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FACTS:

Sheldon and Victoria were married last year and live in England.

Sheldon is a U.S. citizen and has a valid Social Security number. Victoria is a citizen of England.

During the interview, Victoria mentions that she has never filed a joint return with Sheldon. She asks the volunteer what is required to file a joint return with Sheldon. Based on the information provided, Victoria decides she does not want to be treated as a resident alien for U.S. tax filing purposes this year.

Sheldon worked for a U.S.-based company and earned $55,000. Victoria worked part-time and earned the equivalent of $12,000 in U.S. dollars.

Sheldon and Victorias daughter, Riley, lives with them. Riley is eight months old, a U.S. citizen, and has a valid Social Security number.

Victoria has another child from a previous marriage; Adam is five years old and is a citizen of England. Sheldon has not adopted Adam.

Sheldon and Victoria provided all the financial support for Riley and Adam.

1. Victoria does not want to elect to file a joint return with Sheldon. What is the most advantageous filing status for Sheldon?

a. Married Filing Separately

b. Single

c. Head of Household

d. Qualifying Widower

2. On his U.S. tax return, how should Sheldon treat Victorias income?

a. Because Victoria did not choose to file a joint return, Sheldon should report her income as his own on a separate return.

b. Victorias income is not included on the return because she does not choose to be treated as a resident alien.

c. Because their combined income is less than the foreign earned income exclusion limit, Sheldon doesnt need to file a return.

d. Victorias worldwide income must be reported on Sheldons return.

3. In the future, if Victoria and Sheldon choose to file Married Filing Jointly and treat Victoria as a resident alien for tax purposes, this election will continue each year unless suspended or ended.

a. True

b. False

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