[Biotech]

Hi,

I came to the US as a student (F1) in 2002 and remain F1 status. I believe that I am considered as resident alien for 2007 tax because I stayed in US for 365 days in 2007. My husband was on OPT Jan-Oct. 2007 and he started his H1B visa on Oct.1 2007. Is my husband considered dual-status or resident alien? Can we file the Federal(1040) and NJ1040 jointly?

My husband works for a consulting company which sponsor his H1B visa. He did not get paid in 2007 because he did not get any project. He did not receive a W2 form from his company. How should he file the 1040 and NJ1040? Put down $0 in wages?

Thanks.

[AtlantaTaxExpert]

Yes, YOU are a resident alien because you have exceeded the five-year exemption period for your F-1 visa.

Your husband is a non-resident alien if he files separately.

You can file jointly with your wife and you both CHOSE to be treated as resident aliens. This will allow you to claim the $10,700 joint standard deduction plus two $3,400 personal exemption (for yourself and your wife).

The downside is that you must declare ALL 2007 world-wide income. There are two offsets available, by either claiming a Foreign Tax Credit (Form 1116) or a Foreign Income Exclusion (Form 2555).

Even with the downside, this is probably the best way for you to file.