Hi,
I got my H1 visa in Oct 2004. Last year I filed for 1040NREZ form. I got married this year in Feb. My wife joined me over here on a H4 visa. She got her admissions in university for Fall semester with assitantship. So he got her visa status changed to F1. So which tax form can I file.

If I file 1040 form, can I take the $4850 deductions because of the India treaty along with standard deductions and exemptions ?

Thanks
talligator2001

Talligator2001:

You need to file Form 1040, since your H-1 visa makes you a resident alien. You will be allowed to claim the standard deduction of $5,000.

Your wife can file Form 1040NR with the standard deduction of $5,000 allowed under the U.S.-India Tax Treaty. She also has the option of filing jointly with you. She may want to prepare the returns both ways and determine which way results in the least amount of tax. I suspect there will be little, of any, difference.

Thanks Atlanta tax expert. You are an expert.

Thanks
talligator2001

Glad to help!