Hi,

Came to US on H1b for the first time with spouse on July 10th 2018. What should my filing status be ? Both are Indian citizens.

Since you have not yet met the Substantial Presence Test, you have two options. You can:

- file by yourself as a non-resident alien, filing Form 1040NR-EZ. Probably NOT the best choice, because there is NO personal exemptions anymore and you are NOT eligible to claim the standard deduction.

OR

- Wait until sometime in May and file a joint return with your wife. It WILL require you claim ALL world-wide income earned in 2018, but you can claim the Foreign Tax Credit for the Indian taxes you paid on the Indian salary.

You will also need to apply for an ITIN.

If you want professional help filing the return and apply for the ITIN, please email me at the email address in my profile.

ATE

Thank you so much for your response. I have a doubt if they have an option for “ first year choice” where they claim themselves as residents and file MFJ.

They definitely have that option to file jointly as residents. I prepare dozens of such returns every year.

ATE, can they make “first choice “ to be residents now itself and file MFJ by April or should they file for extension and then file MFJ?

They must file an extension and wait to file until late May.

This is required so that they meet the Substantial Presence Test.

Thank you for your help

Glad to help!