Question for the Money Doctors
Question submitted on Jul 2, 2012.
QuestionI am planning on moving to Ireland in May 2013 and finding a job there, what do I need to know about taxes and tax credits? How much will I have to pay? And when I get married, does my husband have to pay as well, even though he is not a US citizen?
Generally, as a U.S. citizen, your worldwide income is subject to U.S. income taxation, regardless of where you are living.
Once you are married, you cannot file as married filing jointly if either spouse was a "nonresident alien" at any time during the tax year. However, nonresident aliens married to U.S. citizens or residents can choose to be treated as U.S. residents and file joint returns. You and your soon to be husband, will need to determine if the election makes sense for you.
IRS Publication 54 is always a good reference tool for US citizens working abroad. The publication discusses special tax rules for U.S. citizens who work abroad or who have income earned in foreign countries.
IRS Publication 54 discusses several tax provisions that mitigate your double taxation concern, such as:
- Foreign earned income exclusion
- Foreign housing exclusion and deduction
- Foreign moving expenses
- Foreign taxes
- Tax treaty benefits
That being said, please note that the income tax rules applicable to expatriates are very complex and that you would be well served by contacting a CPA/PFS who will be able to help you. Please visit www.findacpapfs.com to find a CPA/PFS in your area.
Congratulations on your move and upcoming marriage.
For additional information visit http://www.360financialliteracy.org/