Hi

I would appreciate your advice on what options my husband and myself have in terms of filling our tax returns

-Husband
Changed his STATUS from F1 to H1B in October 05, got actual H1B visa in January 10th 06 when he went outside of the US (he is resident, correct?)

- Wife
Was on OPT until July 17, then converted to H4, then in October converted to H1B (I guess I am non-resident or dual if wait to meet the substantial test?)

No special treaties

My understanding is that we have two options
1. Filling separately - my husband is resident, I am not-resident (or dual if I want to wait)
2. Filling together as residents

Is it correct?

Thank you

You got it right!

Normally, filing jointly is the best route tax-wise, but not always.

Thank you!
I will try it both ways and see.
Olena

Glad to help!