I have been in the US since 2003 and have filed as a NON-Resident Alien for the tax year 2005 (I was a student). My H1B started Jan 1, 2006 and I got married on Aug 28th 2006. My wife joined me on my way back on a H4 visa.

I know that we can both file as a Resident Aliens.

1. Is our STD Deduction the same? ($10,300)

2. How do I report my wife's Indian Income (in INR) ?

3. Do I report Gross income / Net income of my wife ?

4. I need a W-7 form to get an ITIN for my wife...(do I pick option e - Spouse of US Citizen / Resident Alien)?

5. With all this mess... can I still e-file?

If anyone could help me on this... it would be great.

Thanks!

1) Yes, if you file jointly.

2) You can report it on Line 21 of Form 1040.

3) Gross income.

4) Yes.

5) No, you cannot efile and apply for an ITIN. Sorry!

Thank you Atlanta Tax Expert. Also, how do I convert the Indian rupee into US Dollars before I report it on 1040 ? Is there a specific factor to be used or can I use the prevailing daily forex rate ?

Thanks again for your help!

You can use the prevailing daily FOREX rate, or an average rate for the period of time in question.

Thanks Atlanta Tax Expert! Really appreciate it!

Glad to help!

Not to bother you, but ALL I need is 1040 and the W-7... right ? Because that seems to be easier than i expected, and it is rarely the case!

Thanks again!

Have a great weekend!

You will also need to file Form 1116 to claim the Foreign Tax Credit. I suspect you should get professional help.

If you want my professional help, contact me at david.kempe@<hidden>.