Another Tax Filing for a U.S. Citizen & a Nonresident Alien Spouse Situation

[Taxed-Out 0]

As a bit of a twist on the above discussion regarding mixed residency filing for Federal Returns (and in this instance a California FTB Return, too), what would be the answers to:

 

a) Whether an MFJ is possible for the couple and if so what documentation is required to be attached to the return for the spouse who had only Foreign Source income in 2024 (from wages prior to her moving to the U.S.) and no U.S. Source income at all for 2024, while the husband's 2024 income is all u.S. Source wages, or 

 

b) Must the husband file MFS (either entering the wife's SSN issued in February 2025 through SSA & USCIS), or how else, since she cannot get an ITIN with her Immigration Application Pending and the SSN as previously set forth) + No Tax Return filing for the Spouse since she had only Foreign Source income in 2024 (from wages prior to her moving to the U.S.) and no U.S. Source income at all for 2024, while the husband's 2024 income is all u.S. Source wages? 

 

c) Which e-file software, if any, can support either or/both of these scenarios, and what must this all be done and filed manually?

 

d) Other than a signed letter stating that they are electing the the “Nonresident Spouse Treated as a Resident" option for the MFJ, are any other forms required such as the 1116 and/or 2555 for the Federal Return?

 

e) What additional Forms are required for the California FTB Return (which I have been lead to understand does not support an MFJ without both partners being U.S. Residents?

 

The specifics of their situation follows: 

 

Need to file a 2024 Federal Tax Return & 2024 State of California FTB Return for a couple who got married in October of 2024.  

 

The husband is a U.S. Citizen, while the wife is a nonresident alien who came to the U.S. in July of 2024 on a Visitor’s Visa, from Jamaica.  She has a pending application (since January 2025) with the USCIS for Resident Status.  Though the Residency Status is still pending, she has been issued an Initial Work Permit and SSN in February 2025.  

 
When she lived in Jamaica, she was a School Teacher for the last 26 years, however she had no other income other than from teaching in Jamaica, and not even that since she came to the U.S.  
As she was not allowed to work here in the U.S. until the Work Permit and SSN were received, thus she has no U.S. Source of Income for any of 2024.  

 

The husband was regularly employed here in the U.S. during 2024.  

In looking at how to file so as to minimize their 2024 tax liability, the IRS Regs would offer that the husband file as Married Filing Separately (with the wife not filing a return at all) or that they choose the “Nonresident Spouse Treated as a Resident option” and file Married Filing Jointly for the return.  

 
I have been told that the MFS option is definitely doable, however it results in a higher total tax liability (and some, as yet, unexplained consequences for the California Return due to the Community Property Laws), whereas the MFJ results in what could be a much lower tax liability but opens up the issue of “worldwide income” being taxable, though I’m not sure exactly what that would mean in this instance, since neither party had any income for 2024 that was not earned in their respective country of residence.  Would her teaching income then become taxable in the U.S., and how is that determined? 
 

Thanks to all who can provide some guidance. 

[S2N 313]

If she has an SSN you can e-file and don’t have to go through the ITIN process, which requires paper. Doesn’t matter when the SSN was issued. If the wife is included on the return (either by choice or because she’s required to as a tax resident), her income from Jamaica would be taxable in the U.S., but for MFJ it’s usually just a tax on paper in the first year since there will probably be excess withholding from the USC spouse, and both parties end up ahead.
 

You can also definitely file MFJ, but exactly how you do so depends on a lot of factors (i.e. the foreign national might already be a U.S. tax resident since she moved here in July, in which case she might have a filing requirement and it wouldn’t be an option for her not to file. If not you would make an 6013(g) election.)

 

I keep repeating myself on all these threads, but you really should hire a CPA with experience in these topics to do your returns for you, especially the first year. Any time you are dealing with tax law that involves two jurisdictions there are complexities that TaxAct, FreeTaxUSA, TurboTax, and other DIY softwares aren’t going to be able to capture well. It’s not that they can’t do the math, but it’s that you need to know what items go into the box that’s asking you for foreign income, foreign taxes paid, etc. Knowing if your wife is a tax resident already is also a question a professional can help you with.

 

Since she has an SSN, go ahead and file for an extension using FreeTaxUSA or your software of choice, and then look for a CPA. File an extension with the state tax authority as well. 

 

Note an extension is an extension of time to file, not time to pay, so if you think you’ll owe taxes you’ll need to estimate and pay when you file the extension (probably won’t since you’ll be MFJ with foreign income that only lasted 1/2 the year, but worth mentioning.)

 

That’s not an answer to all your questions, but the best answer really is “you should talk to your CPA, and at this stage you probably aren’t filing by 4/15.” Also note nothing above is tax advice; talk to a licensed professional who you pay to get that.

Edited April 6 by S2N