[EstPA]

HI, recurent questions but I am really lost.
We are a french couple arrived in the US in July 2005 on Research J1 visa.
I switch to H1B visa in May 2007 while my husband stay as a J1. We've been working in the USA since July05 with occasional trip back to France.
Federal taxes began to be withhold for me in June 07 and for my husband in July 07 ( 2 years tax treaty for France-research-). Here are my questions

1) Could we fill as residents Aliens
If so a) 1040 EZ are OK?
b) should we put our interest from french saving?

2) will we receive a 1042S later on for the income part that wasn't taxable by USA?

3) Would we have to pay back the taxes we didn't paid on federal income for 2006?

Thank you so much for your help

[AtlantaTaxExpert]

1) Yes, you can and, yes, Form 1040EZ is okay if your combined taxable income does not exceed $100,000. However, you must attach a signed statement to the return stating you BOTH choose to be treated as resident aliens in 2007.

b) Yes; ALL world-wide income is taxable if you file as resident aliens.

2) Maybe. Contact the school tahtwould issue the Form 1042-S.

3) Probably. If your husband was total exempt, then exceeds the two-year limit, he must pay the back taxes that become retroactively due.

[EstPA]

Thanks for your help