pk
Level 15
Level 15

Deductions & credits

@ZaiKajou , as you point out, you want to show both your and your spouse's income on form 1040  and that even with two incomes ( both in US$) you would have zero taxable income  ( i.e. gross income less standard deduction ).  There is no real requirement  for you to file a form 2555 and try to take advantage of Foreign Earned Income exclusion. 

As far as  ACA eligibility  goes , I am not very conversant with that subject  but always though that most states  have expanded medicaid ( State medicaid eligibility ) to cover  those in-between   normal Medicaid and ACA.   Hopefully one of my  colleagues (@Opus17 ) can better answer this for you.

A question I have for you is -- you seem to refer as "they" when referring to income of your spouse  ---are there multiple earners in your family in Canada or what ?