thanx NYbanker

i will post the gentleman's reply as soon as i get it

You should have a 401K plan with your employer and your wife should also do the same. This will lower your US tax bill. If your wife's employer does not offer a 401K you can always do a IRA plan with your bank. Moreover, you should write off job seeking expenses for yourself and your wife if they were incurred in the last tax year and your wife should also be able to write off books and training expenses during her first tax year. That should ensure you get back the maximum tax refund. You may also consider buying a home, small to start with, but be careful where you buy as home prices are set to decline in the US. Over and above this, you should invest up to 10% or more of your combined income in a blue chip or index tracker fund with low fees.