[gnaren918]

Hi,

I am on H1-B visa from India and been in the US for

90 days in 2004
17 days in 2005 and
130 days in 2006.
51 days in 2007 (and still continue to be here ):)

I have a couple of questions.

1. Can I file as a resident alien as I have completed 183 days including the number
Of days of stay in 2007?or should I file as Non-Resident Alien?
2. My wife joined me on Dec 1, 2006. She is on a H-4 visa. Can I file as married filing jointly?
3. Also, can I claim foreign tax credit for salary taxed in India?

Thanks for your help.

-Naren.

[AtlantaTaxExpert]

Naren:

You can file jointly with your wife and BOTH choose to be treated as resident aliens if you wait until 20 May 2007 to file (to meet the Substantial Presence Test).

If you do this, ALL of your world-wide income in 2006 becomes subject to U.S. taxes.

Yes, you can claim the Foreign Tax Credit (Form 1116) for the income taxes you have paid on your India-based salary.