I moved to the US from Ireland in July 2011 to marry my wife and got my Greencard in December 2011. As a result I am a dual status alien for the year 2011. My only income for the year is foreign employment income earned whilst resident in Ireland from an Irish employer (pre April 2011) which is not taxable in the US under the dual status rules. My wife will be filing Married Filing Seperately so that my Irish income is not taxed as part of her return. My question is, do I need to file a dual status return at all given that I have no taxable income in the US for 2011?

I moved to the US from Ireland in July 2011 to marry my wife and got my Greencard in December 2011. “---->Since you have been both a resident alien( Dec 2011) and a nonresident alien before Dec., 2011, you are a dual status alien for US tax purposes. Different tax rules apply for the part of the year you are a permanent resident of the US and the part of the year you are a citizen of Ireland. For the part of the year 2011, you are a US resident alien (after Dec 2011), then, you are taxed on income from all sources, both US source and your world wide income, I mean. Income from sources outside the US(IF you have your Irish source income earned after Dec 2011) is taxable if you receive it while you are a resident alien.However, income from sources outside the US that is not effectively connected with a trade or business in the US is not taxable if you receive it while you are a nonresident alien;the income is not taxable even if you earned it while you were a resident alien or if you became a US resident alien after receiving it and before the end of the year.
“As a result I am a dual status alien for the year 2011. My only income for the year is foreign employment income earned whilst resident in Ireland from an Irish employer (pre April 2011) which is not taxable in the US under the dual status rules.”---->I guess you need to report the foreign employment income earned whilst resident in Ireland as long as the income was effectively connected with a trade or business in the US or it was a US source income;you neeed to file Form 1040 NR/1040NR-EZ. For the part of the year you are a nonresident alien, you are taxed on income from U.S. sources only.However, as a non US rsidnet alien, you are NOT subject to US tax on your Irish income source income, NOT US source(effectively connected with a trade/business in the US) income. For the part of the year 2011, you are a US resident alien (after Dec 2011), then, you are taxed on income from all sources, both US source and your world wide income, I mean. Income from sources outside the US(if you have taxable Irish source income that you earned during 2011) is taxable;THE income is TAXABLE even if you earned it while you were a NONRESIDENT ALIEN before the end of the year 2011.
“My wife will be filing Married Filing Seperately so that my Irish income is not taxed as part of her return.”----> Correct;in this case, your spouse needs to file her return only on her US source and her world wide income if she has. Your Irish/US source income in NOT subject to US tax(es) on her return.As you can see, a dual status alien married to a U.S. citizen or to a US resident alien may elect to file a joint income tax return with his/her U.S. citizen or US resident alien spouse.
“ My question is, do I need to file a dual status return at all given that I have no taxable income in the US for 2011?”----> You must file Form 1040 as you are a dual-status taxpayer who becomes a US resident alien during the year 2011 and who is a U.S. resident on the last day of the tax year(Dec. 2011). You need to write Dual-Status Return across the top ofyour return. ALSO you need to attach a statement to your return to show the income for the part of the year you are a nonresident. You can use From 1040NR as the statement; then you need to enter dual-status statement across the top. Do not sign Form 1040NR. You should file your return and statement with the Department of the Treasury; IRS Center; Austin, TX 73301-0215 U.S.A.
You can also claim foreign tax credit on your Irish tax(es) tha t you paid to Irish taxing authority(ies) on your US federal and state return by filing form 1116. ALSO, you can use Form 1040NR/1040NR-EZ for Certain nonresident aliens with no dependents as the statement, but be sure to mark Dual-Status Statement across the top.

Thanks Wnhough for the detailed response. Unforunately, I think you kind of missed my real question. I know that none of my income is taxable. I am also aware that a US resident (married filing seperately) does not need to file a federal tax return (Form 1040) if their income is less than $3,700. If I file, the return will be blank. Also, I believe the only income you report on the 1040NR as an attached statement would be the taxable income (in my case zero), so this statement would also be blank? So do I need to file a return at all?

“ I am also aware that a US resident (married filing seperately) does not need to file a federal tax return (Form 1040) if their income is less than $3,700. “--->Correct; $3700 for 2011;however, there are some instances when your spouse needs to( may want to) file a tax return even though sh eisnot required to do. For example, she should file to get money back if Federal Income Tax was withheld from her pay, she made estimated tax payments, or had a prior year overpayment applied to this year’s tax or etc. If not, no return needs to be filed.
“If I file, the return will be blank. Also, I believe the only income you report on the 1040NR as an attached statement would be the taxable income (in my case zero), so this statement would also be blank? So do I need to file a return at all?”--->I guess it depends; as you said, your “foreign employment income earned whilst resident in Ireland from an Irish employer (pre April 2011)” is US source or effectively connected with a trade or business in the US then you MUST report it on your 1040/1040A. Frankly, I am NOT sure if the income was NOT taxable as you said. So, as long as you have taxable income , US source or world wide income (taxable Irish income), then as said previously, you need to file Form 1040/1040A.
Resident Alien at End of Year -----“You must file Form 1040, U.S. Individual Income Tax Return if you are a dual-status taxpayer who becomes a resident during the year and who is a U.S. resident on the last day of the tax year, 2011.”
Please visit the IRS website here: Taxation of Dual-Status Aliens

I guess aas long as you paid tax(es) to the Irish taxing authority(ies), the you also neeeed to fiel your US return to calim your foreign tax credit on 1116 and on 1040 or on your state return.

