Help!!

My case is a little complicated.

I started my F-1 from Aug, 2001. Since Oct 2005, I started to use OPT and got my H-1 at Oct 1, 2006.
My wife started her F-1 from Aug 2003, and has not change since then.

For 2005, I still filed non-resident alien.

1) I assume I can do joint return for 2006, since from Jan 1, 2006, I should be treated as resident alien from 5 years test. Am I correct? I want to do joint return for 10,000 standard deduction. Do we need to write a letter to IRS to explain we want to do joint return and we want my wife be treated as resident alien from now?

2) Also, we forgot to notice the university my wife studied in. Now she has 1042-s (treaty between US and China) and W-2 for her research assistantship for 2006. How do I handle 1042-S? Put it as other income in 1040 form? Do I need to attend 1042-s when filing my return? Can I use e-file in such case?

3) One of my stock broker also forgot to update my status, and send 1042-s to me for the interest and dividend. It is only $40, but I think I still need to report them. What should I do? Put as other income also?

Thanks!

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Originally Posted by zhuoli

Help!!!

My case is a little complicated.

I started my F-1 from Aug, 2001. Since Oct 2005, I started to use OPT and got my H-1 at Oct 1, 2006.
My wife started her F-1 from Aug 2003, and has not change since then.

For 2005, I still filed non-resident alien.

1) I assume I can do joint return for 2006, since from Jan 1, 2006, I should be treated as resident alien from 5 years test. Am I correct? I want to do joint return for 10,000 standard deduction. Do we need to write a letter to IRS to explain we want to do joint return and we want my wife be treated as resident alien from now?

2) Also, we forgot to notice the university my wife studied in. Now she has 1042-s (treaty between US and China) and W-2 for her research assistantship for 2006. How do I handle 1042-S? Put it as other income in 1040 form? Do I need to attend 1042-s when filing my return? Can I use e-file in such case?

3) One of my stock broker also forgot to update my status, and send 1042-s to me for the interest and dividend. It is only $40, but I think I still need to report them. What should I do? Put as other income also?

Thanks!

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More information about my case.

Also, I am from China and I have been living in Texas since 2001. On my broker 1042-s form, there is also tax withholding. From what I searched at this forum, seems I need to attend 1042-s form in such case, but where should I report this number on 1040? What I do now is to use the difference between gross income and tax withhelding on 1042s as the "other income" on 1040.

Also, can I claim education credit for my wife? When I use software, I looked at 1098T form and subtract the "scholarship and grants" part from "qualified fee" part and use the new number to put in the software as "qualified fees" to get lifetime credit (She is doing her Ph.D.).

Thanks!

Because of the five-year rule, you MUST file as a resident alien.

You can report the income from the Form 1042-S either on Line #21 or as wages. If you put it in wages, however, you CANNOT file electronically; the return MUST be mailed. If you put the money on Line #21, efiling is possible, but the IRS may hold the return up until they get an explanation about the Line #21 income, especially if it is over $1,000.

You CAN claim the education credit for your wife's tuition payment. The method you describe for claiming the credit is correct.