[chikudee]

Hi ,
I am new to this site but just going through the threads, I think it's a great forum!

Well here's my question (or questions rather!! )

I was on an F-1 student on OPT and worked full time from March 2005 onwards. I changed to H1B status on Oct 1, 2005.
Should I file 1040 or 1040NR?

Also my wife was on F2 and her status changed to H4 on Oct 1, 2005 - Can I claim her as an exemption?

Thanks,
Tax nerd:confused:

[AtlantaTaxExpert]

Chikudee:

You are a dual-status alien; so is your wife. Unfortunately, you cannot file a dual-status return jointly.

For this reason, I recommend that you wait until early June to file as a resident alien under the First Year Choice. Your wife can then jointly with you and you can claim both personal exemptions (for a $6,400 deduction) and a standard deduction of $10,000. Be sure to file the extension (Form 4868) and make a payment if you think you will owe taxes.

[chikudee]

Thanks! Yes this helps a lot.

Just wanted to tell you that my son is a US citizen- so can I still file right now as a NRA and claim only him as a dependent (that is leave my wife out for now) and will I still be eligible for the Child Tax credit?

Thanks in advance!

[AtlantaTaxExpert]

Possibly, but WHY??

If you file immediately as a NRA, you lose a deduction of $8,200 for your wife. If you wait, you get the deduction.

In my opinion, this is a no-brainer decision, unless the combination of your personal exemption & standard deduction plus your son's exemption already completely offsets your taxable income.

[chikudee]

He! He! He! I already told you I am a tax nerd:confused:

Of course you are right about it being a no-brainer!
I will certainly wait- I just wanted back my refund real faaaast!! But I guess waiting will make the refund fruit even sweeter.

Thanks once again for your advice.

Regards,
Now much less :confused:

[AtlantaTaxExpert]

Advice is the reason we are here!