Recently married and living in another country

[A_Hantz]

I am an American citizen and I just recently married a German citizen, I moved to Germany in December 2020 (so I definitely meet the living abroad for 330 days rule) . I used to live in Maryland. I don't own any properties in the US. 

Now that we are married, and I am living abroad, I am not sure on how to file my taxes next year. I am leaning towards the status "married filing separately" to not make it too complicated since my spouse doesn't have a Social Security Number or an ITIN. Is that the right move? 

Would I still have to file taxes in Maryland?  I read the Maryland income tax administrative release No.7 and I am confused because it says "Maryland residents who move overseas remain subject to the State income tax as residents. Temporary absences from Maryland do not constitute a change of domicile." however, my move is permanent. 

Would I still be able to file my taxes with turbotax? 

I appreciate any guidance that could be provided, thanks!

[Critter-3]

If you are a US citizen and your spouse does not have a Social Security number or an ITIN and you are not applying for an ITIN with the tax return then you can only file your tax return as Married Filing Separately.  Where asked to enter the spouse's Social Security number enter 999-88-9999.  You can only print and mail your tax return, it cannot be e-filed.  When you print the tax return erase the Social Security number for your spouse and manually enter NRA for non-resident alien.

See this TurboTax support FAQ for the procedure to print and mail a tax return using the online editions - https://ttlc.intuit.com/questions/1944348-how-do-i-print-and-mail-my-return-in-turbotax-online

Your spouse would only need to report their income if you were filing your tax return as Married Filing Jointly, applying for an ITIN with the tax return and you would be providing a statement with your tax return that you want your Nonresident Alien Spouse Treated as a Resident.  See IRS Publication 54 Tax Guide for U.S. Citizens and Resident Aliens Abroad pages 6 and 7 - https://www.irs.gov/pub/irs-pdf/p54.pdf

Go to this IRS website for ITIN information - https://www.irs.gov/individuals/international-taxpayers/general-itin-information

[Opus 17]

As a US citizen, you owe income tax on all your world-wide income, even if you are living outside the US.  If you meet the 330 day rule, you can exclude your foreign earned income (income earned from working, from providing a service or selling goods), but you must still file a tax return and pay US tax on any unearned income (IRA withdrawals, investment income, etc.).  If you also pay foreign income tax you can claim an offsetting deduction or credit on your US return.

You are entitled to file jointly if you wish, but that might subject your spouse to US tax.  To file as married filing separately without a tax number, you will probably need to use a fake tax number to get Turbotax to print, then cover it with white-out, write "NRA" in the space for the tax number, and sign and mail your return.  You will want to use a mailing service with tracking and proof of delivery.  You can't e-file if your spouse does not have a tax number.

Also, you will need a US bank account to receive any refund (or else the IRS will mail a paper check to Germany).  You will also need a credit card with a US address to pay the Turbotax fees, since Turbotax is technically not allowed to be used overseas.  Or, you could buy a copy on CD from a US vendor, but they might not ship overseas either.  You might have to get a US friend to buy a copy for you and mail it to you.  

[Opus 17]

Regarding your state income tax, read this about "domicile."

https://www.marylandtaxes.gov/forms/Tax_Publications/Administrative_Releases/Income_and_Estate_Tax_R...

You can only have one domicile at a time.  It is possible to be away from your domicile for a long time without changing your domicile, and changing domiciles requires active steps to abandon your old domicile as well as steps to establish a new domicile.  

If you have abandoned your domicile in Maryland and established a new domicile in Germany, you don't owe Maryland state income taxes. But if audited, you will have to show the steps you took to abandon your domicile.  That might include canceling your lease or selling your home, but you may also need to cancel your voter registration and drivers license, show that you changed doctors, etc.  Hanging on to your MD drivers license and voter registration "just in case" could be used by Maryland to claim you did not actively abandon Maryland as your domicile.