[tax_calculate]

Hi,
I have come to US on H1B in Oct,2005 and my spouse joined me in Dec,2005 on H4 ( spouse is not working).


So, am I a resident alien for filing taxes for the year 2005 ?

I want to know what should my spouse state as reason on form W7 for applying for ITIN no - d/e/g
D - Dependent of US citizen / US resident alien
E - Spouse of US citizen/resident alien
g- Dependent/ spouse of a non resident alien holding a US visa .

I have spent less than 183 days in USA in 2005 and I have not visited US ever before. So is my status a resident alien or non -resident alien for filing taxes for 2005.

I am currently working in US in CT.


Thanks

[AtlantaTaxExpert]

Technically, you are still a non-resident alien.

However, your H-1B visa will make you a resident alien for 2006.

Under First Year Choice, you can until 2 June 2006, then file as a resident alien for 2006. This will allow you to claim $10,000 for the standard deduction for yourself and your wife. That option is not available if you file as a resident alien (even if you are from India).

On the W-7, have your wife claim E.

[tax_calculate]

Hi,

I am a little confused now.

Should I file my taxes by April 15, 2006 for 2005 ? Or should I wait for 2nd June, 2006 for filling taxes for 2005?

1) Do I still need to fill form 1040EZ for filing tax returns ? Status - married and filling jointly. ( No children , spouse not working) or is it some other form if technically I am a non resident alien for 2005 for tax purposes.

2) My spouse need to fill the ITIN form application for filling mine 2005 tax returns with optione e if I file taxes by April 2005?


Please advice.

Thanks

[AtlantaTaxExpert]

Tax-Calculate:

First, file Form 4868 to request an extension. Prepare your return to see if you owe money (possible, but not likely). If you owe money, then mail in a check with the Form 4868. If you are due a refund, just mail in the Form 4868. The extension is automatic and, in fact, you can file the For 4868 online at www.irs.gov.

1) You can use Form 1040EZ.

2) Yes. You wife should claim option E on the W-7, which you then mail with a notarized photocopy of her passport.

[tax_calculate]

Thanks a lot for answering.

I still have couple of questions -

1) Why do I need to file for extension using form 4868 ? Does it change my non -resident status to resident for filing taxes for 2005 ?

2) If the answer to first is yes, then I file my form 1040 EZ after I get the extension approved and before the expiry date of extension. After approval of extension, I file my 1040EZ along with ITIN form any time or I have to file after 2nd June, 2006 ?

3) Form 4868 has a line requiring Spouse's Social security number. Now, my spouse does not have it . So what do I fill here ?

4) My Federal tax liability for 2005 is 0 for married filing jointly status. Total tax liability does not take into account state taxes in any way as it refers to line 10 of 1040EZ only. Is that so ?

5) What is the maximum refund I can get ? Federal plus state taxes paid in 2005? Medicare and Social taxes deducted will not be refunded ?

My nationality is Indian.

Your response will be highly appreciated as this tax system is new to me.

[AtlantaTaxExpert]

1) The filing of the extension does not change your filing status. The filing of Form 1040 does that. You just need to file the extension because you are missing the 15 April 2006 filing deadline.

2) Approval is automatic; the IRS will not even acknowledge receipt of the form. You file the Form 1040EZ with the W-7 after 2 June 2006, because at that point in time, you qualify as a resident alien under the Substantial Presence Test.

3) Put the word "APPLIED FOR" in place of your wife's SSN.

4) Tax liability for states is NOT a consideration.

5) Your max refund will be what was withheld. Social Security and Medicare will not be refunded by filing Form 1040EZ.