Hi,

I was on F1 visa for 5 years. I had CD's in banks. This money I had from India (not earned in US) for tution purposes, fortunately I could cover the expenses through my stipend-- hence the CD's are intact.

As F1, I filled the W8 BEN form, and did not pay the tax on interest.

Now I am on H1B visa from the mid year 2008. I did the substantial presence test, and am told that hence forth I will be filing as a resident for tax purposes.

My questions are:

1. Will my CD's now attract tax on interest (this money was not earned in the US)? Or can I still fill the W8 BEN form?

2. Initially though I kept this money in CD's as a student for emergency fund- now that I have a job-- I would like to invest it in stocks/ MF/ or debts as the CD rate is extremely low. How can I go about that?

Also an additional question is:

1. My spouse is in India. He was initially on F1, then F2, and now will apply for H4. As a F1, I did file my tax return as a joint holder. Now I am told that I can file my spouse as a dependent, even if he stays in India. Also he has an income in India. Can I still file him as dependent.

Thanks

On H1-B, if you complete SPT or if you choose to file joint return as residents, then you must report interest on CDs for full year 2008.

About additional question:
On F1 you can only file nonresident tax return.
On H1-B, your spouse you can file joint return as residents and both must report worldwide income for 2008.

Not an expert like many others here. So you can safely ignore me.

Assume your parents back home ? Are they retired ? Move your invest
Ments in their name. Forget the rest.