My wife changed her status from H4 to F1 in August. Based on substantial presence test she qualifies as a resident. Based on previously answered questions on the related topic, I assume we can file taxes as resident.

1. My question is do we still need to submit a statement that my wife chooses to be treated as resident alien even though she qualifies as a resident based on substantial presence test.

2. Do we need to submit this statement every year she is on F1 or just the first year.

If she previously filed a tax return as a resident, she has the choice of continuing to file that way.

However, if she chooses to file as a resident, then she will be liable for FICA (Social Security and Medicare) taxes when she works under CPT or OPT, whereas if she files as a non-resident, she would be exempt from those taxes.

Thanks Atlanta Tax Expert. She has been filing as a resident for the last few years on H4 visa. She has been on F-1 only for last 5 months of 2010. But she will be starting to work on CPT/OPT this year. When I asked her University (her employer) to withhold FICA taxes, they said that they cannot do that.

Does that mean that starting next year she will have to file as a non-resident or is there a way for her to file the taxes jointly with me as a resident.

Thank you

I forgot to mention that she had been filing taxes as married filing jointly with me for the last few years as she had no income. Thank you for the help.

Actually, the university is correct to NOT withhold FICA, based on the link below:

http://www.irs.gov/businesses/small/international/article/0, id=96370,00.html

So she can continue to file jointly with you.