If a Green Card Holder "lawful permanent resident" (LPR) files Form I-407 mid-year and is married to a U.S. citizen/resident, the couple can file one MFJ Form 1040 for that year by making a §6013(g) election. Form 8854 is still required and is prepared as of the mid-year expatriation date (the day the individual ceased to be an LPR under §7701(b)(6)). Attach 8854 to the joint return and send a copy per the instructions. IRS+2Legal Information Institute+2
This is a great way to your tax savings (favorable tax rate and double standard deductions) and reduce your tax preparation costs. Make sure your Green Card Holder spouse revoke this election next year so that he/she will not be treated as US resident on his/her worldwide income.
File Form 1040-NR as the return and attach a Form 1040 “dual-status statement” for the resident period.
You cannot file MFJ on a standard dual-status return. IRS
Form 8854 is attached to the applicable income tax return for the year that includes the day before the expatriation date (and you send a copy per the instructions). IRS+1
Because the LPR spouse is a nonresident at year-end (after I-407) and is married to a U.S. citizen/resident, the couple may elect under §6013(g) to treat the nonresident spouse as a U.S. resident for the entire year and file one joint Form 1040.
Then attach Form 8854 to that joint return and mail a copy to the address in the 8854 instructions. The election changes the return type, not the expatriation date used on 8854. Legal Information Institute+2Legal Information Institute+2
Attach a §6013(g) statement to the MFJ 1040, signed by both spouses, electing to treat the nonresident spouse as a U.S. resident for the entire tax year. Legal Information Institute
Report worldwide income for the full year for both spouses (use foreign tax credits as needed). §877A computations still key off the day before the expatriation date; include mark-to-market/deferred-comp outcomes in the MFJ tax. IRS
Attach Form 8854 to the MFJ 1040 and send a copy per the Where to File section of the 8854 instructions (by the return due date, including extensions). IRS+1
If the spouse has deferred compensation or specified tax-deferred accounts, remember Form W-8CE to payors by the earlier of 30 days after expatriation or the day before the first distribution. Give the form to each payor; keep proof. IRS
A §6013(g) election persists into later years until revoked or terminated—plan the revocation on the next year’s return if you don’t want ongoing resident treatment. Legal Information Institute
Expatriation date for a long-term resident is the date LPR status ends within the meaning of §7701(b)(6) (e.g., abandonment via I-407). Form 8854 tracks certification/valuations as of that date, and income inclusion items under §877A are measured the day before that expatriation date. IRS
Notice 2009-85 and IRS guidance say you attach 8854 to Form 1040-NR or Form 1040, whichever is applicable, and send a copy per the instructions—so when you validly elect §6013(g), Form 1040 is applicable. IRS
Dual-status rule: ordinarily, dual-status filers can’t file MFJ, but the Code and regs allow a joint return if you elect to treat the nonresident spouse as a resident under §6013(g) or (h). IRS+1
☐ Prepare MFJ Form 1040 and attach a signed §6013(g) election. Legal Information Institute
☐ Compute §877A items as of the day before expatriation; include in MFJ tax. IRS
☐ Attach Form 8854 to the MFJ return and send a copy per instructions. IRS
☐ If applicable, deliver Form W-8CE to payors on time. IRS
Does filing MFJ change my expatriation date?
No. The §6013(g) election only changes the return filing posture. 8854 still uses the mid-year expatriation date (the day LPR status ended). IRS
Do we e-file 8854?
Attach 8854 to the applicable return (paper or e-file, depending on software capability) and send a paper copy per the instructions’ Where to File section. Keep proof. IRS
What if there’s deferred comp or an IRA?
Mind the W-8CE notice deadlines; many items are deemed distributed or have special withholding regimes under §877A. IRS+1
Notice 2009-85 (expatriation date and “day before” rule; where 8854 attaches). IRS
IRC §6013(g) and Treas. Reg. §1.6013-6 (nonresident spouse treated as resident; joint return). Legal Information Institute+1
IRC §7701(b)(6) (LPR definition / residency). Legal Information Institute
IRS Publication 519 and IRS dual-status page (can’t file joint unless you make the election). IRS+1
Form 8854 instructions (attach to applicable return; send copy; filing mechanics). IRS+1
Form W-8CE instructions (30-day notice to payors). IRS
This material is for general informational and educational purposes only and does not constitute legal, tax, or accounting advice. Reading it does not create an attorney–client relationship with CHI Border Inc. or Fujimoto Law Corp. You should not act or refrain from acting based on this content without obtaining advice from a qualified professional who is familiar with your specific facts. Laws, regulations, and administrative guidance change, and information here may not reflect the most current developments; no representation or warranty is made as to accuracy or completeness. IRS notice: any U.S. tax advice contained herein is not intended or written to be used, and cannot be used, for the purpose of avoiding penalties under the Internal Revenue Code.