[md164]

Hi,

I am on H1 B visa in US. I got married in July 2007. My wife is on H4 in US with me since Aug 2007. Before that she worked in Canada up to April so she is going to file her tax return in Canada.

In this case, can I file my US tax return jointly with her?
Do I need to declare her income on MFJ since she is on H4?

Any response would be appreciated.

Thanks

[AtlantaTaxExpert]

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.