Hi all,
I've been doing some research on how to do my 2014 tax return and came up with a few questions that I cannot find a solution for.

Here's the current situation.

Me:
2012 May ~ 2013 June => F-1
2013 July ~ 2014 August => OPT
2014 August ~ => H-1B
Got married in 2014 November in Korea and no kids.
Citizen of South Korea.
Alabama resident for entire 2014.
Non resident alien for 2014.
Spouse:
2010 ~ 2015 => F-1
Citizen of South Korea.
North Carolina resident for entire 2014.
Non resident alien for 2014.(5th year of exemption).
2014 Filing:
I plan to apply the "First year choice" and then apply the "Non-resident spouse as a resident" option to file a 1040 Married filing jointly as a resident alien in 2014. My understanding is that I would have to extend my federal return and wait until around July 2015 to file the return in order to qualify for the "First year choice".
Question:
Should we extend our state tax returns (AL & NC separately) along with our federal returns or can we file our state tax returns on time regardless of the federal extensions?
Also when we do file our state tax returns, do we file as married filing separately or married filing jointly (to match federal return)?
Lastly, can I E-file my federal tax return and mail the 2 statements or do I have to mail them all together (we both have SSN).

Thank you so much in advance!

You have NO waiting requirements for the state returns. You can file those returns immediately, and they can be efiled, and file them jointly.

You have to wait to file the federal return, and, due to the Residency Choice Statement, the federal return MUST be mailed with the statement.

Thank you for your quick response.One additional question. Can I file a MFJ return even though we didn't live together for the entire year? (NC & AL)

Yes, you can. You could be here and your wife could be on Mars and you could still file jointly.

I appreciate your help.

I have one more question.

Under the US-Korea tax treaty Article 21, students and trainees are exempt in the amount of $2,000 for 5 taxable years. My wife has been claiming the treaty benefit and tax year 2014 is her 5th taxable year. I have claimed the exemption in tax year 2013 and 2014 is my 3rd taxable year.

Would I be eligible for the treaty benefit based on the exception to the saving clause even though I'm not a researcher nor a student? (I work in marketing)

If so, are we eligible for a $4,000 deduction? ($2,000 X 2 people) or just $2,000?

If not, can we still claim $2,000? (wife's portion)

Also, since the tax treaty allows exemption for 5 taxable years would I be able to claim exemption($2,000 because my wife would have exhausted her 5 taxable years) for 2 more taxable years?

Thank you in advance.

Yes, you both can claim it as a negative number ( - $4,000) on Line #21 of Form 1040. You need to submit Form 8833 to explain the treaty exemption, so the federal return will have to be mailed.

NEXT year, only your wife can claim it.

If you need professional help filing, please email me at the email address in my profile.