1. Yes, you qualify to be considered for HOH since your spouse did not live with you the last 6 months and have qualifying children living with you for more than half the year.
2. Yes, when you file MFJ you report the worldwide income of both spouses. When you report the foreign income, you can claim a credit for the foreign tax paid on the income using form 1116.
Take a look at the rules in Nonresident Alien Spouse | Internal Revenue Service since you made the choice to file joint last year, be sure you understand the full set of rules.
Caution: The election is once in a lifetime and you won't be able to make the MFJ election again under these circumstances. Carefully consider since you have already used your once in a lifetime chance.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
