Introduction
You're a U.S. citizen or green card holder, married to someone who lives in Australia and isn't a U.S. taxpayer. Can you file as Single? Generally, no. If you're legally married on December 31, your spouse's location or citizenship doesn't change that.
You have three paths:
- Married Filing Separately (MFS), the usual default
- Head of Household (HOH) in limited cases
- Married Filing Jointly (MFJ) after a §6013(g) election
When your spouse lives in Australia, that choice also affects Australian income, bank accounts, superannuation and foreign tax relief.
Key Takeaways
- MFJ with a nonresident alien (NRA) spouse requires electing to treat that spouse as a U.S. resident.
- MFS generally leaves the spouse's foreign income off your U.S. return; MFJ brings in both spouses' worldwide income.
- A joint return needs an SSN or ITIN for the spouse; an MFS filer may enter "NRA" in some cases.
- Weigh tax savings against reporting, treaty effects and the election's long-term consequences.
What Does "Nonresident Alien" Mean for U.S. Tax Purposes?
What makes a spouse a nonresident alien?
A non-citizen is generally a nonresident alien (NRA) unless they meet the green card test or the substantial presence test. Publication 519 covers both, plus treaty tie-breaker and dual-status exceptions that can change the result.
Substantial presence requires 31 days in the current year and 183 weighted days over three years. The weighting is current-year days, plus one-third of the prior year's, plus one-sixth of the year before that.
Immigration status is not tax residency
Citizenship, visa type, physical location and tax residency are separate questions. A spouse on a U.S. visa may still be an NRA. A green card holder is generally a U.S. tax resident.
What happens when the spouse stays an NRA?
- The spouse is taxed in the U.S. only on U.S.-source income and certain income effectively connected with a U.S. business.
- Australian wages, investments and pensions generally stay off the U.S. return.
- A spouse with U.S.-source income may need a separate Form 1040-NR, which is distinct from your Form 1040.
Filing Options When Married to a Nonresident Alien Spouse
Don't compare these on the standard deduction alone. Look at eligibility, income reporting, ID requirements, credits, foreign reporting and long-term effects.
Married Filing Separately: the usual default
MFS needs no election. Your return generally covers only your own worldwide income. Special allocation rules can apply to community property and jointly owned income. The spouse's U.S.-source income needs separate analysis.
The trade-off is narrower brackets. For 2026, the 12% bracket for MFS ends at $50,400 of taxable income, against $100,800 for MFJ. Some credits and deductions are also restricted.
On an MFS return, if your spouse has no SSN or ITIN and isn't required to have one, the 2025 Form 1040 instructions say to enter "NRA" in the spouse's ID space.
Head of Household: a limited alternative
If your spouse was an NRA at any point in the year and you made no resident election, you're considered unmarried for HOH purposes. You still need:
- A qualifying person other than the NRA spouse (the spouse never qualifies)
- Payment of more than half the cost of keeping up the home
- That person living with you more than half the year
Federal eligibility doesn't dictate your state position or your Australian filing.
Married Filing Jointly: available by election
MFJ can suit couples where the NRA spouse has little or no income and wider brackets or higher deductions outweigh the extra reporting.
The 2026 base standard deduction is $32,200 for MFJ, $16,100 for MFS and $24,150 for HOH, per Rev. Proc. 2025-32.
It fits poorly when the spouse has substantial Australian income, investments, pensions, business interests or financial accounts.
How the §6013(g) Election Changes Tax and Reporting
What the MFJ election requires
- File a joint Form 1040 for the first election year.
- Attach a statement signed by both spouses declaring that one is a U.S. citizen or resident and the other an NRA at year-end, and choosing full-year resident treatment.
- Include both spouses' names, addresses and taxpayer ID numbers.
- Check the Form 1040 box for treating an NRA spouse as a U.S. resident and enter their name. The 2025 instructions apply this to new and continuing elections; confirm the current year's wording.
Worldwide income comes in
Both spouses' worldwide income enters the U.S. calculation: wages, self-employment, investments, rent, pensions and other foreign items. For an Australian-resident spouse, expect to deal with:
- Converting AUD to USD. The IRS lists a 2025 average rate of 1.551 AUD per USD, though transaction-date rates often apply
- Australian pay records and tax paid
- Superannuation and other pension interests
- Coordinating U.S. reporting with Australian obligations
Superannuation treatment is technical. Get professional review rather than assuming either country's rules.
Calculate benefits, don't assume them
Compare MFJ and MFS using current official figures. For 2026, the MFJ 10% band reaches $24,800 and the 12% band $100,800, versus $12,400 and $50,400 for MFS.
An ITIN satisfies the ID requirement for filing but not every credit. Under new rules, the American Opportunity and Lifetime Learning credits from 2026 need employment-valid SSNs. The Child Tax Credit needs a qualifying SSN for the claimant (one spouse's suffices on a joint return), and the child needs an employment-valid SSN. The EITC requires valid SSNs for everyone involved.
Foreign account and asset reporting may expand
An electing NRA spouse becomes a Form 8938 specified individual, so their foreign assets count. Depending on holdings, other forms may follow: 5471 (foreign corporations), 3520 (foreign trusts and large gifts) and 8621 (passive foreign investment companies).
