F1 status, worldwide income implications of H1B for spouse
I have a somewhat complex international tax situation.
1) F1 non-resident or resident?
I was on an F1 visa from Aug 1999 - Jun 2003, and filed non-resident taxes.
I then returned home to Singapore from early Jul 2003 to late Sep 2007.
I am now back in the US on an F1 visa again for graduate school.
- does the 5-year clock for filing as non-resident start again from 2007, or does the earlier time I spent in the US count towards the 5 years?
- if I have to file as a F1 resident alien, and if my spouse is on an F2 visa, does she have to file as a non-resident or resident alien? She has never been in the US except as a tourist, and will only move here in Jul 2008.
- Additionally, my graduate studies are entirely supported by a scholarship from the Singapore government. This scholarship is tax-free in Singapore, but would it be taxable in the US if I file as a resident alien?
2) My wife received a job offer to come in on a H1B1 US-Singapore free trade agreement visa. The job would start Jul 2008 if she takes it up.
We are concerned about the worldwide income tax implications if she does take up the job as we expect to receive dividend income in Singapore (as well as my govt scholarship income).
My understanding from this forum is that she would have to file as a dual status resident for tax year 2008, and subsequently as a resident alien, whereas if I am a non-resident, I could elect to file separately as non-resident, or jointly as resident, until my 5-year F1 clock runs down, then we would both file as residents.
In either case, what kind of tax rates would we expect to get hit with for our Singapore-derived income if we file as residents?
As far as I'm aware, there's no tax treaty between Singapore and the US.