I came to US on October 11 2008 on L1-Visa with my Spouse (L2) & Kid (L2)
My spouse is not working & does not have EAD/ITIN/SSN (Not even applied)
I was not here in 2006 or 2007 (So do not pass the Substantial Presence Test)

I am filling my tax returns & these are my questions

From what I understand my status is "Non resident Alien"

1) Should I file as Married or Single. If Married, should it be separate or Jointly.
NOTE: My Wife does not have any income.

2) Can I claim for exemption for my wife or Kid? They do not have SSN, but I am planning to apply for ITIN.

Thanks,
Satheesh

Choice 1: You can file nonresident tax return. You will only get your personal exemption of $3,500 and itemized deductions. You can also claim moving expenses.

Choice 2: You can file resident tax return as Married Filing Jointly. You will have to wait for 5 months 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 and the child. 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.
Credit.
You will complete forms W7 (application for ITIN) for your spouse and children and attach with your tax return. You can also deduct moving expenses. Use form 3903.
Read about L1 tax filing: Your U.S. Tax Return: The U.S. Visas (http://taxipay.blogspot.com/2008/08/us-visas.html)