The scenario
One spouse in US (citizen, GC, or visa), one in India. How should the couple handle US and Indian tax filings?
Most common cross-border family scenario. Many couples leave money on the table by defaulting to MFS (Married Filing Separately) without modeling alternatives.
Filing status options
Married Filing Separately (MFS) — Default
File your own US return with MFS rules. Spouse's income not reported.
Pros: Spouse's Indian income stays out of US system. Spouse doesn't need ITIN.
Cons:
- Higher tax brackets
- Many credits/deductions phased out (CTC, EITC, Saver's Credit)
- Standard deduction limited
- Lower IRA contribution limits
Married Filing Jointly (MFJ) with §6013(g) election
Elect to treat non-resident-alien spouse as US resident for entire tax year. File jointly.
Pros:
- Doubled standard deduction (~$29,200 for 2024)
- Better brackets
- All credits available
- Often saves $2K-$10K in tax
Cons:
- Spouse's worldwide income reportable to IRS
- Spouse needs ITIN (or SSN if eligible)
- Election binds you until revoked
- Spouse's FBAR/Form 8938 obligations begin
- Permanent — revocation has consequences
Head of Household (HoH)
HoH if you have qualifying dependent and "considered unmarried" — spouse didn't live in your US household for last 6 months and you maintained home for qualifying child.
Rare to qualify but possible.
When to elect MFJ via §6013(g)
Run numbers. MFJ wins when:
- US income is moderate-to-high
- Spouse's Indian income is modest (< $50K equivalent)
- FTC for Indian tax fully offsets Indian-portion of US tax
- Want to claim CTC, AOTC, other credits
MFJ loses when:
- Spouse's Indian income is large and Indian rate low (US adds tax)
- Spouse has complex Indian assets (PFIC, foreign trust)
- Prefer to keep spouse's data outside US system
ITIN for spouse
If spouse doesn't have SSN, get ITIN via Form W-7.
ITIN process:
- Submit Form W-7 with first joint return (paper file, can't e-file with new ITIN)
- Include passport copy (certified or originals)
- Or use IRS-Authorised Acceptance Agent in India
Our pricing: $200 per ITIN.
Worked example
Vikram on H1B in California earning $150K. Wife Riya in Bangalore earning ₹15 lakh ($18K) with Indian investments.
MFS scenario:
- Vikram's US tax (single brackets): ~$28,000
- No CTC (no qualifying child yet)
- Net US tax: $28,000
MFJ scenario:
- Joint income: $168,000
- Standard deduction: $29,200
- Joint tax (MFJ brackets): ~$22,000
- FTC for Indian tax: ~$3,500
- Net US tax: $18,500
Savings from MFJ: $9,500
But Riya now reports Indian salary, bank accounts (FBAR), assets (Form 8938). Becomes US tax person for year.
Cost-benefit: $9,500 saved vs increased compliance + complexity. Most couples in this profile would pick MFJ.
Both US persons
If both US citizens/residents, MFJ straightforward. No §6013(g) needed.
If one US citizen and other GC holder, both have worldwide income. MFJ usually beats MFS.
When you have children
CTC ($2,000 per qualifying child) requires SSN. Indian-born children:
- US citizen parent → child is US citizen → SSN
- GC holder parent → child generally not US citizen → ITIN
ITIN-only children qualify only for Credit for Other Dependents ($500), not full CTC.
US citizen child with SSN: full CTC.
Practical advice
- Model both scenarios in year 1
- MFJ if spouse's Indian income is modest
- MFS if spouse has complex Indian assets
- Get ITIN early if going MFJ
- Plan child SSN/ITIN before birth or naturalization
- Revisit as circumstances change
Common cross-border marriage mistakes
- Defaulting to MFS without modeling MFJ
- Missing §6013(g) requirements (must attach formal election)
- Forgetting spouse's FBAR/8938 obligations after MFJ
- Not getting ITIN for non-US dependents
- Reverting MFJ to MFS later without proper revocation
Explore our complete US Tax Return Guide to understand refunds, filing rules, and IRS procedures for NRIs.