[luck0bird]

I am an international student with F1 VISA(<5 years study). I used my CPT this summer for a 3-month internship in a non-my-school state. During that time, I was paying that state's State Tax and Federal Tax. I got married with my husband in September. He has been in US for 6 years with F1 VISA. We purchased a new car at the end of 2008.

Now I am back in my school town and prepare my tax refund for 2008. I have a couple of questions and truly appreciate anyone's help.

(1) Should I file married but filed separately or jointly or even other status to get more tax refund if I am eligible?

(2) Is my husband qualified for the new vehicle registration deduction? If he is going to use this itemized deduction, am I required to do so either? In that situation, am I still eligible for the tax treaty deduction between US and other country?

Thanks for your help!:)

[MukatA]

Your husband, after 5 years on F1, is resident for tax purpose. You can both file joint return as residents. That should be best option for you.

[luck0bird]

Thanks MukatA. How about the Vehicle registration deduction?

[MukatA]

Either take standard deduction of $10,900 (on joint) or go for itemized deductions on schedule A (Form 1040).

[AtlantaTaxExpert]

The vehicle registration deduction is normally a deduction for the property or ad valorum tax paid on vehicle when you register them.

This is an itemized deduction listed in the TAX portion of Schedule A.

In order to itemize, the total of all itemized deductions must exceed your joint standard deduction of $10,900.

Unless you own a house on which you are paying a mortgage and property taxes OR unless you live in a state with a HIGH income tax, it is virtually impossible for a couple with normal itemized deductions to exceed that $10,900 barrier.

[luck0bird]

Thanks for AtlantaTaxExpert.

Where is that $10,900 deduction from? Is it the state tax deduction?

My husband and I are both Chinese students. He has been in US for more than 5 years. I have only stayed in the US for 4 years. Am I the only person in my household eligible for the US-CHINA tax treaty deduction?

Thanks for your help.

[AtlantaTaxExpert]

The $10,900 is the standard deduction, a set amount that ALL married couples can claim instead of itemized deductions. You and your spouse can also claim it as well.

Further, because you are Chinese, you each get to claim the $5,000 treaty exemption under an exception to the Savings Clause in the U.S.-China Tax Treaty. You would claim this $10,000 ($5,000 X 2) on Line 21 of Form 1040 as a negative number, with the words "China Tax Treaty Exemptions" written on the dotted line to the left of the #21.