[bsaha1981]

1) I am presently on OPT visa status - validity from 15 July 2011 to 14 July 2012. I am married and my spouse is already employed in another company. I just joined my new job. My employer had filed for my H1B before I joined them. My H1B petition has been approved and if I am not wrong I should receive my H1 visa this October. I have learnt that typically, I should be able to get the tax exemption as per OPT standards until 14 July 2012 (if I do not leave the country before that date). After 14 July 2012, I will be taxed as per H1B standards. I would request you to please confirm if that is true.

2) If the answer to the above question is Yes - then, I would need your advice on what to fill up in the W4 form in order to get the tax exemption:
Total number of withholding allowances that you are claiming:
Additional amount, if any, you want withheld from each paycheck:
Exemption StatusI claim exemption from withholding for the current year, and I certify that I meet both of the following conditions for exemption:
1. Last year I had a right to a refund for all federal income tax withheld because I had no tax liability and
2. This year I expect a refund of all federal income tax withheld because I expect to have no tax liability.
If you meet both conditions select "Exempt" here:

3) Finally, please let me know if there are any specific instructions I need to follow while registering for the state and federal tax forms.

[taxesforaliens]

Once you switch to your H1B visa, you are no longer eligible for any tax exemptions under OPT.
Could you provide some more information? What country are you from and how long have you been in the US? And your spouse?

[bsaha1981]

Thanks for your answer. We are originally from India. I came to the US in early 2008. I joined full time MBA in Fall 2009. My husband has been here in the US longer than me. He is presently on H1.

[AtlantaTaxExpert]

It does not really matter what is his home country, because he likely will file jointly with his wife and the both CHOOSE to be treated as resident aliens for all of 2011.

For the W-4, they should BOTH claim MARRIED status. The one with HIGHER salary should claim ONE allowance, and the one with the lower salary claims ZERO allowances. Do NOT file EXEMPT; that is NOT PERMITTED under IRS withholding ruules for foreign nationals working in the United States.

For the state withholding, they should BOTH claim MARRIED with ONE allowance.