My wife (J2 visa) and I (J1 scholar visa) were resident in the US during the years 2008 (from mid Oct), 2009 and 2010. We returned to our native UK on Aug 1 2010. I believe this makes us Resident Aliens.

My W2 does not have an entry in box 1, which I think is because I was exempt (I have a tax rate of 00.00 on a 1042-S form - exemption code 4). The 1042-S has a gross income amount noted. My wife earned a modest amount (around $11000) and has her W2.

Now the questions:

1) Which form to file?

2) How do I declare the exempt income?

Thanks in advance.

No, you are NOT resident aliens, because the time you spent in the United States under the J-1 and J-2 visas is EXEMPT from the Substnatial Presence Test.

Your wife needs to file a separate return, probably Form 1040NR-EZ plus Form 8843, to claim her W-2 income.

If the Form 1042-S is your only source of income, you have NO requirement to file a federal tax return, though you DO need to submit a SIGNED Form 8843.

As for the state tax return, your wife needs to file the state return as well. You MAY or MAY NOT be required to file; it depends on the state as to whether they will honor the treaty exemption.

If you need professional help filing, contact me at [email protected] or [email protected].