[amitkj2000]

Hello,
I am on H1 visa and my wife recently converted from H4 to F1. Last year we filed jointly and I am planning to do that same this year. I have a few questions and I will really appreciate the answers.

1. Even though my wife is on F1, can I still file jointly?
2. My wife got scholarship that was directly deducted from her tuition. Do I have to file taxes for this amount?
3. I also paid for 50% of her tuition ( 50% was paid by scholarship). Can I deduct this fees I paid for her ?

Thanks for your help.

[MukatA]

1. You filed joint return as residents last year so you must file resident tax return.

2. If you are a degree candidate and if the financial aid (includes scholarship and fellowship) is for tuition fee, other fees, books, supplies and equipment, then it is not taxable.

3. On 2008 tax return you can claim $4000 as tuition and fees adjustment deduction. You need not itemize the deductions.

[amitkj2000]

1. You filed joint return as residents last year so you must file resident tax return.

2. If you are a degree candidate and if the financial aid (includes scholarship and fellowship) is for tuition fee, other fees, books, supplies and equipment, then it is not taxable.

3. On 2008 tax return you can claim $4000 as tuition and fees adjustment deduction. You need not itemize the deductions.

Thanks Mukat. I was told that I cannot deduct tution since the person I am paying for is not a resident. Thanks for clarifying this.

[AtlantaTaxExpert]

If you file jointly with your wife, your wife must sign a statement that she chooses to be treated as a resident alien. Hence, for purposes of the tuition credit, she IS a resident.

[amitkj2000]

We will do that. Thanks ATE

[IntlTax]

Since she just recently converted to F1, she may be treated as a resident even if she does not file the statement ATE refers to. However, it may makes sense to file the statement in any case.

I am curious why she converted from H4 to F1?

[AtlantaTaxExpert]

IntlTax:

While it is true that H-4 visa holders are generally permitted to attend college without changing visa status, I suspect that coverting to an F-1 visa is probably a requirement by the university to qualify for either financial aid or a scholarship.

[IntlTax]

Good point.

[shankkr]

Hi,

I am in the same boat but a different question. I am on H1 and wife recently changed from H4 to F1. Till date, I was filing as dependent. Now, as she has changed to F1, please let me know if we need to mark her as dependent or not?

Regards,
Shekhar

[AtlantaTaxExpert]

She will NOT be your dependent; she will be your co-filer when filing jointly with you, and that IS permitted while she retains her F-1 visa status.