I am from India and currently on H1-B for last 5 years. I have been filing 1040 (with status as single) for my tax returns . Last december(07), i got married. My wife is still in Qatar and she is still working. She already has a H4 Visa but has never visited usa.She will be joining in April'08. I had following questions.
1) how do we need to file?
2)does she has to show her income.(in Qatar , incomes are not taxable, atleast for working class)
3)i also have a bank account in india, do i need to submit how much interest i have earn on that account.
Thank You.
Regards,
mnm

1. For 2007 you can file as Married Filing Jointly even if your wife has never been to the U.S. In that case, both of you will have to declare their world wide income. If you have any foreign income, and on that income you paid taxes in the foreign country, then you can claim foreign tax credit and/or earned income exclusion.

2. Yes you must declare India bank account interest even if you don't file as Married Filing Jointly.

3. Since your wife does not pay income tax in Qatar, she won't get any foreign tax credit. I am also not sure if she will qualify under Earned Income Exclusion since Qatar is not her tax home. So may be it is better that you file a separate tax return.