Hi,

I am H1B visa holder entered USA on 11th Jan 2007 with my wife and daughter (H4).
I live in Arkansas State.

I need your help in filing my tax return

1. What is Resident Alien and Non resident Alien which category I belong to

2. Do I need file jointly with my wife or separately.

3. I got to know that I need to get ITIN for my wife and daughter. So in this case can I file my returns with wife applying for simultaneously for ITIN?

4. How do I need to file my State income tax returns?

Kindly help me

Thanks, Sreekara

Hi,

Following are my inputs based on past returns...

1) You are Resident alien (for tax purposes) since you have stayed in US for more than 183 days in 2007

2) File jointly to get max exemptions including child tax credit,etc

3) Have to file simultaneously.You need to send the ITIN forms (W7) attached to the IT return form to the address mentioned in the W7 form.The IRS will process the ITIN and put it on your IT returns and process it.You will then get the ITIN number in a letter in 3 to 6 weeks time.

4) Ideally you file same time as Federal returns.But since you don't have ITIN for dependents you will have to wait till you get the ITIN numbers before sending the state tax forms.

Since I assume this is your first time, get your tax forms prepared by AtlantaTaxExpert who is a regular on this forum and an expert on this.I am not advertising for him but simply advising based on exp, as anyway you won't be able to efile (HRBlock,TurboTax,etc) as you don't have ITINs for your dependents yet.

Hope this helps...

Disclaimer - Consult an expert in any case...

Supera:

Thank you for the recommendation.

Your posting is accurate except that Sreekara has the option of filing as a dual-status alien and claiming his wife and child as dependents.

However, filing jointly will almost certainly result in greater tax savings because of the Child Tax Credit and his ability to claim a DOUBLE standard deduction of $10,700, which is NOT AVAILABLE if he files a dual-status return.

With 10 days or less in a foreign country in 2007, it is doubtful that dual status is an option.

MukatA:

If he was single, dual-status would be his ONLY option.

Remember this rule: If a foreign national is considered a non-resident alien for EVEN ONE DAY and he does not meet the exception criteria to be treated as a resident alien under First Year Choice (which requires that he/she be married), then that foreign national CANNOT file as a resident alien.