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    Constraints on filing joint tax returns with foreign income

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    DeWayne is a U.S. citizen and resident. He spends much of each year in the United Kingdom on business. He is married to Petula, a U.K. citizen and resident of London.

    DeWayne has heard that it is possible that he can file a joint income tax return for U.S. purposes. If this is so, what are the constraints he should consider in making any such decision?

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    Solution Preview

    DeWayne has the choice of filing jointly or separately in the US. If both spouses elect to file jointly in the US, then both will report their worldwide income on the US tax return. That will include her separate UK income. It is an election on a year by year basis, and can be changed in any subsequent year.

    There may be a cost ...

    Solution Summary

    The solution explains the options available to DeWayne and Petula including including possible consequences.