US Citizen, Belgium spouse

[PaulF]

What is the proper way to file a return for a US citizen who lives and works in Belgium and recently married a Belgium citizen?

I have filed her returns for three previous years when she was single and living and working in Belgium.

I am assuming I can file married filing separately. Do I put the spouse's name/Belgium citizen on the line asking for the spouse information and just leave the social security box blank?

[erchess]

You can indeed

file her as MFS. However, I would think that you would want her to claim him as a dependent which she can do if he is a nonresident alien with no US Sourced Income. See Ch 5 of Pub 54. However you are going to have to obtain an ITIN or SSN for her spouse.

[appelman]

I think it is a spousal exemption on an MFS return.

I don't believe a spouse can EVER be claimed as a dependent. (This can be an important distinction for state purposes.)

But you should also consider electing for both to be taxed as U.S residents, and then filing joint. In that case, even if the non-resident spouse has income, he will probably be eligible for the foreign earned income exclusion.

[Snaggletooth]

Two Options

Last time I got into this matter and researched it (been awhile) they have two options:

1) File a joint return, with joint return rates, but include ALL income worldwide regardless of its source and regardless of which spouse had the income.
2) File a married but SEPARATE return, including only the citizens' income, but at the MFS rates.

Either way, your software should allow you to enter "NRA" in the space alloted for the spouse social security number.

[PaulF]

Thank you for your input.

I am going to follow Snaggletooth's advice and file separately. My client is well under the exclusion amount when euros are converted to dollars.

[appelman]

Just for the record

Last time I got into this matter and researched it (been awhile) they have two options:

1) File a joint return, with joint return rates, but include ALL income worldwide regardless of its source and regardless of which spouse had the income.
2) File a married but SEPARATE return, including only the citizens' income, but at the MFS rates.

Either way, your software should allow you to enter "NRA" in the space alloted for the spouse social security number.

To file joint the non-resident spouse MUST have an ITIN. If you try it without, they will deny joint status. The return is filed on paper along with the W-7 and supporting documentation. To file separately and claim the spousal deduction, an ITIN is probably also required.

Unless the non-resident spouse has lots of unearned income, the joint option is almost always the best.