[deepakz_world]

Hi,
I was on F-1 till Sep'07 and came onto H-1B starting Oct'07. Also, I got married in Nov'07 in India and my wife came to US with me in Dec'07. Since I have been on H-1B only for about 92 days in total till the end of 2007, I cannot be treated as a resident alien. As such, my status at the time of filing would be non-resident alien.
All I want to know here is whether I should file my tax return as 'Married filing separately' or 'Married filing jointly'? I think I get more exemptions if I file as 'Married filing jointly'.
Also, do I have to file form W-7 to get ITIN for my wife?
FYI: My wife is on H-4, came to the US for the first time in Dec'07. She doesn't have an SSN or ITIN and obviously, no income in 2007.

Any help is greatly appretiated.

Thanks

[MukatA]

Choice 1: File nonresident tax return. You will get only your personal exemption and deduction as per tax treaty on the OPT income.

Choice 2: File resident return as Married Filing Jointly. But you can file your return only after you complete 154 days in 2008.

You will get standard deduction of $10,700 and exemptions for both of you. You must both declare your worldwide income for 2007. If you have any foreign income, and on that income you paid taxes in the foreign country, then you can claim foreign tax credit.

You will complete forms W7 (application for ITIN) for your spouse and attach with your tax return.
If you decide to file as Married Filing Jointly as First Year Choice, you must attach a statement signed by both of you to your return stating that you qualify to file as residents as First Year Choice and that you CHOOSE to file this way.

[The Texas Tax Expert]

Your default position is to file as 1040NR.

You may qualify for the First Year Choice election but this is not clear from the information given. It will depend on the number of days that you were in the US versus back in India in the period.

A qualified professional could assist you with this. You should always ask a professional what qualifications they have. If you are not dealing with an EA or a CPA then you are dealing with an unlicensed, unenrolled preparer.

[deepakz_world]

Hi,
I was on F-1 till Sep'07 and came onto H-1B starting Oct'07. Also, I got married in Nov'07 in India and my wife came to US with me in Dec'07. Since I have been on H-1B only for about 92 days in total till the end of 2007, I cannot be treated as a resident alien. As such, my status at the time of filing would be non-resident alien.
All I want to know here is whether I should file my tax return as 'Married filing separately' or 'Married filing jointly'? I think I get more exemptions if I file as 'Married filing jointly'.
Also, do I have to file form W-7 to get ITIN for my wife?
FYI: My wife is on H-4, came to the US for the first time in Dec'07. She doesnt have an SSN or ITIN and obviously, no income in 2007.

Any help is greatly appretiated.

Thanks

Thanks for your quick replies.
Quick question for MukatA:
How can I file my return after completing 154 days in 2008 since the application deadline is April 15th? Also, We didn't have any world-wide income in 2007 apart from what I had in US.
I was in US for the entire year except from Nov 18 - Dec 12 when I went to India to get married.
Considering these facts, do you still think I can file as 'Married Filing Jointly' and get the 10,000+ standard deduction and exemptions for both of us?

[MukatA]

As Texas Tax Expert pointed out, you may not qualify to file as residents for 2007. You need to meet 2 more conditions:
1. During H-B you were present for 31 days in a row.
2. From the date of starting of residency till Dec 31, 2007, you must spend at least 75% days in the U.S.

Read Publication 519: Tax For Aliens, page 8, col. 3, first year choice.

[deepakz_world]

Dear Mukat,
Thanks very much for your reply and I really appreciate your time and effort.
However, I think I was present for more than 31 days in a row (1st Oct - 18th Nov) and also for 75% days of the total (1st OCt to 31st Dec) - (19th Nov to 11th Dec) which comes out to be 92-23 = 69, which is exactly 75%.
Considering these facts, do you think If I file for an extension now and file the return later after I qualify for the substantial presence test for 2008, I should be able to claim 2007 as the First Year choice for Resident Alien status?

[MukatA]

For calculating 75% of the total days you use days from start of 31 day period to Dec 31, 2007.

[deepakz_world]

Finally, I have decided to file an extension and then later file the taxes.
Would the extension paperwork require my wife's signature on any form?

Thanks for all the timely communication so far...
DeEpAk