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    abeshanker's Avatar
    abeshanker Posts: 4, Reputation: 1
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    #1

    Jun 23, 2007, 04:39 PM
    f1 cpt to h1b
    I was working on f-1 cpt from jan 1 until sept 30, and on h-1b from oct 1 to dec 31, 2006.

    I am married, and my wife also received a w-2 for her with New York univ. what is the best way to save on taxes? What should I file as, and what deductions can I ask for?

    Please help!
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #2

    Jun 25, 2007, 10:29 AM
    It is likely that you will get the most tax savings by you and your wife filing jointly (Form 1040EZ, 1040A or 1040) and you both choosing to be treated as resident aliens for ALL of 2006. This allows you to claim a joint standard deduction of $10,300 on top of your joint personal exemption og $6,600. The net effect is that the first $16,900 of your combined income is tax-free.

    It will also allow you and your wife to claim the tuition credit/deduction for 2006 for tuition paid to NYU.

    Contact me at the email address below if you have further questions.
    abeshanker's Avatar
    abeshanker Posts: 4, Reputation: 1
    New Member
    		  
    #3

    Jun 25, 2007, 03:28 PM
    Unfortunately, my wife already filed her tax as Married filing separately. After the personal exemption and the standard deduction, it seems I need to pay the IRS.

    What is the best solution for me in this case, so I don't end up paying them? As you are aware, I was on F-1 for 9 months and H1 for 3 months last year. Can I file as dual status?

    Thank you in advance.
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #4

    Jun 27, 2007, 11:14 AM
    You can amend the return and STILL file jointly with your wife, but only if that is what SHE wants to do.

    You CAN file dual-status, but it will probably offer NO advantage over filing as a non-resident alien.
    abeshanker's Avatar
    abeshanker Posts: 4, Reputation: 1
    New Member
    		  
    #5

    Jun 27, 2007, 11:17 AM
    Will she need to declare herself a "resident" to be able to file jointly? Currently, since she is on F-1, she doesn't need to pay Social Security and Medicare taxes - will filing jointly change this situation?

    Thanks again. I appreciate it.
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #6

    Jun 27, 2007, 11:42 AM
    She will have to declare herself a resident alien for all of 2006.

    This declaratuon will NOT affect her payment of Social Security and Medicare taxes for 2006, but it WILL require she pay these taxes in 2007, retroactve to 1 January 2007.

    Hence, it is likely that it is better that you file as a non-resident alien.
    abeshanker's Avatar
    abeshanker Posts: 4, Reputation: 1
    New Member
    		  
    #7

    Jun 27, 2007, 11:47 AM
    Thank you so very much for all your help. I will surely recommend your services to all my friends.

    Can we file jointly without first me having to file taxes as "married filing separately"? What is the procedure of amending her returns?

    Thanks again!
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #8

    Jun 28, 2007, 09:24 AM
    Filing the amendment would constitute your filing of your tax return. There is no requirement for you to first file as Married Filing Separately.
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