Hi,

My husband(H1B visa holder, Mongolia nationality) and I (H4 visa holder,Chinese nationality) came to USA on 1st,Dec 2006. He works in university as postdoctoral researcher,and paid 38,000/year.

The questions are:

1. How much income tax he need to pay?

2. Are we eligible for applying tax refund?

3. Before we came to USA, we lived in the Netherland for the past 5 years. Will it have effect on our pax payment?

Thanks!

Min

Min:

Your husband should file as a non-resident alien for 2006, filing Form 1040NR-EZ. Because he has ONLY one month's pay to report for 2006, his personal exemption of $3,300 will completely offset any tax owed on his first month's pay of about $3,200. This way, he does NOT have to report his world-wide income like he would if he filed as a resident alien.

Because he is on an H-1B visa, he is liable for Social Security and Medicare taxes, plus he MUST file as a resident alien in 2007. At that time, you can file jointly with him.

The fact that you lived in the Netherlands will NOT affect his 2006 tax return.

It should noy have any effect on tax returns in successive years UNLESS you are paying taxes to the Netherlands. If you ARE paying taxes to the Netherland or any other foreign country, there will be some effects on tax returns in future years.

Thanks a lot!

Glad to help!

Contact me at [email protected] if you need help filing!