What's the tax rate if my wife work overseas?

[Jerry019]

My wife and I got married overseas last year, and she stayed abroad for the entire year, only coming to the United States on the last day of the year. If we file our taxes jointly this year, she can be considered a tax resident for the previous year. If she earned $60K overseas, and according to the foreign earned income exclusion rule, her income can be excluded (Under120K). If I earned $12K in the United States last year, how is our tax rate calculated? Because her income is exempted, does filing jointly result in a higher tax refund, or is it similar to filing separately? Since her income is exempted, is the refund amount the same as if we assume she had no income or property?

[AmyC]

1. Your tax rate will be based on taxable income.

2. A US Citizen is required to report all worldwide income. Are you both US Citizens or is one or both you dual or non US citizen? Since you are looking at the 2555 to exclude income -if she meets the rules for the days out of the country, you can file the form. It is not based on a calendar year. If the income can't be excluded, you can include it and claim a credit for foreign tax paid on the Form 1116.

Married filing jointly is almost always better. See Is it better for a married couple to file jointly or separately?

3. I can't answer what your refund will be but based on filing joint with only one income, it will be the same however you get to that point.

Please see  Nonresident Alien Spouse | Internal Revenue Service and Resident Aliens | Internal Revenue Service for information on filing and claiming.

References:

• Filing with Non Resident Spouse 
• Tax Tips for Resident and Non-Resident Aliens 
• About Form 2555, Foreign Earned Income
• Where do I enter the foreign tax credit (Form 1116) or deduction?