimes this lowers tax, but sometimes it increases tax. It depends on how much foreign income occurred before residency and your income level.
How should I file my taxes if my spouse is a nonresident alien?
How should I file my taxes as a dual-status alien?
Yes, she reports worldwide income after U.S. residency begins. You can use payment-date exchange rates (or IRS annual average where appropriate).
You can claim Foreign Tax Credit for any Japanese taxes paid. Non-taxable child care payments would be tax-free in the US if it was public assistance.
Watch FBAR and FATCA > If at any point in 2025 she had more than $10,000 total across foreign bank accounts, FinCEN Form 114 FBAR must be filed! and if filing Married Filing Jointly, you must file Form 8938 if foreign financial assets exceed $100,000 (year-end) or $150,000 at any point.
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