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    nishantmenon's Avatar
    nishantmenon Posts: 1, Reputation: 1
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    #1

    Aug 18, 2007, 12:25 PM
    Spouse outside US for part and in US for part of the year - file single or joint ?
    Hi,

    I have been working in the US (RI) since Aug 2006. My wife has been living and working in India all this time. However, in Aug 2007, she came to the US (CA) on an independent work visa.

    For financial year 2007, would it be beneficial / correct for us to file taxes individually or jointly ? Last year (2006) I filed as single.

    Summary:
    Jan 2007 - Jul 2007: I was in earning and living in US, spouse was earning and living in India
    Aug 2007 - Dec 2007: I will be earning and living in US (RI) and spouse will be earning and living in US (CA) - in difference states and living apart.

    Please advice.

    Thanks,
    Nishant
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #2

    Aug 19, 2007, 07:18 AM
    Nishant:

    More than likely, you will benefit by filing jointly, because you can then claim the JOINT standard deduction of $10,600.

    She will have to pay taxes on the income earned in India if you file jointly, but that will be partially offset by claiming a credit for the Indian taxes using Form 1116.

    The alternative is for you both to file separate tax returns, you probably as a resident alien and your wife as a non-resident alien. You will be able to claim the standard deduction for yourself, but your wife will NOT be able to claim this deduction.

    The only way to know for sure which is best is to perform the calculations both ways.
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