Filing Status: Married Filing Jointly vs Separately

First, congratulations.

Second, what country?

Third, the answer below is generally true, but might be modified if there is a tax treaty with your specific country.  @pk will be the best person to answer that. 

The general rule is that if you file separately, you only report your own income and deductions.  You usually can't e-file because your spouse doesn't have a tax ID number.

If you file jointly, you must make an election to treat your non-resident alien spouse as a US resident for tax purposes.  When you do this, you are required to list all your spouse's income and deduction on your tax return with your own income. This subjects your spouse's income to US taxation, but you can claim a credit or deduction if she also pays tax in her home country.  Filing jointly usually results in lower US tax because it has a lower tax rates, and some deductions and credits are limited or disallowed when filing separately.  However, the financial impact of filing jointly or separately in your situation can only be determined by you, by testing both scenarios.   IRS info here.

https://www.irs.gov/individuals/international-taxpayers/nonresident-spouse

If you want to file jointly, you will need to apply for an ITIN for your spouse.  You can't e-file your tax return.  Instead, print and sign the tax return, and also complete a sign a form W-7 ITIN application.  Mail the tax return, the W-7, and any required identity documents to the IRS address for ITINs, not the address for tax returns.  After the IRS issues the ITIN they will process your return.  Your wife will not be granted an ITIN unless she has a financial connection to the US -- since she does not have a US job or own property, her connection is established by filing a joint return, so she will generally be ineligible for an ITIN if you try to apply before filing the tax return.

Also note that when she applies for citizenship or a green card, there will be a question, "have you ever failed to pay income tax that you owed." She doesn't owe tax if you file separately, unless she somehow has US-source income, but she would owe tax if you filed jointly, so be sure to include her income on a joint return even though she doesn't get a US W-2 or 1099.

This TurboTax help article details your filing options when your spouse is a non-resident alien:

How should I file my taxes if my spouse is a nonresident alien? (intuit.com)

@please_help ,  Having gone through your post ( description of the situation ),  and agreeing with the  responses  from my colleagues @Opus 17  and @TomD8 ,  there are few things  I would like to add:

(a) You have not answered as to  your own immigration status ( citizen/ GreenCard/ Resident for Tax purposes ); if you are US citizen, then which country are you a citizen of  --- this is only for completeness and may have no effect on  tax situation

(b) Your spouse , where is she from ?    Has she ever been to the USA and if so when.  This may affect things because of tax treaty ( if any )

(c) Generally,  if the NRA spouse is not in the USA and your tax home is US, then the  "treating of spouse as a resident "   is  not much benefit, especially if there is no  tax treaty in effect  ( because then you cannot get credit for the foreign taxes paid nor be eligible for Foreign Earned Income Exclusion ).

(d)  Note that when filing a US tax return jointly with your spouse , it is total household  income that is considered for  threshold of filing requirement.

 Please answer the questions   and I will circle back once I hear from you --yes ?

pk

Greetings, TurboTax Community. I appreciate your feedback, Opus 17, TomD8, and pk!

I am an American citizen. I return to Manila in two weeks to conduct an in-person Catholic wedding ceremony to remove all reservations of my love for my foreign wife. This will be my second visit to the Philippines, my wife's homeland.

I remain undecided how to file - either "Married, Filing Separately" or "Married, Filing Jointly." While the former is the 'status quo' allowing for e-File, the latter slightly reduces my taxable income (I will remain at 12% in both scenarios). No matter which is chosen, the economic data will be nearly exclusively my own (my wife has worked as an undocumented live-in caretaker her entire life with no tax reporting requirements due to her income being egregiously low). When I die, as my beneficiary, my wife will then have cause to file a tax return in her name; if all that is needed to file is an ITIN, then perhaps now is the time to apply for her ITIN while accepting that I must mail all federal and state income tax returns from this point forward?

@please_help 

Does your wife intend to move to the US?  Or remain in the Philippines. 

