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rupalsharma · Aug 30, 2010, 11:51 AM

Hi,

My situation is like this:

I was on OPT (F1) status till October 1, 2009 and was exempt from FICA taxes from Jan 1 to September 30th last year. I got married in October and filed 1040 NR and got Std deduction for me and my wife as per article 21 for Indian students. Now, I want to file an amended return with 1st year choice and file a joint return with my wife since I passed the SPT in June. The pros being I will be able to get make work pay credit and married filing jointly refund, however I am concerned if IRS will ask me to pay FICA taxes for my F1 period as I am filing as resident. Please advise if I file as resident now , am I supposed to pay FICA taxes during my exempt period. Also my wife has ITIN no, is she eligible for make work pay credit while filing a joint return or not?

MukatA · Aug 31, 2010, 05:21 AM

Don't worry about FICA taxes. IRS will not ask you to pay this.

rupalsharma · Aug 31, 2010, 05:57 AM

Originally Posted by MukatA

Don't worry about FICA taxes. IRS will not ask you to pay this.

Thanks MukatA, please also let me know if both my wife and I are eligible for make work pay credit! Appreciate your response.

AtlantaTaxExpert · Aug 31, 2010, 07:51 AM

Yes, you are eligible for the Making Work Pay credits if you file jointly with your wife.

wnhough · Aug 31, 2010, 10:19 AM

QUOTE," Also my wife has ITIN no, is she eligible for make work pay credit while filing a joint return or not? "--- Only US citizens and resident aliens with a valid SSN are eligible for the Making Work Pay credit.
Any person claimed as a dependent by someone is not eligible for the credit. For example, kids who are working, including college students who are still claimed as dependents, are not eligible for the credit.

rupalsharma · Aug 31, 2010, 11:10 AM

Originally Posted by wnhough

QUOTE," Also my wife has ITIN no, is she eligible for make work pay credit while filing a joint return or not? "--- Only US citizens and resident aliens with a valid SSN are eligible for the Making Work Pay credit.
Any person claimed as a dependent by someone is not eligible for the credit. For example, kids who are working, including college students who are still claimed as dependents, are not eligible for the credit.

I have an SSN and I am filing a married filing jointly return with my spouse, am I not eligible for $800 make work pay credit? There is no question of dependents here! Does she need to have a SSN for the $800 credit?

wnhough · Aug 31, 2010, 11:49 AM

QUOTE," I have an SSN and I am filing a married filing jointly return with my spouse, am I not eligible for $800 make work pay credit?"---You are eligible for the credit; You have a valid SSN. For MFJ, IF NEITHER has a valid SSN, then MWP credit is ineligilbe.
"Also my wife has ITIN no, is she eligible for make work pay credit while filing a joint return or not?"--As said, you have a valid SSN while your spouse has an ITIN, right? While ITINs aren't eligible for the credit, the language of the statute doesn't specify what happens when only one person, you, has a vcalid SSN and a joint return is filed. The credit isn't $400 per person - it's $400 for filing statuses other than MFJ, and $800 for MFJ. If you look at the statutes, it seems to say that a SSN-holder married to an ITIN holder would get $800 if the SSN-holder had earned income.
For further info. Please visit the website;Most Workers Need to File New Schedule M; Making Work Pay Credit Offers Tax Savings Up to $800

rupalsharma · Aug 31, 2010, 12:25 PM

Thank you very much for the clarification.

AtlantaTaxExpert · Sep 1, 2010, 09:35 PM

If one of the joint filers has an ITIN, then both are still eligible for the Making work Pay Credit.

I have filed multiple returns this past year with one filer having an ITIN with no problems.

wnhough · Sep 1, 2010, 09:44 PM

Agreed!