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-   -   Appropriate tax return strategy? (https://www.askmehelpdesk.com/showthread.php?t=52902)

  • Jan 7, 2007, 08:52 AM
    anon_anon
    Appropriate tax return strategy?
    Hello,

    I was on F1 for 5 years, then on OPT for 10 months, and now on H1 for 8 months. This should qualify me as a resident alien for 2006. My wife did almost the same, but her H1 started 3 months ago, so I am not sure whether she is a resident alien or not for 2006. Her OPT also lasted for 11 months before H1.
    1) Is she considered a resident alien or non-resident alien?
    2) How does this affect our filing? Can we file jointly?

    For a few months in 2006, I was working in DE, staying in MD. Then I moved to NY for job in NY.
    3) How many state tax forms should I use? Which ones?

    My wife worked in MD, stayed in MD in 2006.
    4) Does she need only the MD state tax form?

    Last month I got some dividend from my investment account, but that was reinvested.
    5) What are the guidelines for this in terms of tax return?

    These are a lot of questions, but I would really appreciate your help.

    Thank you.
    A_A.
  • Jan 8, 2007, 10:37 AM
    AtlantaTaxExpert
    A_A:

    YOU need to file as a resident alien.

    If your spouse was on F-1 for five years, she needs to file as a resident alien as well.

    You CAN file jointly.

    If you file jointly, you must both file Delaware, Maryland and NY tax returns. You will only pay taxes on the income earned in these respective states to those states.

    The dividends, even though re-invested, are taxed as capital gains.

    If you want my help professionally, contact me at [email protected].
  • Jan 9, 2007, 05:30 AM
    anon_anon
    Thank you very much, AtlantaTaxExpert. I will contact you, if required.
  • Jan 9, 2007, 07:06 AM
    AtlantaTaxExpert
    Glad to help!

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