I would like to make the election of first year choice, but not sure if I can benefit from it.

I arrived US on 11/7/11 from Japan. My spouse and kids didn't join me until 3/1/12.

Can I elect first year choice and claim my spouse and kids' exemption even they were not in US?

I know that if I file MFJ, I have to include my world wide income for the entire 2011. However, does it mean that I can exclude my spouse's and myself's income from Japan if I file MFS?

Your help would be really appreciated!

First Year Choice is NOT always the best course of action, espcially since you CANNOT claim your children (since they spent NO time in the U.S. in 2011).

You CAN file jointly with your wife; her physical location is irrelevant.

If you file by yourself as a non-resident alien, you claim ONLY the income earned and received since you arrived on 7 Novemberr 2011 to 31 December 2011. If you get paid monthly and there is a delay in receiving the paycheck, you MAY only have the November pay to report.

You need to model the return BOTH ways to determine the best course of action.

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Hi Atlanta Tax Expert,

Thanks so much for your help. So can I claim my spouse's exemption by making First Year Choice election and MFS status even she was not in US in 2011. That way, I would only be taxed from the date I arrived US.

No, you MUST file jointly to use First Year Choice with your wife being part of the return, thus requirinbg all world-wide income be declared (for both you and her).

If you do First Year Choice to file dual-status, then you CANNOT claim your wife as a dependent, because THAT requires she be physically present in the United States, just like the children.