Hi,

I (having SSN) entered US first time on H1 Visa with my non working wife (without SSN) on H4 Visa in March 2008. We also had a new born baby (having SSN), born in Aug-2008 in US. Following are my queries:

1) I want to file as Married filling jointly. Can I? What will be my residential status: resident alien or dual, as this is my first year in US?
2) How different is filling as a dual citizen? Do I need to include my Indian income from Jan-March 2008?
3) I also had losses in equity in India this year. Can I get show it somewhere to get benefit? And to what extent? My equity losses in India are far greater then my Indian income from Jan-March 2008.
4) I have not filled income tax last year, as I am new in US. I am not entitled for recovery rebate credit (around $1500). Correct?
5) With this information, can I e-file? If not, to which consultant should I go? Fees? I will also require ITIN for my wife.
6) I am blessed with baby this year in US. Can I get any rebates for my out of pocket medical expenses (around $5k)?

Regards,
Sumit

Sumit:

1 & 2) File jointly with your wife. This will require you both sign a memo which states that you do this voluntarily. It will require you declare your Indian income, but that is partially offset by the Foreign Tax Credit (Form 1116), and the benefits (joint standard deduction of $10,900 and the $1,000 Child Tax credit) will outweigh any additional tax on the Indian income.

3) You can claim capital losses on your Indian stocks IF you actually sold the stocks for a loss. If the stocks just lost value, but you did not sell them, then you have not yet realized any deductible loss. This loss is capped at $3,000 per year, with greater losses carried forward to future years.

4) No, you are NOT entitled to that rebate credit, because your wife has an ITIN and because you were NOT in the U.S. in 2007.

5) No, efiling is NOT possible, because the Form W-7 (to apply for your wife's ITIN) must be submitted with the tax return, and both forms MUST be mailed. If you need professional help, I am available. Email me at [email protected].

6) Possibly. It depends on your overall income.

Thanks Atlanta Tax Expert. Your answer is very helpful and understandsable to me.
I am staying in Los Angeles, CA. My tax filling conditions are as:

1) This is my first time in USA. I am (have SSN) here from March-2008 on H1 with spouse (No SSN/ ITIN) on H4.
2) Baby born in CA (have SSN), in Aug-2008 (Out of pocket expenses around $5K).
3) Indian salary: INR 60K (Jan-08 to Feb-08). US Gross Pay: USD 52K (March-08 to Dec-08). What docs are reqd. supporting Indian income?
4) Losses by selling equities (shares) in India: INR 300K. What docs are reqd. supporting this loss?

How can I file return with your help? What are your charges for my above conditions?
You can also mail me at [email protected]

Regards,
Sumit


Sumit:

1 & 2) File jointly with your wife. This will require you both sign a memo which states that you do this voluntarily. It will require you declare your Indian income, but that is partially offset by the Foreign Tax Credit (Form 1116), and the benefits (joint standard deduction of $10,900 and the $1,000 Child Tax credit) will outweigh any additional tax on the Indian income.

3) You can claim capital losses on your Indian stocks IF you actually sold the stocks for a loss. If the stocks just lost value, but you did not sell them, then you have not yet realized any deductible loss. This loss is capped at $3,000 per year, with greater losses carried forward to future years.

4) No, you are NOT entitled to that rebate credit, because your wife has an ITIN and because you were NOT in the U.S. in 2007.

5) No, efiling is NOT possible, because the Form W-7 (to apply for your wife's ITIN) must be submitted with the tax return, and both forms MUST be mailed. If you need professional help, I am available. Email me at [email protected].

6) Possibly. It depends on your overall income.

Answered via email.