Hi,

I was on F1 from August 2006 to April 2008, OPT from April to June 2008 and H-1 from June 13, 2008. I am from India and got married on Jan 18, 2009. My wife is also Indian and has been on F-1 since August 2005.

Based on what I have read, I understand that I would be dual status, filing 1040NR as a statement and 1040 for returns. I could use single exemption of $3500 in 1040 along with itemized deductions for state and local taxes.

My questions are:

1. US-India Tax treaty - gives me an exemption of $5,350 as a non-resident and I had claimed it once in 2007. However, I am not sure if I could claim it for 2008. If yes, How?

2. What is standard deduction in 1040, Is it different from personal exemption of $3,500?

3. Will I be eligible for Recovery Rebate?

Thanks in advance! Your help would be greatly appreciated.

MukatA

You can file resident tax return as Married Filing Jointly. You will get standard deduction of $10,900 and exemptions for both of you. Read about H1-B tax filing: Your U.S. Tax Return: The U.S. Visas

AtlantaTaxExpert

All what MukatA says, as usual, is absolutely correct.

The standard deduction for you as a non-resident alien would be $5,450.

If you file as a non-resident, you are NOT eligible for the Recovery Rebate Credit.

If you file jointly with your wife as resident aliens, you BOTH WOULD be eligible for the Recovery Rebate Credit.

moniac

I just needed clarification: Do you have to be married in 2008 to file jointly? I got married on Jan 18, 2009. Please advise.

Five Rings

You can file married if you were married on the last day of the year; so no, you cannot file jointly for 2008