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    chetankumarjain's Avatar
    chetankumarjain Posts: 3, Reputation: 1
    New Member
     
    #1

    Mar 17, 2008, 08:24 PM
    Spouse on H4, changed state from NJ to TN
    Hi,

    I am on H1 and my wife just joined me on H4 in Dec 2007, do I need to file returns jointly or separately. Taxes withheld for NJ and I moved to TN. How should I file taxes and get refunds for state taxes. Please guide.

    Chetan
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
     
    #2

    May 2, 2008, 09:12 AM
    You can file jointly with your wife and you both CHOSE to be treated as resident aliens. This will allow you to claim the $10,700 joint standard deduction plus two $3,400 personal exemption (for yourself and your wife).

    The downside is that you must declare ALL 2007 world-wide income. There are two offsets available, by either claiming a Foreign Tax Credit (Form 1116) or a Foreign Income Exclusion (Form 2555).

    Even with the downside, this is probably the best way for you to file.

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