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shirdisaibaba · Feb 11, 2007, 05:17 PM

I am a resident of India. In 2006 I was on F1 status until October 2006 and then on H1-B status from Oct 2006. My husband who is also an Indian citigen is on F1 status for the year 2006. How do I file the tax returns, joint or single? Which form I have to use? Can I go for standard deductions ($5150) and personal excemption ($3300)? I came to US in August 2003 and completed 3 years in US. Am I come under resident category for tax returns? Please explain which form to fill and about the excemptions.

AtlantaTaxExpert · Feb 11, 2007, 10:40 PM

File jointly with your husband and BOTH choose to be treated as resident aliens. That way, you get $6,600 in personal exemption and $10,300 in standard deductions. The only problem is you have to wait until early June to file to meet SPT in 2007.

shirdisaibaba · Feb 12, 2007, 10:35 AM

Thanks so much for your immediate reply. I forgot to tell you one thing that my husband came to United States in January 2004, so I think he is not a resident alien for tax filing. I could not understand why we have to wait until early June and what is SPT? Can you please explain do I need to submit both 1040NREZ and 1040 because part of the year 2006 I was on F1 status and I have not completed 3 years in US to get resident alien status?

AtlantaTaxExpert · Feb 12, 2007, 11:00 AM

SPT means Substantial Presence Test. You must be in the U.S. as a resident for 183 days to qualify to file as a dual-status alien. The time you and your husband were in the U.S. under the F-1 visa DOES NOT COUNT for SPT.

You can count the previous two years time under H-1B, but only one-third of the previous year and one-sixth of the time two years prior counts. Hence, the three months in 2006 you were on H-1B only counts for one month in 2007. Thusly, you will not meet SPT for 2007 until early June, and you cannot file jointly until you meet SPT.

Your husband does not factor into the SPT calculation because he is still under the F-1 visa. However, he is filing as the non-resident spouse of a resident alien (you).

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