Hi,

Myself and my wife both are from india. I am currently working on an H1B VISA since October 2005 and my wife is studying on an F1 student VISA (masters degree - 2nd year) and she has got an income (teaching assistantship from school). I was wondering what is the best possible scenario (maximize the gains) for us to file this years taxes? Can we file a joint return? Would that affect the status of wife (from non-resident - resident)? What are the things we need to take care from the future point of view for her if we plan to do change her current non-resident status?

Also I am paying for my wife's educational expenses such as tuition fees, books, laptop, rent (we stay in different cities) . Can I claim Hope/Life time credits for expenses relating to her education? I also have got 1098-T form from school.

Thanks.

Satyam

AtlantaTaxExpert

Satyam:

You can file jointly and you BOTH choose to be treated as resident aliens. That will allow you to claim the Hope/Lifetime Learning Credits for the tuition she has paid.

However, it will ALSO make her liable for Social Security and Medicare taxes in 2007 that she would have been exempt from under her F-1 student visa.

Something to consider.