Hello,

My situation is the following:

We came in the USA (California) in September 2007 – me, my husband and 3 children (age 5, 8, 12 years). My husband is on H1 visa, me and the children are on H4 visa. We haven’t been in the USA before so we do not meet the substantial presence test. My husband has SSN. I and the children do not have ITIN.
I would like to ask:
1. Can we apply for filing extension now and file after we meet the residents requirements
2. Can we use the first year choice option to file jointly as residents and include our children as dependents
3. When should we apply for ITINs for me and the children
4. What is the procedure for getting ITINs – the local IRS office refused to accept our application
5. How should we file for the California taxes

Your help is greatly appreciated. Thank you!

1) Yes, if you file jointly and you BOTH choose to be treated as resident aliens. The EARLIEST you can file is in late May 2008.

2) Yes.

3 & 4) Complete Forms W-7 for yourself and each child, then make a photocopy of each person's passport (only pages with information on it). Get those photocopies notarized or certified as true copies by either the local IRS office or at the local U.S. Post Office, as banks in California will NOT notarize passport photocopes due to a unqie (and strange) California law. Staple each notarized/certified passport photocopy to the appropriate W-7, then paper clip all if these documents to your FEDERAL tax return. Mail everything to the address listed in the W-7 instructions.

5) You can file your California tax return as part-year residents RIGHT AWAY. The Franchise Tax Board in California WILL acept the return even though your have no ITIN; they just ask that you notify them of your ITIN when you get it from the IRS.

If this is all abit much for you, contact me at the email address below for professional tax help!

abigail1212:
If you decide to file as Married Filing Jointly as First Year Choice, you must attach a statement signed by both of you to your return stating that you qualify to file as residents as First Year Choice and that you EXPLICITLY CHOOSE to file this way.

It may be better for you to contact AtlantaTaxExpert to do your tax return.