Our daughter-in-law is a Guatemalan citizen and a ‘green card’ holder since 2014 (the year she married our son- a U.S. citizen).
They are foreign missionaries and have lived in Guatemala since 2015. She works for a U.S. non-profit that employs her for services rendered solely in Guatemala.
As such, I believe she fell from ‘resident alien’ to ‘non-resident alien’ status in 2015 and is not subject to self-employment taxes. She does have a SSN. The taxes filed for 2015 & 2016 were “married-filing jointly”, but did not list her income. Wouldn’t have made a difference tax-wise since they are well below the foreign exclusion threshold.
I believe the 2015 & 2016 Taxes need to be amended to have our son file as ‘head of household’ or ‘married filing separately’. Do I have the correct interpretation ? Any other considerations ?