I'm working from last one year on J1, but my wife and children are in India. I heard somewhere that I can take tax benefits of spouse and chidren. Is it possible?

What is J1 for? Student, Intern, professor, researcher? Read: Your U.S. Tax Return: U.S. Tax Filing Requirements for Non-Residents (http://taxipay.blogspot.com/2008/03/us-tax-filing-requirements-for-non.html)

J1 for researcher

For 2 years on J1 you are exempt from FICA taxes and federal income tax. You will pay only the state income tax. Read Your U.S. Tax Return: U.S. Tax Treaties for Professors, Teachers and Researchers (http://taxipay.blogspot.com/2008/04/us-tax-treaties-for-professors-teachers.html)