[bala5]

Hi,
I am working in US on H1B for last 2 years. I am getting married in Dec 2008. I will bring my wife in H4 dependent visa in end of Dec.

a) How should I file the tax? Married filling jointly?
b) Can I claim my wife as dependent?
c) What benefits I could leverage? (especially after paying lot of taxes as a single for entrire year)

Please advise.

[MukatA]

If you get married in 2008, you can file joint return as residents even if your wife has never been to the U.S.
On joint return, you both get exemptions ($3500 each) and standard deductions ($5,450 each).

[AtlantaTaxExpert]

As MukatA points out, you get significant advantages by filing jointly, which will make the first $17,900 of your income tax free.

Further, if your future wife decides to pursue educational opportunities in the U.S. you will be eligible to claim tuition credits or deductions to help with the cost of those opportunities.

[bala5]

Hi , Thanks for replying. I have been told by someone that I cannot claim my wife as dependent as she at least need to have been in US for 6 months for that year. Is that true? Since, she will be coming in 2008 dec end, can she be considered as dependent and claim returns filing jointly? Please clarify.

Again, thanks for all your replies.

[taxexpert]

Hi,
I have the similar Question.
My wife is joining me in December 2008.
Should I change my marital status now OR can I change it once she is in USA?

Regards

[AtlantaTaxExpert]

To file jointly, your wife's physical location is irrelevent! She could be on Mars for all the IRS cares. When you file jointly, your wife is NOT your dependent; she is your co-filer and is treated equally in the eyes of the IRS.

BTW, this also means that any income she earns while in her home country becomes subject to U.S. income taxes.

TaxExpert:

Based on the information above, you can change your marital status now.

[bala5]

Ok, What I understand from you is as below. Please correct me if I am wrong and clarify my other questions.

a) I can file as Married Filing Jointly.
b) I cannot claim her as dependent because she was not in US for 6 months
c) When I file as Married filing jointly treating her as cofiler, I should also show her income in India while filing taxes.

Below goes my other set of questions:
a) My wife worked in India and paid tax there. Should that amount be taxable again?
b) If I need to show all her income in India, what proof I should be showing to IRS. Just the pay checks should do?
c) My parents were here in US for 6 months in year 2008. Can I claim them as dependants? Is that possible? If yes, what proof I should be showing them?
d) I had spent 3 grands for my parents for their medical treatment. Can I take any benefits from that while filing tax,

Your expertise is required for me. Please help me.

Bala.

[AtlantaTaxExpert]

Second set of questions:

a) Yes, but you can file Form 1116 and get the Foreign Tax Credit, which will at least partially offset the double taxation.

b) You need to report the income; no proof needs to be provided unless requested by the IRS. Pay check stubs will suffice if requested.

c) That's a questionable deduction. First, your parents MUST meet the Substantial Presence Test (SPT) and you MUST provide more than half of their total support throughout the calendar year. More than likely, your parents were here on B-1/B-2 visas, which are designed to have them NOT meet SPT. The prrof would be copies of the stamped visas which shows their arrival and departure dates. If the total stay does NOT exceed 183 days, they have NOT met SPT.

d) In order to deduct your parents' medical expenses, they MUST be your dependents.