During 2017, I was a non-resident alien, having US and foreign income. My wife (J2 with EAD) worked in US, and has no foreign income. Should we fill joint or separate?

[LinaJ2018]

Was 2017 first year you entered US with a J-1 visa ?

[rodriguetti]

I entered US in 2016 with a J-1 visa, having US and foreign income during 2016 and 2017. During 2016 my wife did not have US income so she was considered as well non-resident allien and we filled taxes separately. SInce se has worked in US during 2017, I understand she is considered now as resident alien because of her J2 status; and we have the possibility of filling together (being considered both of us as resident aliens, therefore including worldwide income; but I understand with higher deductions) or filling separately (my wife as resident alien, and me as non-resident alien since this is my second, and last, year I can be considered as non-resident alien for tax purposes)

[LinaJ2018 · Accepted solution]

As a J visa holder, you both are considered as 'exempt' by IRS for two years.  It means they don't count your days when you live in the US.  You are treated as a nonresident for two years from the year you first entered the US.  Starting from 3rd year, if you reside in the US for at least 183 days, you may be considered as a resident for tax purposes if meet the Substantial Presence Test. 

In your situation, both you and your spouse are considered as nonresidents for the year of 2016 and 2017.  You are required to file a Form 1040NR.  You will be filing Married Filing Separately as only residents are allowed to file Married Filing Jointly.  Starting from 2018, if one of you resides in the US for at least 183 days, you will be considered as a US resident for tax purposes and have the possibility filing together.  Nonresident to resident

Please note that TurboTax program does not support the Form 1040 NR.  You are advised to visit Sprintax to complete your 2017 tax filing.

Please see attached article and link :

Exempt Individuals

Hope this helps! 

[rodriguetti]

Thanks a lot for your help. It was my initial thought that my spouse was considered as resident alien as J2 visa workers are not exempt from FICA taxes. But what you are explaining makes totally sense. I submitted my taxes last year using Springtax and everything worked well, so I will definitely use it again this year. Thanks!

[LinaJ2018]

You are welcome !