Hello,

I'm currently on H1B since Oct. 2007 and hence, do satisfy the substantial presence test for tax year 2008. Now, since my wife is not in US and I will be filing married & joint return I have the following questions.

1. Although my wife is not resident for tax purposes, I will be treating her as resident since we're filing jointly. Now, if she is currently employed outside US should we declare her income for US tax?

2. Where on 1040 form does it require us to add foreign income? I see foreign tax credit box but, no boxes which says foreign earned income? Could you please guide me?

3. Since, her income is quite small (about 5% of my US income) should I still declare?

4. If I decide to not claim any foreign tax credit can I just ignore my wife's income outside US?

Please let me know ASAP.

Thank you.

1. Yes
2. Same lines where you show the U.S. income.
3. Yes
4. No