[amazin]

Hi,
I am on a h1 status since oct '09 and my wife is still in F1 since 2008. After going through some of the threads, I still have few queries regarding the Form I need to file.
1. It looks like I need to file 1040NR since I do not have enuf days for SPT this year.
2. I can wait till may and file first year resident. If I opt for this, will I get the deductions only for the resident days (oct-dec) from 1040? What makes this option better than 1040NR. I am not a indian citizen so do not have the treaty deduction besides the standard one. I am not sure if the deduction should be prorated for the resident months.Please elaborate.

Thanks

May

[MukatA]

Choice 1: You can file non-resident tax return. Your spouse can also file nonresident tax return.
Choice 2: You can file resident tax return as Married Filing Jointly. You will have to wait for 5 months to file your tax return till you meet the Substantial Presence Test (of 183 days) in 2010. Your U.S. Tax Return: Substantial Presence Test

You will get standard deduction of $11,400 and exemptions ($3,650 each) for both of you.
You must both declare your worldwide income for 2009. Your U.S. Tax Return: The U.S. Visas

[spawar4]

Hi,

I was on F1 visa until Sept 30th,2009 and since then I have been on H-1B. As I fail to meet SPT, I need to fill out 1040NR-EZ form. My questions are :
Can I include US-India treaty ($5450, item 11) and personal exemption ($3650, item 13) on the form ?
I am married and my wife is also on H1B (she was on F1 until sept like me), does that change the forms I fill out? Should I file separately or jointly?

I hope ATE or Mukata will answer my questions. Thanks,

-SP.

[amazin]

Thanks MukatA for the prompt reply!

So I need to defer my tax application if I opt for choice 2 as you mentioned. Me and my wife, who also has some income through school, should defer our returns I would think right.

Not to question what you suggested, but to convince myself, I could not find that I would get to do the deduction and exemption for the whole year. As per p519,page9,under first-year choice:
"If you make the first-year choice,your residency starting date for 200x is the first day of earliest 31-day period...."
How I could interpret is that your residency date is the first day of the earliest 31-day slab of H1B status. If this prevails, do I have NR and R status for the whole year making this filing not a sought after kind for me a I get deductions for 2 31-days slabs only.

Could you shade some light or point me to the right publication. I'd appreciate that.

Thanks

Ps: @spawar4: please don't hijack threads.it gets confusing to others.

[AtlantaTaxExpert]

For BOTH Posters:

You can file jointly with your wife and you both CHOSE to be treated as resident aliens. This will allow you to claim the $11,400 joint standard deduction plus two $3,650 personal exemption (for yourself and your wife).

You will need to submit Form W-7 to apply for ITIN for your wife if they have no SSN. A notarized photocopy of her passport needs to be stapled to the W-7. You can get the photocopy notarized at any local bank or, failing that, at your local IRS office.

The downside is that you must WAIT to meet the Substantial Presence Test before you can file, which means you must wait until May or June 2010.

Even with the downside, this is probably the best way for you to file.

If you want professional help doing this, email me at [email protected].

[amazin]

Thanks!

[hkswma]

For BOTH Posters:

You can file jointly with your wife and you both CHOSE to be treated as resident aliens. This will allow you to claim the $11,400 joint standard deduction plus two $3,650 personal exemption (for yourself and your wife).

You will need to submit Form W-7 to apply for ITIN for your wife if they have no SSN. A notarized photocopy of her passport needs to be stapled to the W-7. You can get the photocopy notarized at any local bank or, failing that, at your local IRS office.

The downside is that you must WAIT to meet the Substantial Presence Test before you can file, which means you must wait until May or June 2010.

Even with the downside, this is probably the best way for you to file.

If you want professional help doing this, email me at [email protected].

AtlantaTaxExpert, another question please:

I'm on H-1B and my wife is on H4 with no SSN and not working as well.

On my W-4 (personal allowances calculation) should line C = 1 (for spouse)
Should I file as head of household since it's one job that pays for everything at home?
Should I file as single, head of househould or married, head of household or just married?

Thanks for the advice in advance.

[AtlantaTaxExpert]

As a foreign worker, you have FIVE choices when it comes to Form W-4:

- SINGLE with ZERO allowances
- SINGLE with ONE allowance
- MARRIED with ZERO allowances
- MARRIED with ONE allowance
- MARRIED with TWO allowances

These restrictions exists to ensure enough money is withheld from your salary to cover your income tax liabilities, and it almost always results in a large over-withholding of income taxes. It gives you an incentive to file that one last tax return when you return to your home country.

I recommend you select MARRIED with TWO allowances.

[hkswma]

AtlantaExpert, thank you for your reply. I'm a bit confused with the no. of allowances since I have 3 kids. My total allowances on the w4 now is married/7.
Do I have a maximum of 2 allowances only.

[AtlantaTaxExpert]

Yes, that is ALL alowances that you are allowed, regardless of how many children you have.