Hi,
I am from India and working here on L1 visa for last 9 months ( Since 27th March 2006). My family, wife and 3 year old daughter, is with me here in USA for last 8 months on L2, dependant visa. My wife does not work here. My family will travel back to India for 3 months vacation from Jan 7, 2007. My family does not have SSN.

1. What paper-work do I need to do before they leave USA towards claiming them as dependants? I need this information very urgently before the family leaves for India.
2. If my family does not come back till 31st Dec, 2007, Will I still be able to claim them as dependants for the next years' return (for year 2007).

I would appreciate your help.

Regards,
-subhash

SubHash:

For your wife and daughter, you will need to prepare and submit Form W-7 (along with a notarized photocopy of their passort) with your tax return. You enter your wife's name under your name and your daughter's name in the DEPENDENT block, leaving the SSN BLANK. Enter the name as listed on their passport. You mail the return to the address on the W-7.

1) The IRS reviews the application, issues the ITIN, inserts each ITIN in the appropriate blank spot, then processes the return. They send the ITINs back to you under separate correspondence. Then (and only then) can you file your state income tax return. You should file as a resident alien under First Year Choice with you and your wife filing jointly. Your wife must sign the return, so you must either expedite the filing process to meet your 7 Jan 06 deadline OR you need to get her power of attorney to sign her name. The only other alternative is to mail the return to your wife in India to have her sign it, then mail it to the IRS address from India.

2) If your family is gone most of the year, you can still file jointly with your wife, but you will NOT be able to claim your child as a dependent. The child must live with you for more than half of the year to be claimed.

If you need help filing your return, I am available. If you have your W-2 or your last pay 2006 stub, I can complete the W-7s, prepare your return return, and FEDEX it to you by Thursday.

Contact me at david.kempe@<hidden> if you are interested.