Hi, I am an H1B holder and have been filing taxes individually. I got married on Dec. 30, 2006 and my husband and I returned to the US on January 16, 2007, with him on H4. Then in October, his status changed to H3 visa holder. Can I file jointly with him? Do H3 holders pay taxes as he works part time? If they do, what happens to the part when he was fully my dependent?
Thanks

Yes, you can file jointly. You COULD have filed jointly for 2006 as well.

Yes, if he earned income, he must pay taxes, whether he files jointly with you or separately.

If you file jointly, he is NOT your dependent; he is your co-filer.

For 2006 you can file as Married Filing Jointly or Married Filing Separately. As MFJ, you must both declare your world wide income for 2006.
As MFS, you can claim exemption of your spouse if he did not have any income in 2006.

Agreed!