Hi,

I have lived in US from 2006 Nov to 2009 May on H1-B and later returned to India. I have filed the 2006,2007 and 2008 tax returns usng 1040 form and standard deduction.

Now I am not sure how to file 2009 tax returns as I have lived there for < 180 days. My employer has already withheld the federal and state taxes. Any expert help on this is really helpful. Thank you.

Regards,
Nasha.

For 2009 file Dual Status Tax return, you are nonresident after May 2009.

Thanks for the reply, but could you please explain as I am not sure what the dual status tax return is and ho to do it.

Nasha:

You have a choice:

1) you can file a dual-status return, which requires you pay taxs ONLY on your U.S.-soruced income.

OR

2) Use the default termination date of 31 December 2009 and file as a resident alien for 2009. That will require you declare ALL world-wide income earned in 2009, to include your India-sourced income.

The dual-status return is NOT a return for amateurs; get professional help!

You can probably file the resident return yourself, but you will need to attach Form 1116 if you want to claim the Foreign Tax Credit for Indian taxes paid.

In either case, you need to mail a Residency Termination Statement to the IRS facility at Austin, Texas. The contents of this statement is detailed in IRS Pub 519.

If you want professional help, contact me at [email protected].