At the start of 2005 I was single and employed on an L1, my Fiancee then received a J1 and started work in mid-Jan as a Post-Dpoctral research scientist. We got married on June 25th and my Permenent Resisdent Visa was issued in late August through the US embassy in London. My wife received her Permanent Resident Visa in late Novemeber. When I was preparing our Tax information I noticed that the University that my wife works at has not taken any Social Security or Medicare payments out of her pay. I need the following questions answered.

1. Do we file as married jointly or married separately?
2. Is my wife liable for Social and medicare payments for the whole year or just for the 5 weeks that she had her permanent residency?
3. Does my wife file as a permanent resident or as a non-resident? (she was living in the US from sep 2001- July 2003 on a J1. Then returned on visa waivers from July 2004 until her J1 was issued in Jan 2005 but had no source of income)(We are both UK citizens)

Rgds.

AtlantaTaxExpert

Borderline:

1) The L-1 visa does not put you in exempt status and you meet the Substantial Presence Test. For this reason, you have to file as a resident alien. Your wife's J-1 does put in an exempt status; for this reason, she has the option of filing her own return as a non-resident alien or jointly with you as a resident alien.

2) Your wife is not liable for the Social Security and Medicare taxes while she was on J-1 visa. She is only liable while on her permanent resident visa. She has an obligation to inform the university to start withholding Social Security and Medicare taxes.