Your wife is only eligible for an ITIN if she has a tax connection to the US.  That tax connection could be created by filing a joint return with you, or by her having US-source income (income that is connected to working in the US).   However, whether or not your pension would be US-source income is something I don't know.  Are you talking about a pension, IRA withdrawals or something else?  I do know that a foreign person who owns stock in US companies is not considered US-source income, so it's not clear to me whether, under US law, your wife would ever need a tax ID number if she never sets foot in the US, even if she inherits some assets from you.  And of course, even if she does inherit and is required to file a US tax return, she could get a tax number at that time.   

Also, if you file separately for 2024, you can decide to make the election to treat your wife as a US person and file jointly in a later year.  (I think that once you make the election, it is very difficult to un-do.  But you don't have to make the election immediately if you want to try filing MFS instead.)

Ultimately how you file is still a decision only you can make.

@please_help , 

  generally agreeing with the response of my colleague @Opus 17  to this most recent post,  I have a few more  questions on the situation :

(a) is you tax home US or Philippines ?  I ask because  you say this is your second visit , to the island nation, you don't say whether your spouse is in  the USA or in  the Philippines

(b) If she is living in the USA, the choice of using " un documented "  implies  that she would not be able to reenter the US after the  on-site marriage in  her home country..

(c)  Do you have any children and if so where  do they live, are they minors,  etc. etc. ?

(d) Why the  reference to her being the "sole"  beneficiary  when you pass  ( in the long / distant future ) ?

(e) Is your longer-term plan to stay in the USA with her ?

I admit while  some of the questions may seem a bit in the left field, I cannot honestly  consider the benefits / cons of filing status choice without these points being considered.  I also recognize  that ultimately it is a choice  that only you and your spouse can make,  . all we can do is to  point to items you should consider  in your decision making.

I  will circle back once I hear from you .

pk

Greetings, TurboTax Community. I appreciate your continued interest and questions, Opus 17 and pk.

I returned to the U.S. last week after performing the in-person Catholic wedding ceremony my wife dreamed about for all her life. She looked magnificent in her long flowing white dress. She plans to keep the dress forever; while impractical, I now have learned that anything and everything is viewed as a "memory" in Filipino culture - hence why they take a billion photos and selfies wherever they go.

During yesterday's video chat, my wife confirmed that she intends to become a U.S. citizen. Once USCIS grants her a visa, she will move wherever I am. However, Immigration is so far behind that no decision is expected before mid-2026 (visa applications submitted in March 2024 have yet to be acted upon). Until she receives a visa, she will remain in her native Philippines.

When I die, my wife will inherit my Roth 401k, Roth IRA, small life insurance and annuity policies, and possibly a survivor's benefit in addition to spouse's Social Security income. (Due to my chronic relocating for work, I have not purchased a house. If/when we do, she will be the sole owner after my passing.) No trust currently exists as we wait for the Philippine Statistics Authority to recognize our U.S. marriage so she can legally change her name. Due to her lack of income, my wife does not own foreign equities.

My tax home is the U.S. It is only when I reach retirement age that we may consider relocating permanently abroad. I have filed an annual U.S. tax return for 20+ years.

Please forgive me; my "undocumented live-in caretaker" reference relates to my wife working full-time as a domestic servant in the Philippines without any employment documentation submitted to the Philippines Bureau of Internal Revenue.  My wife has been fully employed for 20+ years, but the Philippine government possesses no employment earnings record for her (this is common for low-skilled domestic laborers in the Philippines).

We do not have any children. This may change only after my wife is able to relocate with me in 2026 (or later).

When I pass, in the absence of children (either biological or adopted), my wife will be my only nuclear family member. Accordingly, she will inherit all that I have saved/prepared for her. Reading today that an "inheritance tax" is state-specific (https://turbotax.intuit.com/tax-tips/estates/what-are-inheritance-taxes/L93IUc3sC#GoTo-What-are-inheritance-taxes-), it does not appear that she will be required to file a tax return when she assumes ownership of these assets. Since she will not work for a third-party after immigrating to the U.S., my wife may not need an ITIN or SSN until she takes distributions from these inherited accounts? (Again, I recognize the need for a revocable trust to bypass probate.)

