If you’re a U.S. citizen living in Germany and married to a non US spouse, choosing between MFS vs MFS can feel like solving a tax puzzle (Check the post “MFJ vs MFS — Which Filing Status Is Right for You in 2025?“).
The decision can directly impact your refund, credits, and even whether your spouse’s income is visible to the IRS USA.
This guide explains both options in plain English — when MFJ helps, and when it hurts.

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1. What MFJ vs MFS Mean for U.S. Taxes

• Married Filing Jointly (MFJ): You and your spouse file one combined return. You report both of your worldwide incomes to the IRS.

• Married Filing Separately (MFS): You file your own return, reporting only your own income and deductions.

Because the United States taxes based on citizenship, even if you live abroad, your filing choice matters for how your spouse’s foreign income is treated.

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2. When Married Filing Jointly Makes Sense

✅ Your spouse earns little or no income
If your German spouse doesn’t work or earns very little, combining returns can help you qualify for a higher standard deduction ($29,200 for 2025) and reduce your total tax.

✅ You want eligibility for more tax credits
Filing jointly gives access to:

• Child Tax Credit (CTC) — up to $2,000 per child

• Earned Income Tax Credit (EITC) — if you meet income limits

• Education credits — such as Lifetime Learning or American Opportunity Credit

✅ You’re ready to elect your spouse as a U.S. tax resident
You can make a one-time election under IRC §6013(g) to treat your foreign spouse as a U.S. resident for tax purposes. This lets you file jointly and access all the same benefits as two U.S. citizens.

✅ You want a simpler process
For military families or couples with joint accounts, MFJ often simplifies filing and IRS correspondence — especially when you use a professional expat tax preparer.

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3. When It’s Better to File Separately

⚠️ Your spouse has significant foreign income
If your spouse earns a high German salary, filing jointly could expose that income to U.S. taxation (even if already taxed in Germany).

⚠️ You want to avoid FBAR/FATCA reporting
Filing jointly may require reporting your spouse’s foreign bank accounts under FATCA or FBAR — which can be complex and intrusive.

⚠️ You want to separate tax responsibility
If your spouse prefers not to appear on U.S. returns or if you both manage finances independently, MFS keeps each person’s income separate.

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4. Common Scenarios

Example 1: You earn $60,000 remotely, a non US spouse earns $20,000.
→ Filing jointly could lower your total U.S. tax and qualify you for the Child Tax Credit.

Example 2: You earn $90,000, your spouse earns $90,000 in Germany and pays German taxes.
→ Filing separately avoids reporting your spouse’s income to the IRS. You can still claim the Foreign Earned Income Exclusion (FEIE) on your own earnings.

Example 3: You’re stationed at a U.S. base in Germany, and your spouse is a German citizen with no U.S. connection.
→ MFJ may help maximize deductions, but only if your spouse is comfortable being included in your U.S. tax profile.

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5. How to Elect to File Jointly

If you decide MFJ is right for you, attach a statement to your tax return including:

• Your spouse’s full name and address

• Declaration that you both choose to treat your spouse as a U.S. resident

• Both signatures

You’ll need to get an ITIN (Individual Taxpayer Identification Number) for your spouse by filing Form W-7 with the IRS.

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6. The Bottom Line for those who are married to a non US spouse

For many couples abroad, MFJ leads to higher refunds — but it’s not always the best choice.
If your spouse has substantial German income or you prefer privacy, MFS may make more sense.
At USA Tax, I’ll simulate both options and show you which one saves you more.