US And Brazilian Income tax for married couples.

Hi Phil,

You're absolutely correct the only sensible thing to do is hire an expert on Expat Taxes to handle things for you.

First of all it is important for you to know that there is no Bilateral Tax Treaty between the USA and Brazil, so you have no protection against double taxation under certain circumstances.

Also there is a requirement for you to "report" certain US assets such as real property on your Brazilian Declaração de Impostos de Renda Pessoa Física - DIRPF. Not that they're going to be taxed, but rather to establish their value in order to calculate Capital Gains Taxes that will apply here in Brazil on eventual resale.

While the basic rule of thumb is that you're going to be taxed on / and required to report your US sourced income in the USA, and your Brazil sourced income here in Brazil. As you know as a US Citizen you are required to file an annual 1040 no matter where you live (unless you go through the extremely costly step of renouncing your US citizenship). You are also required to report your Brazilian income on your 1040 as part of your "Worldwide Income". The same holds true for your DIRPF, you must declare your US sourced income here too.

Regarding your wife, if she is a Legal Permanent Resident of the USA, then she is also required to file an annual 1040 just like you.

Also you must consider all of the obligations placed on you (and possibly your wife) under the Foreign Accounts Tax Compliance Act - FATCA and Foreign Bank Account Reporting - FBAR.

The various scenarios in your case are so complex that you can't afford to make any mistakes, this is clearly a case that ONLY an International Tax expert can handle.

Cheers,
James     Expat-blog Experts Team

If my spouse is NOT a Legal Permanent resident. How would that filing look? as 1040 Single? 1040 Married?

Any good recommendations to find an international tax account? (not specific recommendations, more good places where to look)