Hi,

I am on H1-B visa since September 2005. I got married in November (21st) of 2007. Wife was on F-1 until October 31st 2007 and switched to H1-B on November 1st.

How do I go about filing my federal tax return? Do I file as jointly or both of us file it married but separate.

In the "seperately" case, can I fill 1040 and she fill 1040NR (since she was on F-1 was most part of the year)?

Any help is appreciated.

Thanks,
Pradeep.

Choice 1: You can file as resident as Married Filing Separately.
Your wife files a separate return as nonresident. He will also file form 8843. If she had only H1-B income, she will only get her exemption deduction and no standard deduction. She will get standard deduction also, only if she had income during F1 period.

Choice 2: Both of you file as residents Married Filing Jointly. Your standard deduction will be $10,700 and two exemptions of total $6,800.

Thanks for your suggestion. I was thinking of filing jointly. But then if she was treated as a resident alien for all of 2007, will she be charged FICA (SS and Medicare) taxes for the whole of 2007. Currently her W-2 just shows that she was charged for FICA taxes for only 2 months that she became a resident.

Let me know. I am not sure if the tuition credit matters since she was funded by the university.

Thanks,
Pradeep.

Pradeep:

This is an issue of some discussion between me and TTE.

TTE says that your wife would be liable to pay this tax retroactively if she chose to be treated as a resident alien in 2007.

I disagree, saying that once the tax year is closed, the IRS will NOT insist that she pay the FICA tax for years past.

They WILL insist that she pay FICA taxes going forward, though.

What's TTE?

Texas Tax Expert, another esteemed tax expert for this forum.