my client is employed by the french mission to the UN in NYC....a foreign national she had diplomatic status until june 30 when it was surrendered in favor of a green card when she married an american

for the first 6 months she was u.s. tax exempt but paid french income tax on her compensation from the french mission

the spouses must be married filing separately since the french national did not become a u.s. resident until receiving her green card

alternatively, she may elect to be treated as a resident for the full year...this would require reporting her exempt compensation as taxable....this compensation has already been taxed by france.

could this compensation be treated as foreign source income so as to permit a credit for the french tax???.....i believe foreign missions and the un itself are not considered u.s. territory

thanks for any help

regards

bob