[bulan]

Hi!
I need some help with my taxes. I have no idea what to do.
My status is:

Citizenship: india.
f1 : 2002 aug - 2006 jan
Opt: 2006 jan - 2006 oct
h1b: 2006 Oct - present.
Spouse (indian): f1 since 2003 aug.

Question:
1) what forms do I use?
2) do I meet the substantial presence test? Or do I have dual status?
3) can I use the India-Us tax treaty? What other exenptions can I claim?
4) can I file jointly with my wife? If so, what forms do I need?

Can please some help me out with these questions.
Thanks,
bulan

[AtlantaTaxExpert]

You have a choice.

You can file as a non-resident alien and claim your spouse as a dependent IF he/she had NO income in 2006. This will allow you to claim your and your spouse's personal exemption of $3,300 each, plus a standard deduction of $5,150.

OR

You can file dual-status, which offer NO advantage tax-wise over filing as a non-resident alien AND requires you wait until June 2007 to file.

OR

You can file jointly with your spouse, with you BOTH choosing to be treated as resident aliens for all of 2006. This allows you to claim a DOUBLE standard deduction of $10,300 plus both personal exemptions ($6,600), for a total tax deduction of $16,900.

Two drawbacks to the last option:

1) You must declare ALL of your world-wide income.

2) Your spouse is henceforth treated as a resident alien. If later, he/she begins work on OPT, he/she will have to pay Social Security and Medicare taxes while on OPT.

If you need my professional tax help, contact me at [email protected].