I am here(New Jersey) on H1 from March 2008. My wife came here on H4 on May 2008.
Now I received my W2.
I want to file tax returns...

1. Should I file individually or jointly and what are the benefits.

2. How should I go about filing tax. What are the steps.

3. I believe we have to get an ITIN no for my wife if we have to do it jointly. But when I went to the IRS website it says.. it need tax return for w7 form.

I would appreciate if anyone can give me professional advice.

Please help as I am really confused.I know it may be not that confusing but reading here and there made me really confused and I am here for help.

For 2008, you can file resident tax return as Married Filing Jointly. You will get standard deduction of $10,900 and exemptions for both of you. So evidently, this is the best option.

You must both declare your worldwide income for 2008. If you have any foreign income, and on that income you paid taxes in the foreign country, then you can claim foreign tax credit.

You will complete forms W7 (application for ITIN) for your spouse and attach with your tax return.
You can also deduct moving expenses. Use form 3903.
Instead of attempting to do your tax return yourself, you should take professional help. Contact AtlantaTaxExpert at [email protected]
Note that most of the tax professionals (specially tax shops) are not competent to do such returns.