Hi there,
It's tax season and questions are burgeoning~~
I havebeen reading this board and your answer is truly helpful~~Thanks.
I am a F1 student who is in my 6th year in 2007. I have two more questions:
1) I have read somewhere that we qualify for $5000 treaty exemption even after our status change from F1 to H1 as long as we don't become U.S. permanent resident. I am not positive about this. Hope you can confirm.
2) in the 6th year of F1, if we file as resident alien, are we subject to FICA tax with the treaty in effect? If I file a joint return with my wife who is a F1 nonresident alien, does it mean she also has to pay FICA tax on herincome?
Li

MukatA

Normally, on F1 you are exempt only for 5 years so in the 6th year you file resident tax return and pay FICA taxes on the income. You don't get treaty exemption. You can file a resident tax return.

You can file as Married Filing Jointly and then your wife must pay FICA taxes on the income.
Or you file as Married Filing Separately and your spouse files a nonresident tax return.

mangocherrylili

I heard that 6th year F1 visa holders may elect to continue to be treated as nonresident. Is it true? If it is true, is the decision reversible? (I want to elect to be resident alien for 07 return and nonresident alien for 08 return)
Another question, my wife is working in a company in RI. If her status is nonresident alien, should state disability insurance be withheld from her salary?
Thanks.