Hi,

I have some questions about a dual-status return - left the US permanently in 2006.

1. After I became a non-resident I had no income from US sources or associated with the US. Do I report on the 1040NR return the same income from 1040 statement, i.e. my income as a resident, or leave it blank (reflecting the fact that I had no US-related income as a nonresident)? (The example in guide 519 doesn't help me since there the individual has distinct US-related incomes to report.)

2. When I fill out 1040, can I claim exemptions for my spouse (non-US citizen) and two sons (US citizens)? I understand that for the part of the year I was a resident, I could do that. But form 1040NR doesn't allow me to claim my spouse (I check "other married nonresident alien" on "filing status and exemptions for individuals"). Do I claim the four exemptions (including mine) in 1040NR and only three (excluding my wife) on 1040NR, or the three exemptions in both?

3. When I fill out 1040 as a "dual-status statement", do I need to enter the information in the "filling status" and "exemptions" boxes, or I just include that information in 1040NR and leave those fields in 1040 blank?

Thanks in advance for your help!

1) If you had NO U.S.-sourced income during your non-reisdnet alien status, then leave the financial portion of the retun BLANK. Fill in the demographics, however, plus Page #5.

2) You must file Married Filing Separately. Claim your spouse as a dependent as well as your children.