I was on OPT from Jan 1st 2007 to May 21st 2007 and from May 22nd onwards I moved to H1B with the same employer. My employer informs me that I will be on dual status- How does that work? I understand that I pass the substantial presence test of 183 days and will have to file as resident alien- but am not sure how the non resident part works?

My wife moved from dependent visa to F1 status on sept 1st - ( she has assistantship). I was thinking of filing taxes - married filing jointly.
But on the IRS website it says I cannot claim std ded if on dual staus? Am totally confused.
Help. Thanks in advance
vin

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Originally Posted by vinpra

I was on OPT from Jan 1st 2007 to May 21st 2007 and from May 22nd onwards I moved to H1B with the same employer. My employer informs me that I will be on dual status- How does that work??I understand that I pass the substantial presence test of 183 days and will have to file as resident alien- but am not sure how the non resident part works?

My wife moved from dependent visa to F1 status on sept 1st - ( she has assistantship). I was thinking of filing taxes - married filing jointly.
But on the IRS website it says I cannot claim std ded if on dual staus?? Am totally confused.
help. Thanks in advance
vin

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Your employer is correct. You are a dual status alien meaning that you were part year non-resident and part-year resident. The dual status return is quite complex but involves a mix of the two. You are right that you cannot claim the std deduction.

What your employer has not mentioned is that you and your wife may elect to file jointly as long as you elect to both be residents for the full year. This will mean that any foreign income earned from Jan 1st 2007 to May 21st 2007 would be taxable in the US. However, you would get to use the std deduction. In your case, it seems that this would probably be a good idea.

TTE addressed all pertinent issues (as always); I have nothing to add.

Thanks for the reply. Yes I figured out from pub 519 chapter 1 - where it says I can file jointly with my wife(in which case the restrictions from chap 6 does not hold ) meaning I should treat myself and my wife as resident alien the whole year, file jointly, and can claim standard deduction. The world wide income - I do not have any income anywhere - not even interest income - so it doesn't affect me much.
Thanks that was a great help.

vinpra

Glad to help!