Long-term, she and I are open to relocating anywhere in the world. Without children, I suspect that we could wind up spending our last years in the Philippines - or in an Eastern country - to be closer to her family. This depends on our financials, however: If I must work until my death to sustain a roof over our heads, food on the table, and clothes on our backs, we'll remain in the U.S. While I am a huge saver, no amount of savings can make up for a poor economy (i.e., high inflation) or market crash.

Given these details, it doesn't appear that assigning an ITIN for my wife is an urgent need and I can continue to e-File as "Married, Filing Separately" knowing that my wife has no cause to file until my passing. Does this seem accurate? (A SSN is still required for my wife to be added to a bank account and/or issued a credit card.)

To clarify, does your wife have a SSN currently?

@please_help , given your current  long-term plans ( and unless something changes/evolves ), I would generally agree with you that you may not need an ITIN for her.  However, if her plan is to become a US citizen ( directly through marriage or via being a GreenCard for five years ), she would be eligible for SSN.  Personally  ( and I recognize  I am not in your shoes) I would make decisions on these tax matters based on longer term goals.

My best wishes  for a very Happy Married Life  ( I had 55 years  with my wife till she passed  due to incurable lung cancer ).

Is there more I can do for you ?

pk

Yes, keep in mind you may file married filing separately but if your wife does not have a SSN or ITIN, you won't be able to file electronically.  Here is how to file.

1. Prepare your return in TurboTax.
2. When you get to the Let’s get ready to e-file screen, select File by Mail.
3. TurboTax will give you an error regarding the missing Social Security number or ITIN for your spouse. Proceed to print with the error, but write Nonresident Alien or NRA in the space for your spouse’s Social Security number before mailing in your return.
4. Mail the return to the address on the instruction sheet that prints with the return.

Filing Basics 

@please_help 

Greetings, TurboTax Community. Once again, I appreciate your interest and questions, DaveF1006 and pk.

I do think the "long-term" perspective is the most efficient path in most constructs. As pointed out in the "Filing Basics" link within DaveF1006's second message, "A spouse who is Married Filing Separately is not required to provide the Social Security card for the other spouse, although the return cannot be e-filed without the spouse’s Social Security number." Therefore, if my wife is currently eligible for a SSN through our marriage, perhaps I will visit a Social Security Office 'now' to seek a SSN for my non-resident alien spouse. If the Social Security Office assigns a SSN to my wife, it still won't prevent my filing "Married Filing Separately" or "Married Filing Jointly" given my wife's lack of income. With an assigned SSN, would this permit me to resume e-filing annual tax returns (regardless of classification)?

Believing that I can change my filing status between "Married Filing Separately" and "Married Filing Jointly" from year to year, I will plan to test both options in the TurboTax software and file the classification that is most beneficial (though short of significant tax reform, no meaningful difference in outcome is foreseen between them).

If the course of action I state above is just and actionable, then, again, I appreciate your insight and advice on this sensitive topic, Opus 17, TomD8, DaveF1006, and pk.

Finally, belated congratulations to pk for a "very Happy Married Life" spanning "55 years"! My age will not allow my wife and I to attain such an enduring milestone; however, every moment we are together feels like I/we are in our youth. I will remain contented by each moment we share together for love transcends all time.

Yes, if your wife is assigned a SSN, you will be able to file electronically.  Just a word of caution however, if you choose to file Married Filing Jointly in the first year and then decide to File Married Filing Separate in later years, "neither spouse can make this choice again in any later tax year, even if married to a different individual – it is a once-in-a-lifetime choice".

Please read the section Ending the Choice in this IRS publication. You are only allowed to make this switch once.

Thank you for sharing your expertise, DaveF1006.

While I may be wrong, I interpret "neither spouse can make this choice again in any later tax year, even if married to a different individual – it is a once-in-a-lifetime choice" as meaning that the choice "to treat the nonresident spouse as a U.S. resident for tax purposes" cannot be replicated after the presence of any scenario under the article's "Ending the Choice" paragraph. Earlier in the article reads the following:

"You must file a joint income tax return for the year you make the choice (but you and your spouse can file joint or separate returns in later years)."

