Hi,

I looked around for answers on this forum for my case but could not find any that could answer my question. Your views are most kindly appreciated.

I am currently on H1-B Visa and according to the Substantial Presence Test, I qualify to be a resident alien for 2007. However my wife who was on F1-OPT last year (and this year) continues to be a non-resident alien for tax purposes. She has not paid her social security or medicare taxes in 2007 owing to this status.

She would normally file under 1040 NR-EZ while I would be filing under 1040EZ if we are filing separately. But if we file jointly, then we would both be treated as US residents for tax purposes which would then make her pay social security taxes for the year 2008.

Would it not be prudent to file separately since she is going to be under F1-OPT status until October 2008 (assuming that she gets her H1-B). Else for the whole of 2008 she would have to pay FICA (if I understand it right). What should be done here? Is it advisable to file jointly or separately?

Thanks

AtlantaTaxExpert

Under a new IRS ruling (see link below), your wife can file jointly with you and STILL retain her exemption from FICA taxes.

Nonresident Spouse Treated as a Resident