Hello, I have some confusion about my status and I appreciate if you could give me some hints.
I came to US from Vietnam on F1 visa in 8/02. I graduated last September and started working since then. My OPT started on 9/1/07 and is still in effect. I filed form 1040NR-EZ for the last 5 years. I also paid social security, medicare taxes since 9/07. I got married in 2006. My wife came to US in 8/2004 and has always been on F1 visa. So my questions are :

1) Am I a resident or dual status for 2007 ?

2) Specially, what kind of form do I need to file, 1040 or 1040NR ? Can I claim 5350 standard deduction and 3400 personal exemption ?

3) If I am indeed a resident, from my understanding that my wife can file jointly with me as a resident as well. Is it correct ? If so, could we claim 17,500 standard deduction/exemption for a couple ?

4) If the answer for 3) is yes, where in the form 1040 do I put my wife's 1042-S, Foreign Person's US Source Income Subject to Withholding ? It is for my wife's fellowship. Normally on the form 1040NR-EZ, it is entered in the line 5 "Scholarship and Fellowship Grant".

Thank you very much for your help.

AtlantaTaxExpert

1) You are a resident alien, as the five year exemption for F-1 visa holders expired for you on 31 December 2006.

2) File Form 1040, claiming the $5,350 standard deduction and $3,400 personal exemption IF you file Married Filing Separately.

3) Yes, you can file jointly and claim the total of $17,500 in deductions and exemptions.

4) You enter the income on Line #7 and put the letters "SCH" on the dotted line next to the #7. However, make sure that the fellowship money is in fact taxable.