US taxes while living abroad
How do a foreign spouse and children change your US taxes abroad?
Last reviewed .
A US citizen married to a nonresident alien can elect to treat the spouse as a US resident and file jointly, but both spouses then report worldwide income until the election ends or is suspended. The spouse needs a Social Security number or ITIN. Claiming the foreign earned income or housing exclusion also limits the additional child tax credit. A licensed tax professional should apply these rules to your own facts.
Key facts
| Fact | What the source says | Source |
|---|---|---|
| Who can elect | One spouse a US citizen or resident, the other not, at year end | Official source |
| Effect | Both spouses report worldwide income for that year and later years | Official source |
| Identification | The spouse needs an SSN or, if not eligible, an ITIN through Form W-7 | Official source |
| How to elect | A statement signed by both spouses, attached to the joint return | Official source |
| End of the election | Revocation, death, legal separation or inadequate records. It cannot be made again | Official source |
What does the nonresident spouse election do?
The IRS explains that when one spouse is a US citizen or resident and the other is not at the end of the year, the couple can choose to treat the nonresident spouse as a US resident for the full year. Both are then treated as US residents for federal income tax. Each reports worldwide income for that year and later years.
Neither spouse can generally claim tax treaty benefits as a resident of a foreign country, though a saving-clause exception may allow some benefits. It is a long-term choice, not a filing-status button.
How is the election made, suspended and ended?
You attach a statement signed by both spouses to the joint return for the first year. It can also be made on an amended joint return within the time limits the IRS describes. The election does not apply in a later year when neither spouse is a US citizen or resident at any time, and it resumes when one becomes a resident again.
It ends if either spouse revokes it, at either spouse's death, on legal separation, or for inadequate records. Once it ends, neither spouse can make it again, even with a different spouse.
What if you do not make the election?
You generally file as married filing separately. The IRS notes that you may be able to file as head of household if you pay more than half the cost of keeping up a home for a qualifying person other than the nonresident spouse. Publication 501 has the details.
How does the exclusion affect the child tax credit?
Publication 54 explains that claiming the foreign earned income exclusion or the housing exclusion or deduction affects the additional child tax credit, the refundable part. A child tax credit estimate needs the tax year, each child's facts and identification number, your income, filing status and any exclusions. Rules for 2025 and later years changed, so read the instructions for the year you file.
Checklist before you start
- Confirm each spouse's citizenship and residence status at year end.
- Check whether your spouse has an SSN or needs an ITIN.
- List your spouse's worldwide income and assets for the year.
- Collect each child's birth details, Social Security number and residence.
- Note whether you plan to claim the exclusion or the foreign tax credit.
- Find any earlier year in which the election was made or ended.
Common questions
Can I file jointly with my non-American spouse?
Yes, if you make the election to treat the nonresident spouse as a US resident. Both of you then report worldwide income.
How does my foreign spouse get an ITIN?
A spouse who is not eligible for a Social Security number applies for an ITIN with Form W-7.
Can we undo the election later?
Either spouse can revoke it, but once it ends neither spouse can make it again.
Can I get the child tax credit while living abroad?
Possibly. Claiming the foreign earned income or housing exclusion limits the refundable additional child tax credit. Check that year's instructions.
Official sources
- Nonresident spouse. IRS.
- About Form W-7. IRS.
- Publication 54, Tax Guide for US Citizens and Resident Aliens Abroad. IRS.
Sources checked . Official pages change. Use the source over this summary if they differ.
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General information from IRS and FinCEN publications, not tax advice. Rules depend on your facts and the tax year. Confirm with a licensed tax professional before you file. US Expat Desk is a private company. We are not affiliated with the US government, the State Department, or the FBI.