US & Chinesse Tax Returns?

Question

I have this client that got married to his wife. She will be moving here. However, she is currently in China and he is living here. I understand the US part of filing the return and capturing her income and taxes paid from China. What about her? When she files in China, will she have to report married. I read that China taxes worldwide income, however does she have to include her husband from the US? If so, then his income would be included, but if she doesn't have to report him then would she have to report his income?

Thank you

Answer 1

She will need to talk to a tax preparer in China.

By the way, your client several valid ways to file.

1.  MFJ, both incomes, both exemptions, possibly forms 2555 and/or 1116.

2.  MFS, his income only, both exemptions if she has $0 US source income for the year and is considered an NRA.

3.  MFS, his income only, his exemption only.  This is done when either she has US income or is a US resident alien (also taxed on worldwide income) or if he needs to file and doesn't have a number for her yet.  If he doesn't have a number for her, this would have to be a paper only return.

4.  (Rare)  If she is an NRA and he has a minor child, he may be eligible to file as HOH.

Answer 2

She should consult with a local expert in China.  China doesn't differentiate between single and married taxpayers, so her husband's US income isn't subject to Chinese taxation.  I can pretty much guarantee that you won't be preparing any Chinese tax returns.  They're prepared in Chinese so unless you read and write the language, you'll be pretty useless to her with that.