Hi



We are from India and my husband is working on a J1 visa as a Research Scholar in US since september 2005.He entered US as a J1 visa holder.

We got married in July 2007 in India and so as of December 2007 my husband had Married Status.My husband has filed a1040NR return for 2007...and claimed Personal exemption and standard deduction for him and claimed me(spouse) as a dependant in the return as spouse exemption option was not available in form 1040NR for Indian citizen.

But now after browsing on the net, i realise that since he has been in the US for more than 2 yrs on a J1 as a Research scholar, he can file 1040 instead of 1040NR.Please let me know as to what are the consequences of filing 1040NR instead of 1040.Will he get a refund based on the 1040NR return filed.Please advice.



Please revert asap

MukatA

On J1 as research scholar your husband was exempt for 2-years from FICA taxes as well federal income tax.
In 2007, he must file resident tax return. So you will need to amend your tax return: File 1040X, with properly done resident return.

You claimed standard deduction on 1040NR, which is not available to the residents. Also on 1040NR, you cannot claim spouse as dependent. So chances are high that you will get a letter from IRS about your tax return with an additional tax bill.

Only F1 and J1 students can claim standard deduction and exemption for their spouse. It is not available to research scholars.
For the U.S. and India Tax treaty, read: Your U.S. Tax Return: U.S. Tax Treaties for Students and Apprentices