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    cyrsmac's Avatar
    cyrsmac Posts: 3, Reputation: 1
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    #1

    Mar 21, 2009, 10:23 PM
    H1B (CA) and spouse F1 Student (TX) with OPT in CA - Filing Status Issue
    Hello Tax Experts,

    I tried to search all the threads but didn't got answer to my question, so I guess I am in a unique situation. I am on H1B Visa and working in California since May 2006. Last year I had paid 2007 tax with 540A as a California resident.

    In December 2008, I got married. My wife is a student on F1 Visa and in Texas since 2005. However, she did a summer internship in California from June 2008 to August 2008. So, over the year, she has earnings in TX as a research assistant and also in CA as an intern.

    Now, if I am filling as "married filing jointly", its fine in federal tax return. However, if I file as resident and married filing jointly for California state tax, my wife's income in Texas also gets taxed in California. This is because, if one is a California resident, then his/her all income is taxable for state return (http://www.ftb.ca.gov/forms/2008/08_1031.pdf - Page 4). Please suggest what I should do for filing CA tax return. What will be my wife's status in CA? What should I file jointly as - resident or non-resident, and how should I go about it?

    Also, when I used one of the software to file federal tax, it is showing me that I should get additional $600 in stimulus (apart from $600 that I already got last year). Is this right, and am I eligible to receive $600 more since I am filing? Please advice.

    Appreciate all your help.

    Thanks.
    MukatA's Avatar
    MukatA Posts: 7,110, Reputation: 176
    Tax Expert
    		  
    #2

    Mar 22, 2009, 08:21 AM

    You are resident of CA and will report your worldwide income.
    Your spouse is part year resident of CA and will report only the income earned while in CA.
    cyrsmac's Avatar
    cyrsmac Posts: 3, Reputation: 1
    New Member
    		  
    #3

    Mar 22, 2009, 07:34 PM
    Thank you very much for your quick response.

    So, based on your recommended status if I am filing married jointly, which is the correct form to fill - 540A, 540, 540NR Long, or 540NR Short? And any 540 Schedule to be attached?

    Lastly, what should I write in "Recovery Credit rebate" in federal? Since my status changed from single to married, am I eligible to receive additional $600?

    Thanks again!
    cyrsmac's Avatar
    cyrsmac Posts: 3, Reputation: 1
    New Member
    		  
    #4

    Apr 2, 2009, 11:48 AM
    Please help!
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #5

    Jun 2, 2009, 12:40 PM
    Yes, you should have qualified for the RRC if you filed jointly with your wife.
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