SusanY1
Expert Alumni

Get your taxes done using TurboTax

When you make an election to treat your nonresident alien spouse as a resident alien for tax purposes, she does not become eligible for the foreign earned income exclusion.  However, she can take the foreign tax credit for any taxes that she pays to the country that she works in on that same income.  

 

The Foreign Earned Income Exclusion (FEIE) is only available for taxpayers who are required to pay taxes to the U.S. on their income earned overseas.  In the case of the nonresident alien spouse, there is no requirement to include the income.  Therefore, the exclusion isn't available when you elect to include it.  

 

If she lives in a country that has an income tax, be sure to report the tax she paid in Deductions & Credits for Foreign Taxes Paid.

 

 

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