After three hours on-hold with the SSA, my call was prematurely terminated by the national SSA agent without assistance. I then called the local SSA office. Since my wife does not have any immigration status in the USA, she is ineligible for a SSN. This, then, returns us back to the original question: To file as "Married Filing Separately" or "Married Filing Jointly" (the IRS's Interactive Tax Assistant (ITA) blesses each classification). Since https://www.irs.gov/tin/itin/individual-taxpayer-identification-number-itin#alien further confirms that joint filing is possible with an ITIN assigned to my wife and I am unable to file under "Head of Household," I cannot find cause to not file under "Married Filing Jointly" (following Opus 17's Form W-7 advice). Once my wife is permitted to cross the Pacific, we can then request a SSN and discontinue use of her ITIN forever.

If this intent is legally false or invalid, please point out my misunderstanding. Perhaps next year, with an assigned ITIN, I will be able to e-file again regardless of filing status - "Married Filing Separately" or "Married Filing Jointly" (though given our income disparity, I may use the latter every year).

@please_help 

"While I may be wrong, I interpret "neither spouse can make this choice again in any later tax year, even if married to a different individual – it is a once-in-a-lifetime choice" as meaning that the choice "to treat the nonresident spouse as a U.S. resident for tax purposes" cannot be replicated after the presence of any scenario under the article's "Ending the Choice" paragraph. Earlier in the article reads the following:"

This relates to the choice to treat your non-resident spouse as a US resident for tax purposes.  This gets you a lot of US tax benefits, because when you are married filing separately, your tax rates are higher and a lot of deductions and credits are reduced or disallowed.  If you chose to treat your non-resident spouse as a US resident, that choice is generally irreversible, except for certain circumstances.  If you do fit one of the circumstances, and reverse the choice, you can never again choose to treat a non-resident spouse as a resident to get the tax benefits of filing jointly.  

Consider this scenario.  In 2024 your spouse does not work and you choose to treat her as a US resident. She must report all her world-wide income, but she has none, so you get all the benefits of filing jointly and it costs you nothing.  In 2025, she sells some property in her home country for an enormous capital gain that would drastically increase your US tax, so you decide to reverse the choice and file separately.  Since she is not a US resident, she does not have to report the capital gain and pay US tax on foreign income.   Then in 2027, she is back to having no income, so you want to file jointly.  You can't, because you can't take that choice a second time. 

However, that rule only applies as long as your spouse is a non-resident alien.  If she becomes a resident alien, green card holder or US citizen, then all her worldwide income is always subject to US tax, whether she files jointly or separately, and you have the same ability to file jointly or separately as any other married couple under US laws (citizens, green card holders and residents).  

Knowing those rules, if you decide to treat your spouse as a US resident for tax purposes, go ahead.  Follow the procedure to file a joint return and apply for an ITIN.  In the future, you should be able to use the ITIN to e-file.  Just remember that if you make that choice, then all your spouse's worldwide income is subject to US taxation, even if it is earned and paid in a foreign country.  And if she applies for permanent status, one of the questions on the interview is "have you paid any and all US income tax that you have owed?"  And if you do decide to end the choice before she gets residency status, you won't be able to make the choice again for her or a different future spouse.  

Thank you for your clarifying response, Opus 17. The distinction in the "irreversible" choice is the spouse's location, non-resident vs. resident. If non-resident, the choice to classify as a US resident for tax purposes is generally irreversible; if a resident, then we may file jointly or separately as we like...though projecting my spouse with no meaningful income throughout our lifetimes, filing jointly seems the best path forward - both now (while we are separated) and when we may be reunited (praying in late 2026).

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@please_help wrote:

Thank you for your clarifying response, Opus 17. The distinction in the "irreversible" choice is the spouse's location, non-resident vs. resident. If non-resident, the choice to classify as a US resident for tax purposes is generally irreversible; if a resident, then we may file jointly or separately as we like...though projecting my spouse with no meaningful income throughout our lifetimes, filing jointly seems the best path forward - both now (while we are separated) and when we may be reunited (praying in late 2026).

