Hi,

Thanks in advance for your time.

I moved to Chicago, IL from India on October 2, 2007 on an L1A visa. My wife moved on November 25, 2007 on an L2. While both of us have SSNs, neither of us have a state issued driver's license. Both of us expect to be in Chicago for the whole of 2008 with our respective visa status.

While my wife hasn't worked until now, her employment authorization just came through and we expect her to be earning as well for part of 2008.

What in your opinion is the best way for us to file 2007 state taxes? Are we part-year residents or non-residents? Do let me know if you require any further information to assist me with this query.

Thanks

Choice 1: File nonresident tax return. You will only get exemption of $3,400. You can deduct moving expenses on form 3903 and itemized deductions (included state taxes paid). Normally you should choose this only when all your deductions are equal to or more than your total income.

Choice 2: File joint return as residents. But you can file the return only after May 15, 2008.

MukatA - thanks for your prompt response.

I actually filed my Federal returns. My state returns got rejected because TurboTax (the software I used to e-file) automatically selected 'part year resident' as our filing status. The state return has been subsequently rejected.

Should I simply wait for May 15, 2008 and refile with corrected residence status, or do I need to do anything from now till then?

Appreciate your assistance.


Choice 1: File nonresident tax return. You will only get exemption of $3,400. You can deduct moving expenses on form 3903 and itemized deductions (included state taxes paid). Normally you should choose this only when all your deductions are equal to or more than your total income.

Choice 2: File joint return as residents. But you can file the return only after May 15, 2008.

For IL you are nonresident or part year resident. Turbo tax will not do federal nonresident tax return.