I am on L1 visa holder & staying in US from november 1 2007. My wife have L2 visa. We both have SSN Number. I did not file my 2007 tax return. I stay for whole 2007(61 days from November 1 to december 31) & 2008. I want to file 2007 tax return now.

1. Which form I should use :-

1040NR as non-resident.

First Year Choice(1040 with Statement required to make the first-year choice). I think I am eligible for that becuse I was in US more than 31 days in a row and present in the United States for at least 75%(my calulation is 100%) of the number of days beginning with the first day of the 31-day period and ending with the last day of 2007.

I call IRS they say I have to File Dual status.

Any help will be great.

MukatA

1. For 2007, under First Year Choice you can file joint return as residents. You must declare your worldwide income for 2007.

2. You can also claim Moving Expenses (moving from India to the U.S.). Read: Your U.S. Tax Return: Moving Expenses

3. May be IRS said because you never told them that you are married.

AtlantaTaxExpert

Agreed; filing as a resident alien under First Year Choice REQUIRES that you be married.

jaswani

I really apreciate both of you for your answers. I called IRS regarding Global income & did not get the proper answer. They are not sure when making First Year Choice I need to declare my global income.

1. One rep. told use the other income column in Form 1040 to declare Foreign Income.
2. Other rep. told add it to your wages on line 7 of 1040.
3. Other rep. you need to only show your global income from the day you entered in US.(not the whole year).
4. Other rep. told write dual status on FYC statement.
5. there is another confusion where I need to send the form(Living in WA). IRS website state if filling 1040 send it to California. If filing 1040-NR or 1040 NR-EZ send it to Texas.


I really apreciate if you guys help me.

Thanks
Jagdish

MukatA

You should contact AtlantaTaxExpert at for professional help to do your tax return.

AtlantaTaxExpert

I would welcome your business, but Item #2 (put your foreign wages on Line #7) is the correct answer.

And since you are filing jointly under First Year Choice, you need to send the return to the IRS Center at Austin, Texas.

jaswani

Thanks once again for all your help.
1. Should I show the whole year(Janauary 1, 2007 to December 31, 2007) global income or only the period when I was present(November 1 2007 to December 31,2007) in US.

2. What would be the conversion rate as I earned my wages in Indian currency.

Thanks in advance.
Jagdish Aswani.

AtlantaTaxExpert

1) ALL world-wide income for the ENTIRE year of 2007.

2) You can use an average conversion rate for the entire year, or the conversion rate for each day you actually got paid. You just need to be consistent on how you do it.