---

Yes, I think we have a common understanding.  The irreversibility part applies to a non-resident alien spouse.  Once the spouse is a US resident (passes the substantial presence test), or has a green card, or is a citizen, that rule does not apply and you follow all the normal rules that apply to US residents and citizens. 

Opus 17,

Follow-up question:

When I print and sign the federal tax return, complete/sign the Form W-7 ITIN application, and mail everything to the IRS address for ITINs, how do I go about filing my state income tax return without my wife's ITIN? Do I simply wait for an ITIN document to be mailed to me before e-filing my state income tax (or mailing it, too)?

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@please_help wrote:

Opus 17,

 

Follow-up question:

 

When I print and sign the federal tax return, complete/sign the Form W-7 ITIN application, and mail everything to the IRS address for ITINs, how do I go about filing my state income tax return without my wife's ITIN? Do I simply wait for an ITIN document to be mailed to me before e-filing my state income tax (or mailing it, too)?

---

Probably the best to do is to file a request with the state for an extension, then when you get the ITIN, add it to the state tax return and file it.  You will probably have to file by mail, since generally, state returns can't be e-filed unless you also e-filed the federal return.  But this is also a one time thing, if your wife is still a non-resident alien next year, you can use the ITIN to e-file both returns. 

@please_help , agreeing with my colleague @Opus 17  in that you may want to seek an extension for the filing of the state return ( you still need to pay any state tax liability by the  usual due date  of 15th of April ),  you can indeed file your  state return ( also by mail , just like the federal ) when you file the federal -- just attach a copy of the federal  return and the W-7  ( not the attachments ).  This tells the  State that a request for ITIN is in the process  and therefore they will hold off  processing till ITIN  is issued and the federal return processed.  Note that federal return processing will also be on-hold till the ITIN issuance is in effect.  

 You just have to let the process work its way through.  Only thing that  is certain that  any taxes  paid with the returns will be processed  in  parallel.

Is there more one of us can do for you ?

Thank you for your continued guidance, Opus 17 and pk.

My non-resident alien wife has mailed to me the following:

1. Signed and dated IRS Form W-7
2. Signed IRS non-resident alien spouse statement

3. Signed and notarized IRS Form 2848 (Power of Attorney and Declaration of Representative)
4. Original Philippine passport

I will meet with an authorized civilian at a tax preparation center who will create a certified passport so I do not have to mail the original and wonder when it is will returned to my spouse's foreign address.

Adding another wrinkle: I received a corrected consolidated 1099 for my brokerage. Previously, I "printed" our original federal and state income taxes but not mailed them as I wait to meet with the designated passport certifier. Unable to delete my original tax return in TurboTax, I was forced to amend our federal and state tax returns. TurboTax limits the space available to explain why tax returns are amended, but if a rational human reads the blocks they will understand that no original returns were mailed.

The plan forward:

1. Meet with the tax professional to certify my spouse's original passport

2. Mail the W-7, IRS non-resident alien spouse statement, notarized 2848, amended federal income tax return, and certified passport to the IRS ITIN office

3. Mail the W-7, amended federal income tax return, IRS non-resident alien spouse statement, and amended state income tax return to the state

4. Return the original passport to my non-resident alien spouse

5. Pray for a miracle!

Note: No taxes are due: I am to receive a small federal refund; state is $0

Per my call to the IRS ITIN office, it is backed up 3+ months. I would love NOT filing an extension for the state; if the state will accept only the items identified in #3 above, it would allow my wife to change her middle and surname (we are waiting until after our taxes are accepted)...however, like the federal income taxes, the signature block does 'require' both signatures for a "Married, filing Jointly" return and I do not have a spouse-signed & notarized Power of Attorney and Declaration of Representative (IRS Form 2848) for the state. I suspect I will have to locate the state equivalent form and have my wife mail the signed/notarized version in order to file with the state.

Even though your wife doesn't live in the US or earn income, you may still file Married Filing Jointly regardless.