Hi,
I am on my H1 since March 2006, got married in OCT 2007,

My spouse never been to US
my spouse has never been to US,

what should be my filing status, can i file as "Married jointly"

Yes, you CAN file Married Filing Jointly.

Your wife's physical location is irrelevent; she could be on Mars for all the IRS cares.

However, if you file jointly, HER world-wide income for 2007 becomes subject to U.S. taxes. That can be partially offset by claiming the Foreign Tax Credit (Form 1116) or totally offset by claiming the Foreign Income Exclusion (Form 2555).

If she has NO income, then you will do very well, as you get to claim HER personal exemption of $3,400 and your standard deduction DOUBLES from $5,350 to $10,700.

The only real problem is that SHE has to sign the return, and she needs to apply for an Individual Tax Identification Number (ITIN) using Form W-7, which she ALSO has to sign.

That means you will have to prepare the federal tax return, sign it, prepare the W-7, mail them both to your home country, have her sign the W-7 and the tax return, then attach the required identification document to the W-7, then mail everything to the ITIN Processing Center in Austin, Texas.

I would expect it will be about TWO MONTHS before you get your refund from the IRS.

You will get her ITIN about the same time in a separate letter. Then you have to do the same thing over again for the STATE income tax return, because she has to sign THAT form as well.

It will go faster if you use tax software, because TaxAct (and probably TurboTax and TaxCut) lets you print the tax rteurn in PDF form, which can be emailed to her to print and sign. She can then mail the signed documents and notarized photocopies of passport or other identification documents (see the W-7 instructions) back to you for signature, and then you can mail the return and W-7 to Austin, Texas.

Hi,
I am on my H1 since March 2006, got married in OCT 2007,

My spouse never been to US
my spouse has never been to US,

what should be my filing status, can i file as "Married jointly"

What taxes form do I need to do my taxes

You will file as a resident alien, filing Form 1040, 1040A or 1040EZ, depending on the complexity of your return and your unique circumstances.