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admirer · Jan 10, 2009, 11:15 PM

Hi all !
I am a nonresident alien student from India in F1 visa. Came to US in Jan 2004. I also get paid as a graduate research assistant. My wife was in F2 but as she started going school from 2007 she has F1 from then. In 2008 she took a summer training for 2 months where she got paid. Now my questions are:

1. will each of we have to file separate tax return this time?
2. will I be able to claim her as dependent (until 2007 I claimed her as my dependent and she didn't have any income till then)?
3. which form she will have to fill if she has to file separately?

Please advice. Thanks in advance..

MukatA · Jan 11, 2009, 03:24 AM

1. You are non-resident so you must file non-resident tax return.
2. If she did not have any income in 2008 (as per tax treaty).
3. Form 1040NR or 1040NR-EZ.
Read: Your U.S. Tax Return: U.S. Tax Filing Requirements for Non-Residents

admirer · Jan 11, 2009, 06:33 PM

Thanks Mukta for the quick reply.
So as far as I understand, as my wife had income (although it was very small, less than $3500) in 2008 I cannot claim her as my dependent this time. Right?
Regarding the form that each of we have to fill, I think my wife needs to fill 1040NR-EZ. But what about me this time? Earlier I had always filled 1040NR, but this time I am not claiming her as my dependent, so I also can fill 1040NR-EZ? By the way, I have capital gains from stocks, does that matter in deciding which form is appropriate?

MukatA · Jan 12, 2009, 01:14 AM

Try Form 1040NR-EZ; if it does not serve your purpose, then go for 1040NR.

AtlantaTaxExpert · Jan 13, 2009, 01:08 PM

Because of the capital gains from stock transactions, you MUST file Form 1040NR with a Schedule D.

Your wife must also file, but she can file Form 1040NR-EZ

admirer · Jan 13, 2009, 09:28 PM

Originally Posted by AtlantaTaxExpert

Because of the capital gains from stock transactions, you MUST file Form 1040NR with a Schedule D.

Your wife must also file, but she can file Form 1040NR-EZ

Hi AtlantaTaxExpert, thanks for the nice and clear reply. I have seen your replies in other threads also, those are always very clear and straightforward.
So, if my wife has any amount of income I cann't claim her as a dependent? if the income is very small also? Please let me know.

AtlantaTaxExpert · Jan 14, 2009, 01:46 PM

The requirement for you (an Indian non-resident alien) to claim your wife as a dependent is that she have NO taxable income at all.

Work for two months gives her taxanle income, so you cannot claim her.

Sorry!

admirer · Feb 12, 2009, 12:37 PM

Thanks a lot AtlantaTaxExpert for the nice reply.
I have another question: when my wife did her summer training in another school outside of her school she got paid. But social security and medicare taxes are withheld from her salary. But I came to know that F1 student who got work authorization bcoz of economic hardship don't have to pay those taxes (mentioned in IRS pub 519 page 48,49). My wife got her EAD card on the basis of economic hardship. The IRS says if such tax has been taken in error one has to contact the employer first to get a refund before asking IRS for refund. I went to the employer and they say as my wife entered the US originally under F2 visa she needs to pay those taxes. But my wife changed her visa status to F1 while in the US. And then she got the EAD card. Do you think the employer is correct in this regard? Please inform.

AtlantaTaxExpert · Mar 3, 2009, 02:53 PM

No, the employer is wrong.

Go back and ask again for the refund, and, if they refuse, ask for the refusal in writing on company letterhead.

Once you have that letter, then submit Form 843 with the necessary support documents to get a refund of those FICA taxes.

admirer · Mar 3, 2009, 08:58 PM

Originally Posted by AtlantaTaxExpert

No, the employer is wrong.

Go back and ask again for the refund, and, if they refuse, ask for the refusal in writing on company letterhead.

Once you have that letter, then submit Form 843 with the necessary support documents to get a refund of those FICA taxes.

They are now saying that there is no way to know that her EAD card is on the basis of economic hardship, so they cannt refund the ss tax. But I think EAD card is given to a foreign F1 student only for OPT, CPT or economic hardship, so having the EAD by itself proves that he/she comes under either of those three and all those three are actually eligible for a refund (if the student has non resident alien status), am I right?
I am thinking to go and tell them that if that's right..

AtlantaTaxExpert · Apr 28, 2009, 10:12 AM

Economic hardship has NOTHING to do with her FICA exemption. If the employer does not want to cooperrate, then submit Form 8316 in lieu of the refusal letter with the Form 843 and request the refund direct from the IRS.