Case: I am presently on H1b and want to know what will be my status for filing taxes this year?

From Aug 2006 to Aug 2008 on F1 Visa> 1040NR ez
From Sept 2008 to Sept 2009 on OPT
From Oct 2009 on H1b visa
Status: Married (Wife on H4)

Question:
Can I file my taxes from 1040 ez?
Can I claim for standard deduction of $ 11,000?
Can I claim my wife as dependent?
Can I file my taxes as married filing jointly?

Help will be appreciated!

Thank you

Choice 1: You can file non-resident tax return and Form 8843.

Choice 2: You can file resident tax return as Married Filing Jointly. You will have to wait for 5 months to file your tax return till you meet the Substantial Presence Test in 2010. Your U.S. Tax Return: Substantial Presence Test (http://taxipay.blogspot.com/2008/04/substantial-presence-test.html)

You will get standard deduction of $11,400 and exemptions ($3,650 each) for both of you.
You must both declare your worldwide income for 2009. If you have any foreign income, and on that income you paid taxes in the foreign country, then you can claim foreign tax credit (Form 1116) or you can use Foreign Earned Income Exclusion (Form 2555). Your U.S. Tax Return: U.S. Citizen or Resident with Foreign Income (http://taxipay.blogspot.com/2008/03/us-citizen-or-resident-with-foreign.html)

You will complete forms W7 (application for ITIN) for your spouse and attach with your tax return.

Thanks Sir! Also can you tell me how can I extend my tax return in May... Do I need to ask for any extension, if Yes then what's the process?

File Form 4846 on or before April 15, 2010. Make sure to pay all due tax. Also file state tax return extension.

Thanks MukatA... I am a bit confused because as per the substantial Presence test I need to complete 5 years... but my 5th year is starting in May 2010 as I cam here in may 3rd 2006... Can I still file 1040ez after getting an extension?

You are on H-1B from Oct 2009. The days on H1B are not exempt from residency. But you will not complete 183 days on H1B in 2009. You will be resident in 2010. So as First Year Choice, you can choose to be treated as resident for 2009 if you file joint return.