Thanks for the swift response Wnhough.

To clarify, my wife will certainly be filing a married filing saperately return and has income in excess of the minimum limits (circa $20k for 2011). I am the one with zero US taxable income and am wondering if the $3,700 applies to me.

I am certain my Irish income is not taxable in the US. I earned and recieved it when I was only an Irish resident (Irish domiciled also), the company is Irish, the duties were performed only in Ireland, I was hired under an Irish employment contract and I was subject to Irish tax - that's a open and shut case according to the dual status rules.

I don't need to claim a foreign tax credit as I have no US tax to set it against.

I have read the Taxation of Dual Status Aliens information including Publication 519. I know for a fact that none of my income is taxable, but what I don't know is whether I:

1.) Need to report my non taxable income just as a disclosure,
2.) Whether I file returns (both 1040 and 1040NR) that are littered with all zeros just on the basis that I am a dual status alien, or
3.) Whether I do not need to file these returns at all.

Thanks for your insight. I appreciate it is not a straight forward question, but the bottom line is that I have no taxable income in the US for 2011.

To clarify, my wife will certainly be filing a married filing saperately return and has income in excess of the minimum limits (circa $20k for 2011). I am the one with zero US taxable income and am wondering if the $3,700 applies to me.”--->Correct; MFS requires you and your spouse to file independent returns showing your own separate income and deductions for the entire year. According to the IRS, if you and your spouse file separate returns and one of you itemizes deductions, the other spouse will have a standard deduction of zero. Therefore, the other spouse should also itemize deductions. Since you have no any taxabe US source income, you do NOT have to file your return.
“I am certain my Irish income is not taxable in the US. I earned and recieved it when I was only an Irish resident (Irish domiciled also), the company is Irish, the duties were performed only in Ireland, I was hired under an Irish employment contract and I was subject to Irish tax - that's a open and shut case according to the dual status rules.”---> I see.
“I don't need to claim a foreign tax credit as I have no US tax to set it against.”--->I guess so.

I have read the Taxation of Dual Status Aliens information including Publication 519. I know for a fact that none of my income is taxable, but what I don't know is whether I:
“1.) Need to report my non taxable income just as a disclosure, “--->As a US person(after Dec 2011), if the aggregate value of all foreign financial account(s) in Irealnd exceeded $10,000 at any time during the calendar year after Dec 2011, the you need to file Form TD F 90-22.1 to report it to the IRS as info. Return , NOT to pay tax on the foreign bank/financial account(s).
“2.) Whether I file returns (both 1040 and 1040NR) that are littered with all zeros just on the basis that I am a dual status alien, or 3.) Whether I do not need to file these returns at all.”--->Since you don't have any taxable U.S./Irish income, you are not required to pay taxes to the IRS. In such case, your spouse can choose the marriage filing separately for your spouse’s own tax return.

That is interesting about the $10k in a foreign bank account, and good to know, although it does no apply to me.

Looks like I do not need to file a tax return this year.

I guess that means that my spouse can claim a personal exemption for me in her return given that I have no "gross income" for the purposes of the IRC code and will not be filing a return myself.

Although now that I read the tax code, I suspect that this is not the case.

Sec. 2.(b)(2)(C): "a taxpayer shall be considered as not married at the close of his taxable year if at any time during the taxable year his spouse is a nonresident alien"

Notwithstanding Sec. 151. (b): "an additional exemption of the exemption amount for the spouse of the taxpayer if a joint return is not made by the taxpayer and his spouse, and if the spouse, for the calendar year in which the taxable year of the taxpayer begins, has no gross income and is not the dependent of another taxpayer"

Thanks

“Sec. 2.(b)(2)(C): "a taxpayer shall be considered as not married at the close of his taxable year if at any time during the taxable year his spouse is a nonresident alien" --->I guess it indicates a situation in wchich for example, assume that you got married with foreign person, say, on December 4, 2011. Your marriage is registered on your spouse’s country. And she has never been US and you are going to file for green card process situation or so. Then yoru spouse is still NON-US person in 2011 even you married her in 2011. Even in this sort of situation, as long as your foreign spouse agrees to have her world-wide income subject to US taxation. You must attach a joint signed statement attesting to that to your joint return. If she paid any foreign income taxes, attach Form 1116 to your joint return to claim a credit for those taxes.Since she does not have an SSN yet, you need to attach a completed Form W-7 and apostilled copies of her proof of ID to the first joint return. You STILL may file MFS if you wish, but will probably pay more tax if you do.So, when married to a foreign spouse, you must either file under married filing jointly or married filing separately. If filing jointly, it is important to also determine the amount of your own and your spouse's foreign income (if any), as well as your own and your spouse's U.S. income if any.
“Notwithstanding Sec. 151. (b): "an additional exemption of the exemption amount for the spouse of the taxpayer if a joint return is not made by the taxpayer and his spouse, and if the spouse, for the calendar year in which the taxable year of the taxpayer begins, has no gross income and is not the dependent of another taxpayer"----> I guess this provision is NOT directly related to the foreign spouse, dual status alien taxation, issue.