[un_dependent]

Hello,

I have a question about taxes. My case is a bit complicated, here are some details.

I am native from Venezuela and have lived in the US for almost 20 years. Started with a J-1 for 13 years (undergrad/grad/postdoc), changed to an H1B for 4 years while I was working outside the university, and then had to become a J-2 dependent to my husband in September 2010 because we moved and had to resign (husband is on a J-1 visiting scholar).

I filed as a non-resident for the first few years, but then started filing as a resident, as expected. I also started filing jointly as resident with my husband after we got married, as expected. I never claimed treaty exemption.

Since I have been on a J-2, I have become an independent contractor. I got a 1099-MISC from one university and a 1042-S from another, neither universities withheld taxes (the 1042 has income code 16 and exemption code 04). My husband had his taxes withheld by his employer based on him considering me a dependent and of course assuming that we'd be filing jointly (I had no idea how long it would take me to find a job). That is all reflected in his W-2 form.

The questions are: can we file jointly as we have done so far? Can we file as residents? I have always used turbotax and after much reading I figured I would be getting 1099s from both schools, but now I don't know what to do with the 1042 form.

I appreciate greatly any expert advice.

[MukatA]

You must file resident tax return. You can file joint return.
On form 1042, the income code 16 means you have income from personal services so it will be treated just like 1099-misc. Exemption code 04 (exempt under treaty), but in your case the income is not exempt. So report 1042 income on separate schedule C or C-EZ just like you will report 1099-misc income. http://taxipay.blogspot.in/2010/02/h...eductions.html

[un_dependent]

Thank you so much for your prompt reply!

[un_dependent]

Dear MukatA, one more thing if you please, we are assuming that my husband is a resident for tax purposes (J-1 visiting scholar since September 2010, F-1 student for more than 5 years before then), does that sound right? We were filing jointly as residents when I was on the H1B and he in the F-1.

[MukatA]

A U.S. citizen or resident can file joint return even when the spouse is nonresident alien and even has never been to U.S. Also once you complete 5 years on F1, you are resident unless you leave U.S. and complete residency in other country.