A: You have two filing options for the 2024 tax year:
Filing as Married Filing Separately (MFS): The couple files separately as MFS, and the former Green Card holder files a dual-status tax return.
Filing as Married Filing Jointly (MFJ): The couple files a joint tax return.
Filing as Married Filing Separately (MFS)
You may benefit from this status if your spouse had significant foreign income during the non-resident portion of the year that you do not want to subject to U.S. taxation. However, this status provides a lower standard deduction and higher tax rates compared to other filing statuses. Certain credits (e.g., Child Tax Credit, Earned Income Tax Credit) are unavailable to MFS filers or non-resident aliens.
If you choose not to file jointly, your spouse has to file a dual-status tax return as a dual-status alien. This requires:
Form 1040: Covers the resident portion of the year, during which your spouse was a U.S. tax resident and required to report worldwide income.
Form 1040-NR: Covers the non-resident portion of the year, during which your spouse was treated as a non-resident alien and required to report only U.S.-source income.
Form 8854 (Initial and Annual Expatriation Statement):
Required if your spouse is considered a long-term resident (i.e., held a Green Card for at least 8 of the last 15 years).
Used to certify compliance with U.S. tax obligations for the previous 5 years and determine if they are a “covered expatriate”, potentially triggering the exit tax.
For more information, please refer to I abandoned my U.S. Green Card this year. How should I file?
Filing as Married Filing Jointly (MFJ)
If your spouse does not wish to go through the dual-status filing and you agree to treat them as a U.S. tax resident for the entire year (i.e., making your spouse’s worldwide income taxable in the U.S. for all of 2024), filing jointly may simplify your tax situation and potentially reduce your overall taxes.
The IRS assumes December 31 as the expatriation date for tax purposes if your spouse was a U.S. tax resident for any part of the year before abandoning their Green Card. This allows you to file jointly for 2024, regardless of the exact date your spouse submitted Form I-407 (Record of Abandonment of Lawful Permanent Resident Status).
❗ Important note: if your spouse is considered a long-term resident (i.e., held a Green Card for at least 8 of the last 15 years), they are required to file Form 8854 to document their expatriation and determine if they are a “covered expatriate”, potentially triggering the exit tax. This requirement exists regardless of the December 31 default date. For more information, please refer to I abandoned my U.S. Green Card this year. How should I file?
Benefits of the Married Filing Jointly (MFJ) status:
A higher standard deduction.
Lower tax rates compared to other filing statuses.
Access to certain credits (e.g., Child Tax Credit, Earned Income Tax Credit) that are unavailable to MFS filers or non-resident aliens.
What happens for the year after expatriation?
In the following tax year, your spouse will be treated as a non-resident alien, reporting only U.S.-source income. If you wish to file jointly again, you both need to make an election under IRC Section 6013(g) to treat your non-resident spouse as a U.S. resident, allowing for MFJ status.
❗ Important note: this election can only be made once and revoked once. If either spouse has previously used this election, even with a different spouse, they cannot make it again.
How to make the election to treat your spouse as a U.S. resident
Eligibility criteria:
One spouse is a U.S. citizen or U.S. resident alien.
The other spouse is a non-resident alien.
Both spouses must agree to make the election under IRC Section 6013(g).
Steps to file the election:
File a joint tax return (Form 1040) as Married Filing Jointly (MFJ).
Attach a signed statement of election to the joint tax return for the first year the election applies, which includes:
A declaration that you are making an election under IRC Section 6013(g).
The full names and Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN) of both spouses.
Note: if the non-resident alien spouse does not have an SSN, they must apply for an ITIN using Form W-7 (Application for IRS Individual Taxpayer Identification Number). This can be filed along with the tax return and the election statement.
A statement confirming that both spouses understand the implications of the election, including that the non-resident alien spouse will be treated as a U.S. resident for tax purposes for the entire year.
The tax year for which the election applies.
Duration of the election
The election remains in effect indefinitely unless:
It is revoked by either spouse by filing a written statement of revocation with the IRS before the due date of the return for that year.
Neither spouse is a U.S. citizen or resident during the taxable year.
Either spouse dies (termination would apply to tax years after the year of death).
The couple divorces or legally separates (effective as of the beginning of the taxable year in which the divorce or separation occurs).
How to revoke or terminate the election
Either spouse must file a written statement with the IRS indicating the intent to revoke the Section 6013(g) election. Once terminated, the non-resident alien spouse reverts to being taxed only on U.S.-source income.
❗ Important note: this election can only be made once and revoked once. If either spouse has previously used this election, even with a different spouse, they cannot make it again.
You can always discuss it with your tax preparer. We will make sure the most beneficial position is taken for you.