removeps-groups[at]yahoo.com wrote:
- quote -


Your wife must also pass the substantial presence test to be
treated as a resident alien for tax purposes. But see below.

Your question 2 was not answered.
There is no advantage to change your wife's visa for tax
purposes. In fact, it creates paperwork for you if you want to
file a joint return as she would be exempt from the substantial
presence test and would be a nonresident alien. This would
necessitate you both making an election to treat her as a
resident alien (assuming you are a resident alien) and attaching
it to your tax return.

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Arvind wrote:

- quote -

If you meet the substantial presence test then you can file a regular
1040.

<Quote source="http://www.irs.gov/instructions/i1040nr/
ch01.html#d0e260"
Substantial Presence Test

You are considered a U.S. resident if you meet the substantial
presence test for 2007. You meet this test if you were physically
present in the United States for at least:

1.

31 days during 2007, and
2.

183 days during the period 2007, 2006, and 2005, counting all
the days of physical presence in 2007, but only ⅓ the number of days
of presence in 2006 and only ⅙ the number of days in 2005.

</Quote
If you file a regular 1040, you can claim the hope credit, lifetime
learning credit, or tuition and fees deduction. You can also deduct
student loan interest.

The hope credit is only for the first 2 years of college, and is a
maximum of $1650 per student -- 100% for first $1,100 and 50% of next
$1,100. If your income is too high, the credit is phased out.

The lifetime learning credit is a maximum of $2000 per return -- 20%
of the first $10,000 of expenses. It too gets phased out.

The tuition and fees deduction reduces your income, so it too reduces
your tax. It too gets phased out at high income levels. However, it
is available at higher income levels than the credits, so it is the
only option for higher income taxpayers. The maximum deduction is
$4,000 or $2,000 when your income passes a certain threshold. The tax
savings on $4,000 may be 25% of $4,000 or $1,000 -- maybe more or less
depending on your tax bracket, itemized deductions, etc.

See http://www.irs.gov/instructions/i104...01.html#d0e260

I don't think any of the states recognize these credits. And I think
California I think has a partial deduction for student loan interest.

--
<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

Hi,

I am on a H1 visa and my wife is going to the University on a H4
visa. I have a questions regarding deducting the tuition payments and
would appreciate feedback from teh experts or others who have gone
through the same situation.

1. Can I deduct my tuition expenses? If yes, is there a maximum per
year I can deduct?

2. If my wife switches from being on a H4 (dependent) visa to a F1
(full-time student) visa does anything change (Can I still make the
deductions from question1 if any)? She will not have any income when
on F1 and we will be filing married/jointly.

Thanks,
Arvind

--
<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >