H4 dependant??

[car_01]

Hii,

I am currently on H1 visa. I was on F1 from Aug 2006 to Sep 2008 and H1 from Oct 2009 till now. I got married in Feb 2009. My wife was on F1 from Aug 2006 to July 2009 and currently she is on H4 visa.

My wife has a SSN and she has a income of $1200 for 2009.

Can i claim her as a dependant for 2009? From what i have read on your website I think I am Resident for US tax purposes. So if I can claim her as dependant. what form should i fill out. From 2006 till 2008 we both have filed 1040NREZ.

Thanks in Advance!!!

[Atlanta Tax Guru]

You will NOT claim your wife as a dependent.

You can file jointly with your wife and you both CHOOSE to be treated as resident aliens. This will allow you to claim the $11,400 joint standard deduction plus two $3,650 personal exemption (for yourself and your wife).

The downside is that:
• You must wait until 1 June 2010 to meet the Substantial Presence Test before you can file for Tax Year 2009.
• you must declare ALL 2009 world-wide income (wife’s home country income, if applicable). There is an offset available by either claiming the Foreign Tax Credit (Form 1116) or to claim the Foreign Earned Income Exclusion (Form 2555).

Even with the downside, this is probably the best way for you to file.