[av578]

Hi,

I am an Indian citizen. I came to the US on a F1 Visa in August 2006. I graduated in May 2007, applied for OPT status and joined a US corporation as a in-house legal counsel in November 2007. (I work under the direct supervision of a senior level executive).

I am married. My husband came to the US on F1 Visa in August 2008 - he is not working in the US and does not draw any income currently.

Can you please advise me which forms I need to file?

Also, are there any deductions that I can claim either under a tax treaty between US and India or on account of my marital status?

Thank you very much,
av578

[AtlantaTaxExpert]

You will need to file Form 1040NR if you ended 2007 under a F-1 visa. You can claim a standard deduction of $5,350 and you can also claim your husband as a dependent. You will have to apply for an ITIN using Form W-7 for your husband.

If you converted to H-1 or H-1B before 1 December 2007, you can file jointly with your husband 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 husband).

The downside is that:

• you must WAIT to meet the Substantial Test before you can file, which means you must wait until sometime in June 2008.
• 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. The W-7 will also have to be submitted as well.