I am on H1B since Oct 2005 (resident alien) and my wife is on F1(non-resident alien) since Aug 2004. We got married last year in June 2006 and live in different states. My wife is into her masters degree program (2nd year) and she gets stipend from her school (teaching assistantship). She has got her own W2 from a different state than mine.

My first and major concern is are we allowed to file jointly, even though we have different tax status? Would that affect her status (from non-resident - resident for 2006)? What are the additional forms that we need to file to bring to IRS & employers notice about changing her status. Also what are the things we need to take care of this status change for her from the future point of view? Also she doesn't have any state tax unlike me so can I file a federal return jointly and state return independently?

In addition I am major contributor for my wife's educational expenses such as tuition fees, books, laptop, rent (we stay in different cities) . Can I claim Hope/Life time credits for expenses relating to her education? I have got 1098-T form from school.

Could you please help.

Thanks and Regards,

Satyam

Yes, you CAN file jointly, but it DOES affect her status, making her a resident alien for tax purposes from 1 Januar 2007 onward. She would have to notify her employer of this fact and, if she has NOT been paying Social Security and Medicare taxes, they WILL tax her retroactive to 1 January 2007.

Generally, if you file jointly on the federal return, the states require you file jointly on the state returns as well, even though ONLY the income earned within the state is subject to state income taxes.

You can claim the Hope/Lifetime Learning Credits or the education deduction ONLY IF you file jointly.

Yours is a complex tax situation. You REALLY should get professional help!

Hi Satyam,

Looks like everything went well... I am in the same shoes where you were a year ago. Can you please suggest how it went for you that time. My wife is in F1B(Just got married) and I have been working in H1B since past few year.

Help Appreciated.


Alix

Quote:

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Originally Posted by Satyam

I am on H1B since Oct 2005 (resident alien) and my wife is on F1(non-resident alien) since Aug 2004. We got married last year in June 2006 and live in different states. My wife is into her masters degree program (2nd year) and she gets stipend from her school (teaching assistantship). She has got her own W2 from a different state than mine.

My first and major concern is are we allowed to file jointly, eventhough we have different tax status? Would that affect her status (from non-resident - resident for 2006)? What are the additional forms that we need to file to bring to IRS & employers notice about changing her status. Also what are the things we need to take care of this status change for her from the future point of view? Also she doesnt have any state tax unlike me so can I file a federal return jointly and state return independently?

In addition I am major contributor for my wife's educational expenses such as tuition fees, books, laptop, rent (we stay in different cities) . Can I claim Hope/Life time credits for expenses relating to her education? I have got 1098-T form from school.

Could you please help.

Thanks and Regards,

Satyam

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Read my previous post.

Like Satyam, you will be able to file jointly if you choose.