Hi,

I came to US in Jul-2008. Then went back overseas on official tour for about 25 days. So I was in US for about 140 days.

1) What would be my STATUS for tax filing.

I am married and my wife, joined me in Oct-2008 on H4. She doesn't have any income in US or overseas so do she need to file the tax return.

2) What would be my FILING STATUS (such as married filing separate or jointly or head of house etc.)

I have foreign income since I was on job overseas and I paid tax as well.

3) Do I need to report that income, if yes then how and what about taxation and exemptions in this regard.

Any help regarding this would be highly appreciated.

Thanks.

You can file resident tax return as Married Filing Jointly. You will have to file your tax return till you meet the Substantial Presence Test (of 183 days) in 2009.

You will get standard deduction of $10,900 and exemptions for both of you.

You must both declare your worldwide income for 2008. If you have any foreign income, and on that income you paid taxes in the foreign country, then you can claim foreign tax credit.

You will complete forms W7 (application for ITIN) for your spouse and children and attach with your tax return.
Read about H1-B tax filing: Your U.S. Tax Return: The U.S. Visas (http://taxipay.blogspot.com/2008/08/us-visas.html)

Please guide me on this:

How can I become a resident alien since year 2008 has gone and I was remain in US for about 140 days in 2008. I have never been in US in 2006 & 2007.

Do my current stay in 2009 will be counted towards the calculation if yes then there is a problem that filing date is April 15 and if I include all my days in 2009 and one third of days present in 2008 (as the formula states that 1/3 of days last year than the current year) even then I am not in US for 183 days.

Please advise, I am confused.

Thanks.

When you complete SPT in 2009, you can opt for residency starting date from July 2008.