Jiten:
If you arrived in country prior to 1 January 2006, you should file jointly with your wife, filing either Form 1040A or 1040. You CANNOT claim your wife as a dependent, but filing jointly has the same effect AND allows you to claim a double standard deduction of $10,300.
If you arrived in country AFTER 1 January 2006, you can still file jointly with your wife as resident aliens, and I recommend you do so. If you choose NOT to file as resident aliens, then you must file a dual-status return. However, that is NOT advantageous for you, because you lose that double standard deduction of $10,300 if you file a dual-status return.
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