When your spouse isn't a US citizen, $190,000 and $19,000 differ by a factor of ten: don't confuse them

The most overlooked tax difference in a cross-border marriage sits right here: whether your spouse is a US citizen decides whether moving money between the two of you is taxable.

Two situations

Both spouses are US citizens

Gifts and bequests between spouses generally enjoy the unlimited marital deduction. You can give your spouse as much as you like with no gift tax.

The spouse is not a US citizen

That benefit doesn't apply. In its place is an annual exclusion that is very large but capped, plus arrangements like a QDOT trust for inheritance.

The number, and where it's most easily confused

From the IRS Form 709 instructions (tax year 2025):

"For gifts made to spouses who are not U.S. Citizens, the annual exclusion has been increased to $190,000"

And in the same year, the ordinary annual gift exclusion is $19,000.

The two differ by a factor of ten and look almost identical. Seeing $19,000 and assuming that's the cap for a spouse, or seeing $190,000 and applying it to gifts to parents or children, are both common errors.

The same instructions also note that when the total received by a non-citizen spouse in a year doesn't exceed that cap, no gift tax return is required.

❗ This figure is adjusted for inflation each year. Before acting, check the current year's Form 709 instructions rather than using last year's number.

What actions can constitute a "gift"

This is the part people trip over in practice. While one spouse is still a Taiwanese national and not naturalized, all of these can be taxable gifts:

• Adding a name to a deedAdding your spouse's name to the deed means gifting them half of the property (see item 60 of the checklist).
• Large transfersTransferring money into your spouse's personal account.
• Buying a car or shares for your spouse with your own money

None of this is an issue in a household where both spouses are citizens (unlimited marital deduction), but in a cross-border marriage you have to watch whether the amounts exceed that annual cap.

Where community property states intersect

If you live in a community property state (see item 73 of the checklist), certain transfers may be treated as "already half each" rather than as gifts. That intersection is quite technical; don't make the call yourself when the amounts are large.

What to do

1. Confirm your spouse's status firstA green card holder is still a "non-US citizen," which trips a lot of people up. Whether you are a citizen depends on naturalization, not on having a green card.
2. Run the numbers before any large moveBefore adding a name to a property deed or making a big transfer, be sure to check the exemption cap for the current year.
3. Consult when you're near the capA single consultation with a cross-border tax accountant is far cheaper than filing amended returns later.

In one line

A green card doesn't make your spouse a citizen; a non-citizen spouse gets a capped annual exclusion, and something like adding a name to a deed can consume it.

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