[DLu]

Hi,

My status: Aug/2007 - Sep/2008. F1
1/1/09-9/30/09. OPT
10/1/09 - 12/31/09. H1B
My wife: Aug/2008 - Present. J1

I know I have first-year choice.
My question is: If we filing jointly, will my wife's income can still get exemption from FICA and Federal Tax? Will it be better for us to filing separately?
Thanks,

DLu

[MukatA]

If you file joint return, your spouse does not pay FICA taxes for 2009, but for 2010 she should start paying FICA taxes.

[DLu]

Thanks for reply.

1. What about Federal Tax? If we file separately, she doesn't need to pay Federal Tax. If we file jointly, will her income become taxable or not? If her income still needs to pay Federal Tax, I think file separately might be better. Am I right?
2. I'm confused about the SPT. Do I need to apply for 4 months extension to satisfy SPT, either I file separately or jointly?

Thank you very much!

[MukatA]

If your spouse is researcher, teacher or professor, she may be exempt for federal income tax for two year as per tax treaty with your country.
In that case do tax return both ways and decide which is best for you.