Hi,

I am in MA, USA working for my Client. I basically work in India. I came to US during the end of Sep 2007. I am on L1 visa and have my SSN.

My employer has already withheld the federal income tax, MA state income tax, Medicare tax and social security tax in my monthly salary.

Since I stayed only for around 3 months, I would like to know if I will be eligible for full tax refund?

Also, I am married, but did not bring my family with me during 2007 year. Does this affect anyway on my tax returns?

Kindly let me know how to file the returns and get the refund back. Also need help in knowing - under what category I need to put myself when preparing tax returns and any suggestion for the tax software/site ?

Thanks in advance;
Rams

Rams:

The fact that your employer withheld the taxes indicates that you were paid by a part of your company that has a FIXED base in the U.S. This makes your income subject to all the taxes mentioned.

For 2007, you will file as a non-resident alien, filing Form 1040NR (if you paid moving expenses) or Form 1040NR-EZ, because you have been in the U.S. for less than 183 days.

You CAN file jointly with your spouse, but then you must include the income you earned while in India PLUS add your spouse's income as well. It will also allow you to claim your children as dependents.

There is NO tax software that allows you to file a non-resident alien return on-line; the return must be mailed. You must also apply for ITINs for your wife and children using Form W-7 with this mailed tax return.

This is all rather complex, so you should get professional help. Email me at [email protected] for details on how I can help you professionally.

Thanks for your response. Yes, my employer has office in US which pays me for the duration of my stay. But the fact is I am filing my Income Tax returns in India for this financial year (as I spent only around 100 days in US in 2007).

With that said I have to file as non-resident alien, I am not clear which one to use between 1040NR or -EZ.

Regarding my spouse, she stays in India and was not with me in US during my stay here in US. So should I include her income? Also, why is it required for me to include my Indian income when I am paying taxes in India? I do not have any children and hence I am not eligible for that. So I believe for my status while filing forms in US, I have to be put as single for all practical purposes. Do you agree?

I understand the complexity in identifying the status with which I have to file my returns in US and I believe since I am a non-resident and I stayed in US for less than 100 days in 2007, I am thinking that I would get back the full refund of money. I will contact you anyway for the professional help by mailling you with all the exact details soon.

Thanks very much again.

Rams

From WHERE you file the returns is irrelevent; you still must file.

I will await your email and cover ALL your options in my response to that email.

You might want to make some further inquiry into the social security/Medicare issue and whether that is covered under the totalization agreement. I don't know the answer without doing further research into your country-specific situation.

TTE has a point about the totalization agreement.

The most current IRS Pub 519 does NOT list India as a country with whom the U.S. has such an agreement, but it HAS been more than two years.