Hi,
I came to United states, first time on 28th May 2006 and left US on 2nd Sept 06. Again I came back to US on 8th Oct 06 and stayed thereafter throughout the year, but this time with my family. I have my SSN whereas my family (wife and daughter) don't have SSN.

My query is:

1. Am I a Resident Alien for Tax purpose? (If I calculate my days of presence in United states it comes out to be exactly 183 days, if the day when I arrived in US is considered in days of presence)

2. If I am a Resident Alien for Question#1 then is my wife Resident Alien? My wife came to US very first time on 8th Oct 2006. This was her first visit to US and she stayed with me throughout the year 2006 after that.

3. I have a daughter of 3 years old. Even she came to US very first time along with my wife on 8th Oct 2006. Can she be considered as US Resident Alien?

4. Can I claim child tax credit for my daughter?

5. In case if I can not claim child tax benefit for my daughter do I need to mention here anywhere in form 1040? and do I need to fill W-7 for her?

6. I stayed in two other countries during last US tax year (2006). I stayed in Singapore for 3 months and I stayed in India for 3 months. I was earing salary in both these places and my employer used to deduct tax from my salary. Do I need to mention my foreign income in US tax return if I already paid tax in those two countries? Or do I need to go for foreign tax credit after mentioning my foreign income in 1040?

7. What all the forms I need to fill if all of above cases are valid for me?

Kindly advice and thanks in advance.
Regards,
Vinit4you. . .

AtlantaTaxExpert

Vinit4:

1-3) If you file jointly with your wife, you can both CHOOSE to be treated as resident aliens for all of 2006, and you can claim your daughter as a dependent. However, in doing so, you must declare ALL income, including what you earned in your home country. Otherwise, you file as a dual-status alien, claiming your wife and daughter as dependents, but losing the $10,300 standard deduction you got by filing jointly.

4) If you both file as resident aliens, your daughter will be eligible for the $1,000 Child Tax Credit.

5) Yes, your daughter needs a W-7 completed for her.

6) Yes, you need to claim the income. Yes, you can claim the Foreign Tax Credit (Form 1116).

7) Filing jointly, Form 1040 with Form 1116. Filing dual-status, Form 1040 with Form 1040NR as an attachment.

If you need my professional tax help, contact me at .

vinit4you

Thanks Buddy!
It will really help me to dig down more into problem and search in correct direction. What I understood and decided is in my case I should treat myself as a Resident alien along with my wife and daughter as my dependent. I will file 1040 with 1116 for my foreign tax and suggest the same to my friends who are sailing in the same boat :-)

Just a extension to this, I am not very sure, but how this 1116 works? Is it like I can declare all my foreign income and if income tax been deducted in that foreign country then I can claim ALL foreign tax refund?

AtlantaTaxExpert

You declare your foreign income and claim a credit for the taxes paid.

If you get a refund, the refund is income in the year you get it.