More beneficial - married filing jointly or separately?

[lizka 3]

Hi everyone, so my husband got his permanent residence in August 2012. He worked in Spain until June 2012. I called the IRS and spoke with a specialist who told me there are to ways to file - jointly would require we include his income from Spain on my 1040 and his stipend which he has received from August 2012 (he has been attending university on scholarship). The second option, is to file married filing separately which will allow him to file a Dual Status Tax Return - which will not include his worldiwde income, only the stipend for the university (this stipend was used for living expenses and for supplies for school). Also he moved from Spain to Ohio (where I am studying on scholarship) and then to Providence (where he is studying on scholarship) Can we use these moves as write offs and which choice is the most lucrative so he doesn't have to pay an obscene amount for his stipend.

Thanks ya'll :-)

[Nich-Nick 3,354]

Usually married filing jointly gives you a better deal. His Spanish income will be reported, but he will qualify for exclusion of his foreign income. (IRS Form 2555). Do your return both ways. Your taxes will be generally higher than previously because of marriage, so taking the extra allowance and standard deduction of a spouse without his foreign income being taxed is most often the one that works out best.

Don't forget to compare total tax on

One joint

Vs.

His separate + your separate

The moves aren't write-offs.

Edited January 17, 2013 by Nich-Nick