My wife is a UK citizen and resided and worked there throughout 2023 while waiting for her spousal visa. She meets the IRS rules to have her income exempted.
I am an American citizen residing and working in California. As an employee of an American company, I am liable for federal and state taxes.
We plan to file our 2023 taxes jointly once again, as we did for the first time last year.
This year, our federal tax liability changes from a refund to owing money, while our California state taxes decrease significantly when we enter her income (which is less than $120k) under the "Foreign Earned Income and Exclusion" section.
Last year, when we filed jointly and excluded her income, we received a larger refund, and we expect a similar outcome this year.
Could someone please advise us on the steps we need to take to ensure that her UK income is excluded from US taxation?
Thank you.
