[bits_75]

Have a few questions. I am an Indian who came to the US on F1 Visa in 2003 graduated in May 2005 and have been working since Oct 2005 on H1B Visa. Last year I filed 1040NR. Here are the questions:

1. Since in 2006 I was on H1B for the full year do I file as a resident i.e.. Use Form 1040?
2. I am married and my wife is on H4. She has her ITIN number. Do I file as "married filing together"?
3. As a student I would get a deduciton of $5000 under the India Tax Treaty Article 12 or 21. On my H1B do I still get the benefit of this $5000 deduction?
4. I have a student loan. Can I claim deduction on interest paid towards student loan?
5. If I file "married filing together" does my wife still have to sned in a separate Form W7.

Thanks
AJ

[AtlantaTaxExpert]

1) Yes, file either Form 1040, 1040A or 1040EZ.

2) Yes, you can file JOINTLY.

3) No, but you DO get the DOUBLE standard deduction of $10,300 because you will be filing jointly with your wife.

4) Yes, you can deduct student loan interest IF you do not make too much money. The income limit for someone filing jointly is $135,000. The maximum deduction allowed is the actual interest paid, or $2,500, whichever is higher.

5) No, not if she already has an ITIN.