MFS one a US citizen, one not

[Possi]

My trust fund baby got married last year in South Africa. Her hubby is not a US citizen and does not have a SS#. They do not live here. She has lived in SA for many years, and lives on her trust fund. She does not work and is not allowed to have accounts in SA, so all of her money is here. We have filed a state return for her as well, in VA. We use her mother's local address for all of her business affairs. Her mother is POA.

I know I must file MFJ or MFS, and I will file MFS.

Must this be a paper return? I would think so, since he does not have a SS#.

Are there any other concerns for me that I have not thought about?

[appelman]

If her spouse has no US-taxable income...

she may file married-separate and claim the spousal exemption. But have you considered applying for an ITIN for him and making the election to file jointly and both be treated as residents for tax purposes? This is usually very advantageous when only one has income.

[joanmcq]

If the spouse is treated as a resident, all of his income will be taxable to the US. And the OP did not say her client did not have income, she just doesn't work, hence 'trust fund baby'.

[DaveO]

Joanmcq is correct. One of the requirements of the election is that the non-citizen spouse reports their worldwide income on the return.

[Possi]

Mfs

I'm sure this million-dollar-baby does not want her new hubby on her tax return... at least her MOTHER doesn't, and that is who calls the shots.

So, there is no other option than to file a paper return since he has no SS#, correct?

This is the tax return that always blows my mind. No tax liability. Zero. Millions in stock exchanges that carry a loss, about $25k in dividend income, and almost $20k in investment and legal fees.

Blows me away year after year.

Ok, back to it... affirm me... paper return with a blank for his SS#.

I'm moving tomorrow morning and have not packed my office yet!!!

[Lion]

She can still get her hubby an ITIN and file MFJ if it's better for them, he has little or no worldwide income. You'll have to provide them with your expertise to see which status is more beneficial. And, mother can't see daughter's tax return unless daughter wants her to see it.