I am a novice when it comes to tax filing and here is the background -

I came to the US in 2006 and I worked as a graduate assisstant ( F1 visa ) for five months in 2008 in Texas and as a full-time employee for six months in Maryland ( OPT to H1B ).

My husband came to US in Aug 2003 and has been on F1 visa till now and is in Texas. I assume he will be considered a resident.

We have a one year old child.

We wanted to file jointly since I thought that we will have better tax savings ( read somewhere that this is a favourable option if the difference in salary is significant ).

My questions are -

1. Given the scenario, is it better to file jointly or separately.

2. If we file jointly, since he will be considered a resident ( is that right ), will I also file as a resident. If so, then will I have to forego the benefits I get on OPT ( no need to pay social security taxes and medicare )

3. I was given a lump sum amount for relocation and signon bonus and was charged around 40% tax on that. Is there any way that I can save on that tax amount.

4. I have a bond with this company and if I leave the company within some time frame, I have to repay this lumpsum amount. My question is, in the event I do leave, can I get a refund on that taxes I paid. What should I do for that.

Thanks to all who reply to my post.

1. Do your return both ways and then figure out which is best for you. Normally, joint return is better.
2. You must start paying FICA taxes.
3. Report bonus as income on your tax return. Your net tax rate will come out to be much less than 40%.
4. If you pay back the relocation amount, claim as negative income in the year you repay it.