I am Australian citizen working and living in USA on E3 visa continuously since Jan 2006. (343 days in 2006).
Am I considered a resident alien or non-resident alien for tax purposes for the 2006 tax return?
According to the IRS definition I think I am, but my accountant thinks otherwise... The difference is about $6000 in tax.
(Not any expenption status like teach/diplomat etc. I am working as an engineer. I have wife and children - non working - but hoping to claim them as dependents)
Thanks
TIM

Tim:

Get a different accountant, one with experience with taxes for foreign nationals.

You were in resident status from the time you got off the plane. However, since you spent at least ONE day in 2006 as a non-resident alien, you CANNOT file as a resident alien EXCEPT under this provision of the First Year Choice Program:

You and your wife can CHOOSE to be treated as resident aliens for ALL of 2006. This will allow you to claim the double standard deduction of $10,300 PLUS $6,600 for you and your wife's personal exemptio PLUS $3,300 for your child's personal exemption PLUS the $1,000 Child Tax Credit.

If your accountant disagrees, contact me at the email address below and we can discuss my fees for preparing your tax return.

BTW, do either your wife or child have a SSN or an Individual Tax Identification Number (ITIN)? If not, they will have to apply (Form W-7) with the tax return.

I have SSN.
I was told by an IRS phone person that the ITIN’s for all family (6 kids 2 to 12yrs old) were to be sent in with the return. (As you say also)
You certainly seem to be talking about a healthier return than my local accountant.
Tim

Quote:

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Originally Posted by AtlantaTaxExpert

Tim:

Get a different accountant, one with experience with taxes for foreign nationals.

You were in resident status from the time you got off the plane. However, since you spent at least ONE day in 2006 as a non-resident alien, you CANNOT file as a resident alien EXCEPT under this provision of the First Year Choice Program:

You and your wife can CHOOSE to be treated as resident aliens for ALL of 2006. This will allow you to claim the double standard deduction of $10,300 PLUS $6,600 for you and your wife's personal exemptio PLUS $3,300 for your child's personal exemption PLUS the $1,000 Child Tax Credit.

If your accountant disagrees, contact me at the email address below and we can discuss my fees for preparing your tax return.

BTW, do either your wife or child have a SSN or an Individual Tax Identification Number (ITIN)?? If not, they will have to apply (Form W-7) with the tax return.

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Glad to help!

Feel free to contact me via email (see address below) if you need professional help with your return.