Form 8938 thresholds for MFJ couples living abroad are $400,000 at year-end or $600,000 at any time. Form 8938 doesn't replace the FBAR (FinCEN Form 114), required when aggregate foreign accounts exceed $10,000 at any time. A §6013(g) election isn't considered when determining FBAR residency, so the election alone doesn't make the spouse a U.S. person for FBAR.
Treaty, foreign tax relief and long-term effects
- Neither spouse can claim treaty nonresident treatment while the election applies.
- The U.S.-Australia treaty's saving clause covers citizens and individuals electing resident taxation, so Australian treaty residence doesn't necessarily end U.S. taxation.
- The Foreign Tax Credit (Form 1116) and Foreign Earned Income Exclusion (Form 2555, $132,900 for 2026) can reduce double taxation. Neither removes reporting duties, and income excluded under FEIE can't also generate an FTC.
The election isn't automatically permanent or reversible. Under Treas. Reg. 1.6013-6, it continues into later years, even if you later file MFS. Either spouse may revoke by the filing deadline. Death, divorce, legal separation or IRS termination for inadequate records can end it, and a termination bars a later election.
SSN, ITIN and the Practical Filing Process
SSN, ITIN or "NRA" entry
A joint return generally needs an SSN or ITIN for the spouse. An ITIN is for federal tax purposes only. It gives no work authorization, immigration status or SSN eligibility.
If you file married filing separately and do not elect joint status, you can often enter "NRA" in the spouse’s taxpayer ID field instead of applying for an ITIN.
Applying for an ITIN from abroad
- Submit Form W-7, generally with the required return.
- A valid passport usually proves identity and foreign status alone. Otherwise, at least two listed documents are required.
- Send it to the IRS ITIN Operation in Austin, use a Certifying Acceptance Agent (including overseas agents), or book a Taxpayer Assistance Center appointment.
- The IRS estimates 7 weeks, or 9 to 11 weeks in peak periods or for overseas submissions.
The W-7 instructions bar e-filing a return using an ITIN in the calendar year it's assigned, so plan on paper. If you need more time, request an extension by the deadline without attaching the W-7.
Eligible taxpayers living abroad get an automatic two-month extension to file, but interest still runs from the regular due date.
A step-by-step workflow
- Confirm both spouses' tax residency.
- Decide which status is legally available: MFS, HOH or MFJ.
- Gather income and asset records.
- Decide whether an ITIN is needed and start the W-7.
- Complete the election statement if electing.
- Prepare Form 1040, and any separate Form 1040-NR.
Your document checklist:
- Marriage details and both spouses' IDs
- U.S. and Australian income records
- Foreign taxes paid
- Bank, investment and pension statements
- Business interests and dependents
- Prior-year returns
Final pre-submission checks
- Currency conversions and taxpayer ID numbers
- Form 8938 and FBAR thresholds
- Credit eligibility and treaty disclosures
- State filing requirements
- Consistency with the Australian return
Keep records of residency, household costs, income allocation and any election or revocation statement. Income tax records generally need three years; FBAR records, five.
How to Choose a Filing Status and Avoid Common Mistakes
A decision checklist
- How much income does your spouse have, and where?
- Does your spouse hold foreign accounts, a business or a pension?
- Does a treaty position matter?
- Are community property rules a factor?
- Are immigration changes expected?
- Do you have qualifying children?
- Which credits do you need, and do they require SSNs?
- FEIE or FTC: which fits better?
- Can you manage the added reporting?
Common mistakes
- Filing Single while legally married
- Assuming marriage makes your spouse a U.S. resident
- Confusing "NRA" on Form W-4 with NRA spouse status on Form 1040
- Omitting foreign income after an MFJ election
- Assuming an ITIN unlocks every credit
- Confusing FBAR with Form 8938
When to get help
If you're comparing MFJ, MFS and HOH, or coordinating U.S. and Australian records, VJM Global offers a free tax consultation. Its U.S.-compliant tax professionals prepare Form 1040 and 1040-NR returns, and the firm serves 250+ Australian businesses. Ask whether they can support your situation before you commit to a status.
Frequently Asked Questions
Can I file married filing jointly if my spouse is a nonresident alien?
Generally only after a valid §6013(g) election. The election brings your spouse's worldwide income into your U.S. tax analysis.
What are my tax options if my spouse is a nonresident alien?
MFS is the usual default. MFJ is available through the resident-treatment election. HOH works if you have another qualifying person and pay more than half of home costs.
Can I file married filing jointly if my spouse has no SSN or ITIN?
A joint return generally requires one. Your spouse may need to submit Form W-7 with supporting documents before the return can be filed.
How do I get an ITIN for my nonresident spouse who lives outside the U.S.?
File Form W-7 with identity documents and, where required, the return. Submit by mail, through a Certifying Acceptance Agent or at an IRS Taxpayer Assistance Center. Expect paper filing.
What does it mean to be a nonresident alien for U.S. tax purposes?
It means not being a U.S. citizen and failing both the green card and substantial presence tests. It's separate from visa status or where you live.
Can nonresident aliens claim the U.S. standard deduction?
Generally no, with limited treaty exceptions such as for certain Indian students. If your spouse is treated as a U.S. resident and you file jointly, the joint standard deduction applies.
