Most of the questions swing around the idea that both expat spouses are American citizens or that the American one is making all th money. My case it a bit different.

My Thai wife makes quite a bit of money and follows all the tax laws of Thailand. She is not a green card holder or US citizen in any way. She has only been to the US once for a short visit. I am between jobs and have no income... maybe some later this year but well under the 82,400 foreign deduction.

Ive filed every year so all my taxes are current. Can I file married filing separately and just be done with it ? Would she have any tax liability with the IRS ? It would seem rather silly if she did. Just cause she married me, now she would have to pay US tax? :eek:

Can someone please clarify how the IRS treats this situation ?

David

David:

Yes, you can file Married Filing Separately. If all of her income is Thailand-sourced, and she chooses NOT to file jointly with you, then she has NO TAX LIABILITY to the U.S.

The IRS may require that you get her an ITIN (Form W-7), but there is no requirement that she pay taxes to the U.S. if all of her income is from Thailand.