My wife is now a Resdient Alien for tax purposes under the 5-year rule, and I am a Non-Resident Alien. We would like to file jointly this year, which seems easy enough if I choose to be treated as a Resident Alien for taxes.

The problem is I didn't realize that our status would change this year, and submitted an 8233 to my university/employer, so now have a 1042-S. To make things even more complicated, I've exceeded the allowable income under the tax treaty, so now my whole income is taxable (so I have a W-2 for the balance that exceeds the treaty).

My questions are:

1) Should we file a joint return, along with a letter authorizing that I be treated as a Resident Alien, and include the income from the 1042-S on line 21?

2) Since I exceeded the treaty amount, should I attach the 1042-S to the return, but NOT the 8233, since I cannot claim the treaty, and the income is now taxable? And is there any other action necessary to indicate that I am NOT claiming the treaty?

Thanks in advance...there isn't any information I could find on the IRS site about what to do with a 1042-S if you are no longer claiming the tax treaty.

BL

BL:

I believe you are mis-reading the tax treaty. Please tell me from which country do you come.

We're both from Canada. I was told by my university that I must keep my income from all U.S. sources below $10,000, otherwise all of my income would be taxable. I actually made around $11,600 in 2011, so have a 1024-S for $10,000 (no taxes withheld) and a W-2 for $1,600 with about $80 withheld.

The University is correct: that is a unique provision of the U.S.-Canada Tax Treaty.

Since you HAVE exceeded the $10,000 threshold, go ahead and file jointly, claiming income on BOTH the Forms W-2 and 1042-S.

Enter the income amounts on Line #7 of Form 1040, and attach both the Forms 1042-S and W-2 to the tax return before you mail it.

Thanks very much! So just attaching the 1042-S (& W-2) will suffice, with no explanation or other forms necessary?