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    Cbala's Avatar
    Cbala Posts: 8, Reputation: 1
    New Member
    		  
    #1

    Apr 8, 2009, 11:17 AM
    Does Tax extension changes residency status?
    Hi,

    Please clarify my queries.

    Below are my Visa statuses:

    Aug 2005- Aug 2008 ( Student F1 & OPT)

    OCT 2008- H1B ( I lived 76 days in US between OCT& Dec 2008 in H1B status)

    1)I got married in 19 OCT 2008 & came back to USA after vacation on OCT 26 2008. My wife who is in H4, reached US in 14 dec 2008.Haven't applied for ITIN yet.

    I hope I don't qualify for the substantial presence test in 2008 & hence non resident. Which form should in file in that case?

    2)I heard from my friends that I can apply as resident 1040EZ Married filing jointly, if I could apply for tax return extension till OCT 15 2009.

    I would be passing the substantial presence test for 2009 if extension applied, but how does this affect my residency status for the tax return of 2008?

    Is my understanding correct & legally fine?

    Please clarify. I am confused completely.
    Cbala's Avatar
    Cbala Posts: 8, Reputation: 1
    New Member
    		  
    #2

    May 1, 2009, 02:51 PM

    Hi,
    I have filled an extension for tax filing. Can anyone please answer my above question? Also please let me know when & how can I apply for tax return after satisfying my substantial presence test?
    MukatA's Avatar
    MukatA Posts: 7,110, Reputation: 176
    Tax Expert
    		  
    #3

    May 2, 2009, 10:59 PM

    2: You can file resident tax return as Married Filing Jointly.
    You will have to wait for 5 months to file your tax return till you meet the Substantial Presence Test in 2009. Read Your U.S. Tax Return: Substantial Presence Test

    You will get standard deduction of $10,900 and exemptions for both of you.
    You must both declare your worldwide income for 2008. If you have any foreign income, and on that income you paid taxes in the foreign country, then you can claim foreign tax credit (Form 1116) or you can use Foreign Earned Income Exclusion (Form 2555). Read: Your U.S. Tax Return: U.S. Citizen or Resident with Foreign Income

    You will complete forms W7 (application for ITIN) for your spouse and attach with your tax return.
    Read about H1-B tax filing: Your U.S. Tax Return: The U.S. Visas
    Cbala's Avatar
    Cbala Posts: 8, Reputation: 1
    New Member
    		  
    #4

    Jul 27, 2009, 12:21 PM

    Hi,
    As sugessted, I have waited for 5 months & passing the SPT by Aug 15 2009.
    Can you please clarify on how to apply for tax return as married filing jointly. Can I do that directly in turbo tax after AUG 15.
    Is there any other paper work or remarks to be added as we have applied for extension?

    Please clarify the application process.

    Thank you so much
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #5

    Aug 3, 2009, 11:15 AM
    You file Form 1040 with Form W-7 to apply for an ITIN for your wife. You also attach a statement to the Form 1040 stating that you qualify and CHOOSE to be treated as resident aliens for ALL of 2008.

    Remember that if you earned money in your home country in 2008, you must claim that income on Line #7 of Form 1040.

    Mail the return and the Form W-7 (along with a notarized photocopy of your wife's passport to the address on the W-7 instructions.
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