Hi, I am in New Jersey since September 2004. So in the calendar year of
2005 I have been a resident of New Jersey. I am on H1 Visa. My wife
Came to US in May 2005 on H4 Visa.

I have following questions on filing tax return for 2005:

1. Am I a resident alien? Is my wife a
Resident/non-resident/dual-resident alien?

2. Do I file as "Married filing separately" OR "Married filing
jointly"? What are the benefits of one against the others. One benefit
I noticed for filing jointly was that I can deduct my student loan
Interest payments. Please note that my wife cannot work, cannot have
SSN and has zero income. Does "Married filing jointly" is even valid in
That case?

3. Do I need a Tax Identification No. for my wife?If yes then is it
Applicable for both cases (jointly and separately)

4. In one of the previous posts, you mentioned something about June filing-First Year choice. How is it applicable in my case? Could you elaborate?


I'll be grateful if you can let me know the way I should file my taxes to get maximum tax refund.

Thanks.

Pratikrana:

1) You are a resident alien. If you file jointly with your wife (my recommendation), she will be treated as a resident alien.

2) You may file jointly with your wife, if, for no other reason, to double your standard deduction to $10,000.

3) Yes, she will need an ITIN. Download a W-7 from www.irs.gov, fill it out, have you wife sign it and attach a notarized copy of her passport to the W-7. Attach both to your joint tax return (leave your wife's SSN blank) and mail the return and mail it to the address on the W-7. The iRS will issue the ITIN, insert it on your joint return, process the return and send you a letter with your wife's ITIN. You can then file your state income tax return.

4) First Year Choice does not apply in your case.