[tonow]

My wife changed her status from H4 to F1 in August. Based on substantial presence test she qualifies as a resident. Based on previously answered questions on the related topic, I assume we can file taxes as resident.

1. My question is do we still need to submit a statement that my wife chooses to be treated as resident alien even though she qualifies as a resident based on substantial presence test.

2. Do we need to submit this statement every year she is on F1 or just the first year.

[AtlantaTaxExpert]

If she previously filed a tax return as a resident, she has the choice of continuing to file that way.

However, if she chooses to file as a resident, then she will be liable for FICA (Social Security and Medicare) taxes when she works under CPT or OPT, whereas if she files as a non-resident, she would be exempt from those taxes.

[tonow]

Thanks Atlanta Tax Expert. She has been filing as a resident for the last few years on H4 visa. She has been on F-1 only for last 5 months of 2010. But she will be starting to work on CPT/OPT this year. When I asked her University (her employer) to withhold FICA taxes, they said that they cannot do that.

Does that mean that starting next year she will have to file as a non-resident or is there a way for her to file the taxes jointly with me as a resident.

Thank you

[tonow]

I forgot to mention that she had been filing taxes as married filing jointly with me for the last few years as she had no income. Thank you for the help.

[AtlantaTaxExpert]

Actually, the university is correct to NOT withhold FICA, based on the link below:

http://www.irs.gov/businesses/small/international/article/0, id=96370,00.html

So she can continue to file jointly with you.