JimGant

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If applying by mail (even if living in LA, applying by mail would save wear and tear from two trips to the consulate), why not just apply to the Thai Embassy in DC. Their application still asks for "reference" person, not "guarantor." But much more importantly -- the Embassy does NOT ask for notarization of police, medical, and financial statements -- but LA does. Why not eliminate that hassle....while solving your "guarantor" problem at the same time?

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The MasterCard rate you'd get at a (non dynamic currency conversion) ATM machine for 11 May was 49.809. However, since MasterCard doesn't change its rate until very late in the Thai day, you'd probably have gotten the 10 May rate at an ATM machine, which was 49.931.

However, yes -- unless at an Aeon ATM -- you'd pay the 150 baht ATM owner's fee.

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Fixed accounts usually have 15% withheld from interest earned. If you're a resident of Thailand, and have no earned income from Thai sources, this withheld 15% can be refunded from your local Amphur with little fuss (as I understand it -- haven't done it personally). Then, yes, since it is refundable by the Thais, you then have to include this interest earned with your other worldwide income on your Form 1040 . If you're still in the 15% tax bracket, it's a wash. If you've climbed to a higher bracket,  that's the price of being an American.

Interest from Thai bank savings accounts, in my experience, do not have withheld taxes. However, this interest also has to be reported on your Form 1040. And, if your Schedule B also reflects having a foreign bank account(s) over $10k, you might think the IRS would expect to see some interest earnings from this sum of money (only the really bright agent would consider it possibly a one day transitory amount, passing through on its way to buying your new house). The fewer red flags, the better with this game.

If your'e part time in Thailand, the 15% withheld can be considered a final tax, but you can file for the foreign tax credit for this amount. But, you would still have to declare the interest on your 1040. This is a case of, you still have to pay (someone) the 15% tax, but in this case Thailand gets to keep the money (per tax agreement). And double taxation is avoided.

It would be simpler to do this as a resident of Thailand too. However, the IRS rules state that if you're not obligated to pay the tax to Thailand, then you can't pay it (or not ask for a refund), then file for a foreign tax credit. Now, if you had trouble, say, getting a statement of residence (required by the Amphur for the refund), or getting a run around with the Amphur, then I might be persuaded that going the tax credit route was just grey enough in this situation....

Bottom line -- yes, you have to show interest earned on your Thai bank accounts in your Federal tax filing. But, double taxation is avoided -- with a few extra steps.

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Time to consult a pro, I would imagine. Your tax/FBAR situation seems to warrant it.

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No. Only if you decided to get an ITIN number for your alien wife, in order to file your US income taxes "jointly," Then, yes, she is subject to FBAR reporting.

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I doubt anyone has gotten divorced because of FBAR filing requirements. And, as said, if foreign wife has no ITIN, she's not subject to FBAR reporting, nor to US income tax. So, if your wife suddenly inherits a zillion, now subject to US income tax on its earnings, she justs cancels her ITIN (as a rich wife, in this case, no longer makes filing "jointly" advantageous). No more joint Form 1040's, and no more FBAR reporting requirments for the wife.

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$50k is the lowest threshhold -- for a single taxpayer living in the US. For a married expat living in Thailand, the threshhold is $400k, to not include one's house and property. Doubt many of us reading this will be subject to filing the Form 8938.