[Joyie]

Hi,

I was on F1 visa for 5 years. I had CD's in banks. This money I had from India (not earned in US) for tution purposes, fortunately I could cover the expenses through my stipend-- hence the CD's are intact.

As F1, I filled the W8 BEN form, and did not pay the tax on interest.

Now I am on H1B visa from the mid year 2008. I did the substantial presence test, and am told that hence forth I will be filing as a resident for tax purposes.

My questions are:

1. Will my CD's now attract tax on interest (this money was not earned in the US)? Or can I still fill the W8 BEN form?

2. Initially though I kept this money in CD's as a student for emergency fund- now that I have a job-- I would like to invest it in stocks/ MF/ or debts as the CD rate is extremely low. How can I go about that?

Also an additional question is:

1. My spouse is in India. He was initially on F1, then F2, and now will apply for H4. As a F1, I did file my tax return as a joint holder. Now I am told that I can file my spouse as a dependent, even if he stays in India. Also he has an income in India. Can I still file him as dependent.

Thanks

[MukatA]

On H1-B, if you complete SPT or if you choose to file joint return as residents, then you must report interest on CDs for full year 2008.

About additional question:
On F1 you can only file nonresident tax return.
On H1-B, your spouse you can file joint return as residents and both must report worldwide income for 2008.

[neil-e3]

Not an expert like many others here. So you can safely ignore me.

Assume your parents back home ? Are they retired ? Move your invest
Ments in their name. Forget the rest.