Hi,

I was on F1 visa until Sept 30th,2009 and since then I have been on H-1B. As I fail to meet SPT, I need to fill out 1040NR-EZ form. My questions are :

• Can I include US-India treaty ($5450, item 11) and personal exemption ($3650, item 13) on the form ?
• I am married and my wife is also on H1B (she was on F1 until sept like me), does that change the forms I fill out? Should I file separately or jointly?

I hope ATE or Mukata will answer my questions. Thanks,

-SP.

Sorry, but it was a busy weekend and I am just now getting caught up.

You can file jointly with your wife and you both CHOSE to be treated as resident aliens. This will allow you to claim the $11,400 joint standard deduction plus two $3,650 personal exemption (for yourself and your wife).

The downside is that:

• you must WAIT to meet the Substantial Presence Test before you can file, which means you must wait until 1 June 2010.
• you must declare ALL 2009 world-wide income, but you can at least partially offset any double taxation by claiming a Foreign Tax Credit (Form 1116).

Even with the downside, this is probably the best way for you to file.

However, the returns should be modeled BOTH ways to be sure which is the best way to file.

If you want professional help doing this, email me at [email protected].