Eric and Tamara are married and live in Geneva, Switzerland.

• Eric is a U.S. citizen and has a valid Social Security number. Tamara is a citizen of Switzerland and has an ITIN for U.S. filing purposes.

• In 2015, Eric and Tamara chose to treat Tamara as a resident alien for tax purposes. This choice has never been suspended or ended.

• Eric and Tamara have a daughter, Kimberly, who was born on November 10, 2020. Kimberly is a U.S. citizen and has a valid Social Security number issued by the due date of the return, including extensions.

• When both of Tamara’s parents died last year, her disabled brother Terry moved in with them. Terry is a citizen of Switzerland and has no income.

• Eric is employed by a Fortune 500 company and earned $50,000.

• Tamara works as a part-time librarian and earned the equivalent of $7,000 in U.S. dollars.

• Eric and Tamara provide all the financial support for Kimberly and Terry. International Scenario 2: 

Test Questions3. How should Tamara’s income be treated on a Married Filing Jointly return? 

a. Tamara’s income does not need to be included on the return because it is paid by a library in Switzerland.

b. Tamara’s income does not need to be included on the return because she only worked part time.

c. They do not have to file a return because their combined income is less than the foreign earned income exclusion limit.

d. Tamara’s worldwide income must be reported on the return.

4. How can the Fishers decide to end their election to treat Tamara as a resident alien? 

a. Revocation in writing 

b. Death of either spouse

c. Divorce or Legal Separation

d. All of the above

5. The Fishers can claim the credit for other dependents for Terry.

a. True

b. False

6. On a Married Filing Jointly return, Eric and Tamara are able to claim which of the following credits for Kimberly?

a. Child tax credit

b. Earned income credit

c. Neither a nor b

d. Both a and b