[baddey]

Brief History:

I came to the US (Oklahoma) in August-2002 as a student (F1) from India. Since then I have been filing my tax returns (1040NR-EZ) every year.

Then I got a job in September 2005 and worked on OPT for the entire year of 2005, hence I was still able to file 1040NR-EZ for 2005.

Starting exactly on January 1st 2006, I have been working on H1B visa. Also, I got married in 2006 and my wife was on H4 (dependent) visa. She did not work in 2006, but this year she started school on F1 visa. Basically, she now has a SSN.

My questions:

1. What will be my tax-status (NRA/RA)?
2. Which form do I need to file for federal taxes?
3. Can I claim my wife as a dependent?
4. Can I take advantage of the India-US tax treaty?

Thanks for your time and guidance.

Regards,
-BADDEY:confused:

[AtlantaTaxExpert]

1) Resident alien.

2) Form 1040, 1040A or 1040EZ.

3) Yes, because she is a non-resident alien spouse. You can also file jointly, but then she becomes a resident alien as well.

4) No.

[baddey]

Thanks ATE,
Your help is really appreciated. I have some follow-up questions to clarify further.

From your response I realize that we will have to file 1040, 1040A or 1040EZ. If I file for 2006 as 'Married filing Joint' I can claim her as dependent (extra $8450 deduction), but by doing so my wife becomes Resident-Alien; right?

The problem is she started full-time school (F1) in 2007 and is now working on-campus.

1. If I file for 2006 as stated above, what will be her status in 2007?
2. If she becomes NRA, do we file Joint OR Separate (myself-RA and herself-NRA)?
3. If she is RA for 2007, then can she take advantage of SS/Medicare exemption and US-India tax treaty?

I am ready to forego short-term benefits for accuracy of filing in long term.

Thanks again for your able guidance.

Regards,
-Baddey

[AtlantaTaxExpert]

When you file jointly, she is NOT your dependent, she is you SPOUSE (co-equal).

By filing jointly, she is a resident alien irrespective of her F-1 visa until she make the conscience choice to file as a NRA.

2) If she becomes NRA, you file Married Filing Separately.

3) No.