Hi, I came to the US in 2005 with F1 visa. On Sep,1,2007 I changed my status from F1 to H1B. I've filed an extension for 2007 tax return. I am married and my wife does not meet either the green card test or the substencial presence test in 2007. We are going to file jointly. Now I got some questions about the first year choice:

1. Can we claim to be treated as resident for the WHOLE year of 2007? Or we have to file as dual-status with the residency starting on Sep,1,2007?
2. If we have to file as dual-status, which form should we use, 1040-NR or 1040? Can we claim the standard deduction in this case?
3. There is a tax treaty between my country of citizen and the US. Can I claim the treaty deduction for both cases?

Thanks.

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Originally Posted by frank0824

Hi, I came to the US in 2005 with F1 visa. On Sep,1,2007 I changed my status from F1 to H1B. I've filed an extension for 2007 tax return. I am married and my wife does not meet either the green card test or the substencial presense test in 2007. We are going to file jointly. Now I got some questions about the first year choice:

1. Can we claim to be treated as resident for the WHOLE year of 2007? Or we have to file as dual-status with the residency starting on Sep,1,2007?
2. If we have to file as dual-status, which form should we use, 1040-NR or 1040? Can we claim the standard deduction in this case?
3. There is a tax treaty between my country of citizen and the US. Can I claim the treaty deduction for both cases?

Thanks.

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One more question, if we file as dual-status, can we get the stimulas rebates (1200$)? Both of us have SSN and paid tax in 2007. Thanks.

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Originally Posted by frank0824

Hi, I came to the US in 2005 with F1 visa. On Sep,1,2007 I changed my status from F1 to H1B. I've filed an extension for 2007 tax return. I am married and my wife does not meet either the green card test or the substencial presense test in 2007. We are going to file jointly. Now I got some questions about the first year choice:

1. Can we claim to be treated as resident for the WHOLE year of 2007? Or we have to file as dual-status with the residency starting on Sep,1,2007?
2. If we have to file as dual-status, which form should we use, 1040-NR or 1040? Can we claim the standard deduction in this case?
3. There is a tax treaty between my country of citizen and the US. Can I claim the treaty deduction for both cases?

Thanks.

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1. You can be treated as residents for the whole year of 2007. You will NOT file Dual Status return, instead you will file joint resident tax return for the whole year.
2. On resident return you will both get standard deduction and exemptions. (On Dual status, you can not take standard deduction).
3. If you file as residents, you can not take treaty deduction.

If your wife has a SSN, you will get the stimulus check. If she has an ITIN, you will NOT get the stimulus check.

Thanks for the replies. However, I am not sure why I can select to be treated as resident for the whole year of 2007. In publication 519, on page 9 under the "Choosing Resident Alien Status" section, it says:

If you are a dual-status alien, you can choose to be treated as a US resident for the entire year if ALL of the following apply:

1. You were a nonresident alien at the beginning of the year.
2. You are a resident alien or US citizen at the end of the year.
3. You are married to a US citizen or resident alien at the end of the year.
4. Your spouse joins you in making the decision.

This includes situations in which both of you and your spouse were nonresident aliens at the beginning of the tax year and both of you are resident aliens at the end of the year.

I do not think I meet the second requirement here. Because by the end of 2007, I met neither of the green card test nor the substencial presence test. So at the end of 2007, I was not a resident alien. Could somebody explain this? Thanks.

When you have read so much, why don't you read one more page: Page 10; Nonresident Spouse Treated as Resident.

Actually, the thing is that neither of me or my wife was resident alien in the year of 2007.

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Originally Posted by MukatA

When you have read so much, why don't you read one more page: Page 10; Nonresident Spouse Treated as Resident.

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The procedure spelled out in IRS Pub 519 allows you and your wife to CHOOSE to be treated as resident aliens for all of 2007.

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Originally Posted by frank0824

Actually, the thing is that neither of me or my wife was resident alien in the year of 2007.

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Resident does not mean that you must be U.S. citizen or green card holder. Here resident means resident for tax purpose.