Hi

I am on H1B and my dependents on H4(Wife and 1 Daughter). We came to US on 1st Aug 2008. My W2 form has marital status as SINGLE but will be changing now as I have completed 180 days in US. My Queries:

1. Whether I need to file file Taxes Return, as Single or Jointly.
2. My daughter goes to Pre-School, do I need to mention the fees when filling the form.
3. W2 form also specify the Medicare and Social Security Tax Withheld, if filling jointly do I need to fill that too.

Regards
Zaheer

You can file resident tax return as Married Filing Jointly. You will have to wait for about 5 months in 2009 to file your tax return till you meet the Substantial Presence Test (of 183 days) in 2009.

You will get standard deduction of $10,900 and exemptions for both of you and the child.

You will get tuition and fee deduction. You do not report FICA taxes on you tax return.

You must both declare your worldwide income for 2008. If you have any foreign income, and on that income you paid taxes in the foreign country, then you can claim foreign tax credit.
Read about H1-B tax filing: Your U.S. Tax Return: The U.S. Visas (http://taxipay.blogspot.com/2008/08/us-visas.html)

Unless your wife works or goes to school, you CANNOT claim the pre-school fees for day care credit purposes.

This applies for U.S. citizens as well as foreign nationals.