H1B worker & (non-resident?) J1 spouse - Can we file jointly?

[b_aldream]

Dear all,

As a married couple, we're having troubles figuring out if we will be able to file jointly or not for 2020 (in order to enter the proper tax withholding status right now). Our situation is as follows:

• Him: H1-B visa holder, working in the US since January 2020.
• Her: will arrive in the US in April 2020 with a J1 visa for a 6-month-long unpaid internship (i.e. till end of September 2020), then will switch to H4. She will have no income anywhere the whole year.

Our understanding is that as a student with a J1 visa, she will be considered as an "exempt individual" and the days she will spend in the US with a J1 visa won't count for the substantial presence test. (https://www.irs.gov/individuals/international-taxpayers/substantial-presence-test). Is that right?

If that period won't count for that test, then she will not be considered as a resident in 2020; and, therefore, we won't be able to file our tax return jointly. Is that still correct?

However, we may still be able to get some money back from his taxes (as much money as if we filed jointly?) by claiming her as a dependent when filing the tax return at the end of the year. Still correct?

Are we missing anything?
Thank you in advance for the help!

[KurtL1 · Accepted solution]

You will be considered a resident alien for tax purposes when you file your 2020 return.

Per IRS Nonresident Alien Spouse if, at the end of your tax year, you are married and one spouse is a U.S. citizen or resident alien and the other is a nonresident alien, you can choose to treat the nonresident as a U.S. resident. 

You need to attach a statement, signed by both spouses, to your joint return for the first tax year for which the choice applies. It should contain the following information:

1. A declaration that one spouse was a nonresident alien and the other spouse a U.S. citizen or resident alien on the last day of the tax year, and that you choose to be treated as U.S. residents for the entire tax year
2. The name, address, and identification number of each spouse. (If one spouse died, include the name and address of the person making the choice for the deceased spouse.)

If you file this statement with your return you can mail in your Form 1040 and file with the filing status as Married Filing Jointly.