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Old 09-08-2004, 05:48 PM
A. G. Kalman
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Default Re: taxes for expat and wife

BusBks wrote:

- quote -

> I'm a US citizen who moved to Australia in 2003. My wife is
> an Australian citizen who has always lived in Australia.
> Since we've been married, we've filed as married filing
> jointly and reported our US and AU income. For 2004, I have
> very little income (a US pension and some interest) and a
> lot of medical expenses. My wife has a lot of AU wages and
> rental property. If I'm reading the rules correctly, I can
> choose not to file jointly but to do it separately and I get
> to report my wife as my dependent if she has no US income. I
> think I'll come out much better this way than filing jointly
> and including her income.
> My questions: 1) am I reading/interpreting correctly?


You may file as married separate. If your spouse has no US
source gross income you may claim a personal exemption for
her. See the instructions for Line 6b of the 1040. She needs
to have a US taxpayer ID (SSN or ITIN). She is not your
dependent.

- quote -

> 2) Do
> I have to let the IRS know that I've made the choice not to
> include worldwide income?


When you file as married separate you are telling the IRS
that you are not including any income of your spouse.

- quote -

> And, 3) if my wife had, for
> example, $200 of interest income from a US bank accout would
> that keep me from being able to claim her as a dependent?


Interest income from a bank savings account that is not
interest from an effectively connected trade or business is
excluded from gross income of a nonresident alien. Your
spouse would not have any US gross income and you could
still claim a personal exemption for her.

--
Alan
http://taxtopics.net

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  #-1  
Old 09-06-2004, 07:28 PM
BusBks
Guest
 
Posts: n/a
Default taxes for expat and wife

I'm a US citizen who moved to Australia in 2003. My wife is
an Australian citizen who has always lived in Australia.
Since we've been married, we've filed as married filing
jointly and reported our US and AU income. For 2004, I have
very little income (a US pension and some interest) and a
lot of medical expenses. My wife has a lot of AU wages and
rental property. If I'm reading the rules correctly, I can
choose not to file jointly but to do it separately and I get
to report my wife as my dependent if she has no US income. I
think I'll come out much better this way than filing jointly
and including her income.

My questions: 1) am I reading/interpreting correctly? 2) Do
I have to let the IRS know that I've made the choice not to
include worldwide income? And, 3) if my wife had, for
example, $200 of interest income from a US bank accout would
that keep me from being able to claim her as a dependent?

TIA

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->
 

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expat, taxes, wife
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