Getting Married Abroad? US Tax Rules Expats Often Overlook
Getting Married Abroad? US Tax Rules Expats Often Overlook
Getting married is a life milestone — and for US expats, it also triggers significant changes to your US tax situation that are frequently overlooked.
Your Filing Status Changes
Once married, your US filing options change:
Married Filing Jointly (MFJ) — Can lower your tax rate but brings your spouse's worldwide income into the picture
Married Filing Separately (MFS) — Keeps spouse's income separate but may increase your own tax liability and restrict certain deductions
The choice between these has long-term consequences and should be made deliberately.
Marrying a Non-US Citizen
If your spouse is not a US citizen or green card holder, additional complexity arises:
Electing to file jointly means your non-US spouse must obtain an ITIN and report their worldwide income on a US return
If you choose MFS, you cannot claim your spouse as a dependent
Joint accounts with a non-US spouse may trigger additional FBAR and FATCA reporting
FBAR and FATCA After Marriage
Marriage can change your foreign account reporting obligations:
Joint accounts with your spouse may become FBAR-reportable
The aggregate balance of all foreign accounts — including those shared with your spouse — counts toward the $10,000 FBAR threshold
FATCA thresholds and filing requirements may also change based on marital status
Gift Tax Rules for Non-US Citizen Spouses
The unlimited marital deduction for gifts between US citizens does not apply when the recipient spouse is a non-citizen. Gifts to a non-citizen spouse above the annual exclusion limit may require a gift tax return.
Year of Marriage: A Complex Tax Year
The year you get married is often the most complex from a US tax perspective:
Your filing status for the entire year is based on your marital status on December 31
You may need to report income from before and after the marriage date differently
Foreign tax credits and exclusions may be affected by the change in status
Exemplary helps expat couples navigate the US tax changes that come with international marriages — so the paperwork doesn't overshadow the celebration.
