Quick question for filing 2017 tax return while spouse is still in progress for AOS

[bbf3562 27]

Hello everyone!

 

I am using TurboTax Premier version to file my 2017 tax return. Me and my wife got married on August 26 2017. She have SSN for work purpose, EAD/AP card, and state ID. She is going to have her green card interview on February 8. She doesn't have job yet and is not earning any income except me giving her allowance every month. She hasn't open her new account in bank yet. My questions is should I add her Married Filing Jointly or Married Filing Separately? Should I apply her as resident or non-resident? Does she is considered dependent? Does she need to declare her previous employment salary from her country in early 2017 before she came here on August?

Edited January 23, 2018 by bbf3562

[geowrian 22,336]

Whether to file as MFS or MFJ is a personal situation. Both are valid options...you need to determine which one is better for your tax situation. Typically, MFJ would provide for the least tax liability, but run both numbers and compare.

 

If you do MFS, you may be able to claim her as a dependent. She can be considered a non-resident alien (NRA), and since she had no US income, doesn't need to even file.

 

If you do MFJ, she would elect to be treated as a resident alien. This is performed via attaching a letter stating as such in accordance with IRS rules (https://www.irs.gov/individuals/international-taxpayers/nonresident-alien-spouse). You would need to declare her worldwide income for the entire 2017 tax year, but then you can apply the Foreign Earned Income Exclusion and/or Foreign Tax Credit to exclude a large portion to all of that (FEIE is up to ~$100k/year). Note that you cannot e-file with this method...there's no way to attach the required election letter.

[Italian_in_NYC 259]

You can do both.

Does she have any foreign-source income or significant foreign assets?

If not, it sounds like the MFJ option might be best (but do check both scenarios).