HI,

My spouse has been on H1B since dec 2008(thats when spouse came to USA) - no job /w2/paystubs.

Do we file married Joint/Married filing separately? Would it be a problem that he has no paystubs when they review the return? Should I not claim his as a dependent to reduce problems?

Thanks.

OK your spouse has H1-B. What about you?

I am on H1B as well. Since oct 2007.
I filed as single -1040NREZ last year as I was on OPT for the first part of 2007 and unmarried at that time.

Yes, you can and should file jointly. She will have to sign a statement choosing to be treated as a resident alien for all of 2008, AND any income earned in her home country must be declared on that tax return.

The extra tax on her home country income can be offset by either claiming the Foreign Tax Credit (Form 1116) or the Foreign Income Exclusion (Form 2555).

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