[devang21]

Hi

I'm on H1B visa since April 2005 and my wife joined me in October 2005 and she is on H4 visa. Before coming to Dallas, Texas we were in Albany, New York so we've state tax for that period to file.

Now the problem is
1. We don't know our status i.e. are we Resident Alien or Non Resident alien? So we don't know which form to fill in for federal tax (we don't have any income other than the salary)
2. Can we file our Federal and State tax form here i.e. Dallas
3. My wife doesn't have TIN no. we still have to apply
3. For State tax we don't know which form to fill in and now since my wife doesn't have the TIN# so do we've to apply for time extension for state tax.
4. I just read something about social security tax and medicare tax refund, so are we eligible for it, if yes then how?

We would be really obliged if you can help us with the answers to above questions

Thanks in advance,
Devang Shah

[AtlantaTaxExpert]

Mr. Shah:

1) You are a resident alien because you met the Substantial Presence Test. You should file Married Filing Jointly with your wife. She will be treated as a resident alien because she is filing jointly. You can probably file Form 1040EZ. If s, prepare it, put both of your names on it but leave the SSN field for your wife blank!

3) Download a W-7 from www.irs.gov, have your wife sign it and attach it to your tax return with a notarized copy of your wife's passport.

2) You must mail your federal return to the following address:

INTERNAL REVENUE SERVICE CENTER
PHILADELPHIA PA 19955

The IRS personnel there will assign an ITIN to your wife, insert the ITIN on your tax return, and then process it. They will notify you by mail what her ITIN is and it will take about six weeks.

3) You must wait for the ITIN before you file the NY tax return. Texas has no state income tax. You can get the forms from the NY state government website. If you have a refund coming from NY, an extension really is not necessary.

4) The Form to claim the refund for Social Security and Medicare taxes is Form 843. Download IRS Pub 519 and read page 46 for the procedures. The item in red is accurate. However, it implies you can file as a resident alien and still claim this refund. That is NOT CORRECT. If you file as a resident alien, you FORFEIT the right to claim any refund for improperly-withheld Social Security and Medicare taxes!

If you want my help (for a fee), contact me at [email protected].

[devang21]

Thank you so much with the answers, just additional queries

Can't we file federal tax in person in Dallas itself and get the ITIN personally and mail the state tax and in W7 form is the option e right for my wife?

Thanks in advance
Devang.

[AtlantaTaxExpert]

Devang:

You can try, but it is my belief that issuing of the ITINs by the IRS has been centralized to the IRS Center in Philadelphia. IRS Pub 519 instructions consistently tells us to send all returns and application to the Philadelphia IRS Center.

Before you go, I would call the Dallas IRS Center and ask if they will issue your wife an ITIN.

[devang21]

Thank you so much

I just read one of the posts about sales tax, we also bought a car in December and a laptop in February 2006 so can we claim it, if yes, then which form to use. If yes do we need to attach the copies of our receipt and Can we also get some deduction for the Car insurance premium or dental or health insurance premium?

I would summerize about what I understood so far,
We've to apply with form 1040EZ with a W-7 form for my wife's ITIN then once we get the ITIN we've to file the state tax.

You can correct me if I'm wrong and if you got enough time.

You are really a great help to all of us

Thanking again for your help
Devang

[AtlantaTaxExpert]

You claim the sales tax on Schedule A under the "Other tax" section.

Sorry, no deductions allowed for the medical, dental or car insurance premiums.

Finally, do not mail the return to the Philadelphia IRS Center. While any return like yours sent to that address will be forwarded to the address below, it will delay the processing of your return. Instead, mail it to the address on the W-7 instructions, which is:

Internal Revenue Service
Philadelphia Service Center
ITIN Unit
P.O. Box 447
Bensalem, PA 19020