[Phanikanth]

Ok, I believe I'm repeating the same question that's been asked multiple times on this forum. Anyway, I still have some queries. Here is my scenario.

I'm an Indian Citizen working on H1b from Oct'2015. Till then, I was an international student from Aug'2013. For the tax year 2015, I was working on OPT(F1) till Sept 30 2015. Also, I got married in Dec'14 and my wife moved with me to US as my dependant(F2) right away in 2014. She joined school in Dec'15 and changed her status from dependent to F1 from then(applied and waiting for SSN to start her part-time job on campus).

Considering all the above, I don't pass the SPT for 2015 till date, but I came across this article that mentions that I'll be eligible to file as US resident for tax purposes if I pass the SPT for 2016(which I believe I'll pass around June'16). I think I can either file for extension till then or just wait till then since I'm expecting a good refund if I file as resident alien.

Now, my question is that, in case I chose to file as US resident alien by the First-Year Choice for married filing jointly clause, do I file as resident for the entire year 2015 or as a dual status (Jan-Sept as Non-Resident Alien and Oct-Dec as Resident Alien)? Can someone advise me on what all forms I need to submit in either case ? Like 1040 or 1040-NR or 1040-NREZ ? And any other forms.

Apart from these, will I be eligible for Standard Deductions like any US Citizen or any treaty tax exemptions(US-India Treaty for students). I paid tuition fees in the first half of 2015 and My wife joined School in Dec'15 and got a Scholarship as well. How do I mention/file all these items in any of the cases that I'm eligible for.

[AtlantaTaxExpert]

By filing jointly, you both file resident for the entire year of 2015.

You will be taxed at Married Filing Joint rates, and you get to claim TWO $4,000 personal exemptions and the JOINT standard deduction of $12,600.

If she paid any tuition in December 2015, she will get to claim an Education Credit for up to $2,500. However, she still retains her F-1 exemption from paying FICA (Social Security and Medicare) taxes if she works in a job related to her studies, either now or in the next four years (2016 through 2019).

To do this, you must wait until 1 June 2016, because you do not meet substantial presence until then. You must also submit a statement, signed by both of you, that you both CHOOSE to be treated as resident aliens for all of 2015.

This makes ALL world-wide income subject to U.S. income taxes, so if you have money in Indian banks, the interest that money is earning must be declared on the U.S. tax return. If you are paying taxes to the Indian government on that interest, you can file Form 1116 to claim the Foreign Tax Credit for that tax payment.

If the balances of your Indian bank accounts, when totaled together, exceed $10,000, you must also submit the FBAR (Foreign Bank Account Report) which is submitted using FinCen Form 114. That is completely separate from the U.S. tax return and is filed electronically by 30 June 2016. It is an INFORMATION only submission, reporting the name and address of the bank, each account number, and the highest balance of each account in U.S. dollars when converted at the exchange rate on 31 December 2015.

If your bank balances, when added together, exceed $100, 000 on 31 December 2015, or $150,000 at any point in time in 2015, you then must submit Form 8938 with the U.S. tax return under the newer FATCA reporting requirements.

If you need professional help in this process, you can email me at the address in my profile.

[Phanikanth]

Wonderful ! That was quick and helpful. Just a naïve question again, I assume filing jointly as residents for 2015 means filing a 1040A form ? Also, can I use online tools like Turbotax for these ?

By filing jointly, you both file resident for the entire year of 2015.

You will be taxed at Married Filing Joint rates, and you get to claim TWO $4,000 personal exemptions and the JOINT standard deduction of $12,600.

If she paid any tuition in December 2015, she will get to claim an Education Credit for up to $2,500. However, she still retains her F-1 exemption from paying FICA (Social Security and Medicare) taxes if she works in a job related to her studies, either now or in the next four years (2016 through 2019).

To do this, you must wait until 1 June 2016, because you do not meet substantial presence until then. You must also submit a statement, signed by both of you, that you both CHOOSE to be treated as resident aliens for all of 2015.

This makes ALL world-wide income subject to U.S. income taxes, so if you have money in Indian banks, the interest that money is earning must be declared on the U.S. tax return. If you are paying taxes to the Indian government on that interest, you can file Form 1116 to claim the Foreign Tax Credit for that tax payment.

If the balances of your Indian bank accounts, when totaled together, exceed $10,000, you must also submit the FBAR (Foreign Bank Account Report) which is submitted using FinCen Form 114. That is completely separate from the U.S. tax return and is filed electronically by 30 June 2016. It is an INFORMATION only submission, reporting the name and address of the bank, each account number, and the highest balance of each account in U.S. dollars when converted at the exchange rate on 31 December 2015.

If your bank balances, when added together, exceed $100, 000 on 31 December 2015, or $150,000 at any point in time in 2015, you then must submit Form 8938 with the U.S. tax return under the newer FATCA reporting requirements.

If you need professional help in this process, you can email me at the address in my profile.

[AtlantaTaxExpert]

You will file Form 1040 if you are claiming the Foreign Tax Credit using Form 1116.

This return MUST be mailed due to the need to submit the Residency Choice Statement.