Hi,
I am in US on L1 visa since July 28, 2007. I have declared on my W4 form that I am married and have one kid. They are dependent on me. As of now they are residing in India and will join me in May 2008. I have got 3 points because of my declaration and my taxes are deducted at source based on the above details. Can I file my returns under "Married filing jointly" option? As of Dec 31 2007, I would have completed a total of 157 days of being physically present in the United States. Please do let me know.

Thanks in advance,
Ajay.

Ajay.. first off, you cannot claim anyone who is not physically resident in the united states. Secondly, these people you are claiming have no social security numbers and hence go against the tax laws to claim them. If audited, you may have to pay back for this practice is considered a tax fraud. If they do have SSNs, you can do anything you want, but legally. Consult an accountant.

Hi,
I am in US on L1 visa since July 28, 2007. I have declared on my W4 form that I am married and have one kid. They are dependent on me. As of now they are residing in India and will join me in May 2008. I have got 3 points because of my declaration and my taxes are deducted at source based on the above details. Can I file my returns under "Married filing jointly" option? As of Dec 31 2007, I would have completed a total of 157 days of being physically present in the United States. Please do let me know.

Thanks in advance,
Ajay.

Choice 1: File nonresident tax return. You will only get your personal exemption and itemized deduction. Ypu can deduct moving expenses using Form 3903.
Read: Your U.S. Tax Return: U.S. Tax Filing Requirements for Non-Residents (http://taxipay.blogspot.com/2008/03/us-tax-filing-requirements-for-non.html)
Read: Your U.S. Tax Return: Moving Expenses (http://taxipay.blogspot.com/2008/02/moving-expenses.html)

Choice 2: After you complete Substantial Presence Test in 2008 (which you have already completed), you can file resident tax return as Married Filing Jointly.
You will get standard deduction of $10,700 and exemptions for both of you and the kids.

You must both declare your worldwide income for 2007. If you have any foreign income, and on that income you paid taxes in the foreign country, then you can claim foreign tax credit.
Read: Your U.S. Tax Return: U.S. Citizen or Resident with Foreign Income (http://taxipay.blogspot.com/2008/03/us-citizen-or-resident-with-foreign.html)

You will complete forms W7 (application for ITIN) for your spouse and children and attach with your tax return. You can also deduct moving expenses. Use form 3903.

MukatA's advice is accurate EXCEPT for the child. While we have successfully filed returns claiming dependency for children NOT located in the U.S. recent developments indicate that the IRS is rejecting such claims in 2007 tax returns.

Hence, we are now working on the assumption that, to claim a child as a dependent, the child must spend at least SOME time being physically located in the U.S. For this reason, you cannot claim your child on your 2007 tax return.

Filing jointly with your spouse is a different matter entirely. Your spouse is NOT your dependent; he/she is your co-filer. Hence, his/her physical location is irrelevent; he/she could be on Mars for all the IRS cares. You can and should apply for an ITIN for him/her using Form W-7 and file jointly with him/her using Form 1040, 1040A or 1040EZ.

MukatA's advice is accurate EXCEPT for the child. While we have successfully filed returns claiming dependency for children NOT located in the U.S., recent developments indicate that the IRS is rejecting such claims in 2007 tax returns.

Hence, we are now working on the assumption that, to claim a child as a dependent, the child must spend at least SOME time being physically located in the U.S. For this reason, you cannot claim your child on your 2007 tax return.

Filing jointly with your spouse is a different matter entirely. Your spouse is NOT your dependent; he/she is your co-filer. Hence, his/her physical location is irrelevent; he/she could be on Mars for all the IRS cares. You can and should apply for an ITIN for him/her using Form W-7 and file jointly with him/her using Form 1040, 1040A or 1040EZ.


I have completed 156 days in calender year 2007. Can I file returns using Form 1040EZ or Should I use 1040EZ-NR?

If you file jointly, Form 1040EZ.

If you file by yourself, Form 1040NR-EZ.

If you file jointly, Form 1040EZ.

If you file by yourself, Form 1040NR-EZ.

For filing ITIN, Is it enough if I get the passport copies of my wife and son notarized?

Yes, provided the notary is based in the U.S. or Canada or in Europe.

The IRS will NOT accept notarized documents from the Middle East.

Not sure about Africa or the Far East.

Yes, provided the notary is based in the U.S. or Canada or in Europe.

The IRS will NOT accept notarized documents from the Middle East.

Not sure about Africa or the Far East.

Thanks for the reply.

I have got the visa page and the front page of the passport copy notarized by a notary from New jersey. Should all the pages be notarized? Please do let me know.

You can file W7 only when you the resident tax return jointly. Yes, the attachments are enough. Also in my previous answer, read choice 2. You will also attach a statement signed by both of you that you qualify to file as resident and both of you choose to file as residents.