I was on F1 visa from Aug 2011 till Sep 30th,2014 and changed to H1b from Oct 1st, 2014. I got married in 2014. My wife is in USA on F2 visa from Feb till Sep, 2014 and changed to H4 from Oct 1st, 2014. Since I don't pass the Substantial Presence Test for 2014, I am a non-resident alien for 2014 tax purposes. Am I eligible to make a first year choice and file dual tax returns for 2014. Do I have any tax advantage in doing so? I can claim a dependent in that case? I also need to apply for ITIN for my wife.

I also have a 1099-B form. Do I need to put the capital losses in line 14 in 1040NR (after filling schedule D and 8949) or use the schedule NEC, in which case I can't claim any losses.[/FONT]

It is likely better for you to file a JOINT tax return under First Year Choice, because that allows you to claim the $12,400 joint standard deduction. You WILL have to wait until 1 June 2014 to file.

Does your wife have an ITIN or SSN?

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Originally Posted by AtlantaTaxExpert

It is likely better for you to file a JOINT tax return under First Year Choice, because that allows you to claim the $12,400 joint standard deduction. You WILL have to wait until 1 June 2014 to file.

Does your wife have an ITIN or SSN?

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Thanks ATE. I have a couple of follow up questions. She doesn't have a SSN or ITIN. I need to apply for that. Without an ITIN is it possible to apply for an extension?

Also if I file Joint Resident returns for 2014, should I pay the FICA and medicare taxes for the 9 month non-resident period?

No to the FICA question. Even if you choose to be treated as resident aliens, you are NOT liable for the FICA taxes NOT withheld during your F-1 visa status.

Yes, you can submit Form 4868 and simply print "ITIN Applied For" where her SSN would go, then mail it in.

The easiest way to apply for the ITIN is in person at a local Tax Assistance Center. See link below:

Taxpayer Assistance Center Locations Where In-Person Document Review is Provided

That way, her passport never leaves your possession. You would go to the TAC after 1 June 2015.

Thanks ATE. I guess one final question -So I should file 1040 Resident and choose taxes based on married filing jointly and attach statements from me and my wife that we are making first year choice and quailify for joint filing as we both are treated as residents.

Yes, that IS what you need to do.

If you want professional help with this, please email me at the email address in my profile.