H1B (CA) and spouse F1 Student (TX) with OPT in CA - Filing Status Issue
Hello Tax Experts,
I tried to search all the threads but didn't got answer to my question, so I guess I am in a unique situation. I am on H1B Visa and working in California since May 2006. Last year I had paid 2007 tax with 540A as a California resident.
In December 2008, I got married. My wife is a student on F1 Visa and in Texas since 2005. However, she did a summer internship in California from June 2008 to August 2008. So, over the year, she has earnings in TX as a research assistant and also in CA as an intern.
Now, if I am filling as "married filing jointly", its fine in federal tax return. However, if I file as resident and married filing jointly for California state tax, my wife's income in Texas also gets taxed in California. This is because, if one is a California resident, then his/her all income is taxable for state return (http://www.ftb.ca.gov/forms/2008/08_1031.pdf - Page 4). Please suggest what I should do for filing CA tax return. What will be my wife's status in CA? What should I file jointly as - resident or non-resident, and how should I go about it?
Also, when I used one of the software to file federal tax, it is showing me that I should get additional $600 in stimulus (apart from $600 that I already got last year). Is this right, and am I eligible to receive $600 more since I am filing? Please advice.
Appreciate all your help.
Thanks.