Hi,

I came to USA on L1 Blanket Visa on 30th August 2008, along with my wife and son. I have social security number. My wife do not work and do not have social security number.
She has L2 Visa.

Now I am applying for ITIN number for my wife and son. I want to know which status we should choose. Whether I am a Residient alien OR non resident alien?

Let me know

Thanks

Pandu

Pandu:

You can file jointly with your wife and you both CHOSE to be treated as resident aliens. This will allow you to claim the $10,900 joint standard deduction plus two $3,500 personal exemption (for yourself and your wife) plus one $3,500 for your child PLUS the $1,000 Child Tax Credit.

The downside is that:

• you must WAIT to meet the Substantial Test before you can file, which means you must wait until about 22 May 2009.
• you must declare ALL 2008 world-wide income, but you can at least partially offset any double taxation by claiming a Foreign Tax Credit (Form 1116).

Even with the downside, this is probably the best way for you to file.

You will need to submit Forms W-7 with a notarized photocopy of their passports WITH the joint tax return.

If you need professional help doing this, contact me at [email protected].

File W7 (ITIN application) with your tax return unless you have other reason to file it separately.

To learn more about ITINs, see Taxpayer Identification Numbers (TIN) (http://www.irs.gov/businesses/small/international/article/0,,id=96696,00.html#itin)