Hi,

I am earning salary from Oct 2007.

My presence is the US is as follows:
Jan 2006: 4 days
2007:
31 days - B1/B2 - First trip
July 22 - Oct 1 : B1/B2 - Second Trip
Oct 1 - Dec 31: H1B - earning salary
Result: I meet the SPT (Substantial presence test)

Sources of Income:
From Jan 1, 2007 - Till Oct 1, 2007 - no salary in the US. Not employed in the US
From Oct 1, 2007 - Dec 31, 2007 - salaried in the US.
Sale of stocks purchased when in India but sold when in the US and proceedings are deposited in a US bank

Citizenship: India

Since I pass the SPT, should I file a resident alien status? Which form? 1040?
If I file under resident alien, do I have to report only US income or income from India as well?

I have filled up my 1040 and ready to file but then I realized if I am filing as resident alien, am I required to report non-US income as well?

I am confused!

Thank you for your time.

Regards,
Kalyan

If you are Single, you become Dual status resident if you meet the SPT. You don't get standard deduction.
You should file form 1040NR or 1040NR-EZ as nonresident, and report only the U.S. income.

Thank YOu. How is the taxation done for dual status citizens? Can you point me to the right publication?

You could choose one of these: to file 1040 with itemized deduction(schedule A) but without standard deduction as partial resident or to file 1040NR(or 1040NR-EZ) as non-resident. Choose the better one.

No, if you are filing dual-status, you have to file BOTH Form 1040NR and 1040.

The Form 1040NR provides mostly demographic data and visa information. The actual taxes are computed on the Form 1040.

Yes, You are right. I just figured out I can file 1040NR instead of the statement which explains I am a dual status alien.
Thanks

Nonresident tax return is easier to do than Dual status tax return.
For 2008, you will file as resident.