Hi,

I have been working in the US for the past 2 years on an H1B visa. I got married on September 17th 2010 in my home country and my wife is joining me in the US on October 21st 2010 with an H4 visa. We have no children and no other dependents. I will be the only one working while we remain in the US (probably 2 more years).

I am filling a new W4 form (2010) to update my employer on my change of marital status and I have the following questions:

1. how many (and which) allowances should I mark to have the right amount of taxes withheld?

2. allowance line C says "enter 1 for your spouse", so I would take this allowance since my wife will not be working, but then number 3 of the lower part of the form (marital status) says "note: if married, but legally separated, or spouse is a nonresident alien, check the "single" box".

- Does my wife qualify as a nonresident alien for the rest of 2010?

- If so, is it OK for me to check the single box here but still take the allowance for my wife in line C above?

- Do I have a choice of writing down single or married in this form? And which option would give me a lower tax to pay for the remainder of the year?

- If not, will she qualify as a resident alien for 2011 and will I have to fill in a new W4 for that year?

3. Finally, any tips for minimizing the amount of taxes I pay, given my new status?


Thanks,

Daniel

QUOTE," how many (and which) allowances should I mark to have the right amount of taxes withheld?"---It depedns on your specific sitaution,i.e. your estimated itemized deduction for 2010, youir credits, adjustments to income or etc; nobody can telly accurately how many allowances you should claim ;however, roughly you may claim 3( though not accurate estimation).1; for yourself, 1;you are married, have only one job, and if your spouse doesn't work,1;for your spouse; apparently, the number of your withholding allownces that you can claim are roughly at least 3 on your W4, but itisup to you; do not be afraid to claim as many allowances as you are legally entitled to. As you can see, you should be really careful in filling out your W-4 with your employer. If too little tax is withheld, as you claimed too many allowances on your W4, from your paycheck, there could be penalties imposed by the IRS. The IRS is also now allowed to send your employer a letter with specifies a maximum number of exemptions for your W-4. Though this usually only happens when there has been a grevious violation in tax witholding, but it can happen.


"Does my wife qualify as a nonresident alien for the rest of 2010? "---You need to check the box as married; your spouse, though she will enter the US in Oct. 21 2010, is already resident alien so that she can file MFJ retrun with you for 2010.As you got married and your wife will be with you on a H-4 visa, you can both choose to be treated as resident aliens, regardless of whether she enters the United States before or after July 3rd 2010.
You, as the H-1B visa holder who has been in the United States for the last two years is a resident alien under the US Tax Code, no tunder the US INS Rules.

"If so, is it OK for me to check the single box here but still take the allowance for my wife in line C above?"--- No, as said above, your spouse will be a RESIDENT ALIEN so you should the check the box as "married" not as" single."

"Do I have a choice of writing down single or married in this form? and which option would give me a lower tax to pay for the remainder of the year?"---Married of course. But remeber; the number of withholding allowances that you claimed on you W4 MAY differ from the number of exemptions claimed on your tax return.

"If not, will she qualify as a resident alien for 2011 and will I have to fill in a new W4 for that year?'---She is a resident alien and you can file MFJ for your 2010 tax return. Go ahead and file your amended W-4 and give it to your employer( contact your employer). If your marital status( from single to married) or the number of your withholding allowances have changed, you need to file an amended W-4. Suppose there is a decrease in the number of your allowances, then you must furnish your employer with a new certificate within 10 days. If there is an increase in the number of your allowances, then you can either file a new certificate or just allow the current certificate to remain in effect.
Also, REMEMBER:By December 1 of each year, your employer has to remind you to turn in a new form for the next year if your marital status or number of allowances has changed. Your employer is also required to start using any new W-4 you turn in within a month of getting it from you.


"Finally, any tips for minimizing the amount of taxes I pay, given my new status?"---If you and your spouse decide to file a joint return,MFJ, your tax may be lower than your combined tax for the other filing statuses,MFS. Also, your standard deduction (in the case, you do not claim youritemize deductions) are usually higher, and you also may qualify for a varietyof tax credits orbenefits that do not apply to other filing statuses"
Please visit the web site for further info onMFJ status; Publication 501 (2009), Exemptions, Standard Deduction, and Filing Information

IRS rules for foreign nationals RESTRICTS the number of allowances you can legally claim.

For this reason, claim MARRIED with TWO allowances (maximum allowed under the noted IRS rules).

wnhough and AtlantaTaxExpert:

Thanks for the advice. Very helpful!

- Daniel

Glad to help!