I married a Scottish las last month. I want to file married/jointly as I feel it will be advantageous. I realize I will have to file a w-7 with our return as she can't get a SSN as of yet. She made 9000 pounds over there this year, however she won't get her tax documents from the UK govt until March because that is how their system works. March to March. So my question is two parts. Do I have to include her income on our return if she has already paid tax to the British govt for 2008? Also If she does how do we convert it to dollars for our 2008 return?

As you may see by reading between the lines, I'm trying to stay in the lower tax bracket, her income will theoretically move it to the next one.

Thanks

1. You will both report worldwide income. For foreign earned income, you will claim foreign tax credit or foreign earned income exclusion. Read: Your U.S. Tax Return: U.S. Citizen or Resident with Foreign Income

2. You can report your UK income based on your payslips or bank statements.

3. you will attach W7 for your spouse with your tax return.