As I will be filing US taxes for the first time, I would kindly have a couple of questions and would appreciate your help. I became permanent resident on June 29, 07. Since coming to the US I have had no income, apart from dividend income on stock holdings (based in the US) and interest on money markets deposits (in the US and my European home country). In terms of US taxes I plan to file jointly with my husband (US citizen). Is far as I researched, I am US "tax resident" from the date that I became a US permanent resident. Is this correct? If so, I assume that I do not need to declare for the US tax purposes my income prior to June 29, 07. Correct? For the 2007 US taxes I will hence only declare my dividend and tax income for period June 29, 07-December 31, 07. Correct? For the interest on money market deposits I shall be able to be guided by a relevant double-taxation treaty between US and my European home country. Correct?

Thanks a lot - really, O.

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Originally Posted by Ollanna

As I will be filing US taxes for the first time, I would kindly have a couple of questions and would appreciate your help. I became permanent resident on June 29, 07. Since coming to the US I have had no income, apart from dividend income on stock holdings (based in the US) and interest on money markets deposits (in the US and my European home country). In terms of US taxes I plan to file jointly with my husband (US citizen). Is far as I researched, I am US "tax resident" from the date that I became a US permanent resident. Is this correct? If so, I assume that I do not need to declare for the US tax purposes my income prior to June 29, 07. Correct? For the 2007 US taxes I will hence only declare my dividend and tax income for period June 29, 07-December 31, 07. Correct? For the interest on money market deposits I shall be able to be guided by a relevant double-taxation treaty between US and my European home country. Correct?

Thanks a lot - really, O.

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Ok - just to add to my question as now I am getting more deeply into this "US tax area". Do I actually have to file separately (rather than jointly with my husband) as a dual-status alien? In 2007. Prior to becoming a permanent resident at the end of June I have not been at all in the US and prior to obtaining the Green Card I only had a tourist visa.

If you want to file jointly with your husband, then you must include your worldwide income for the entire year on your U.S. tax return. If you file separately and you just became a resident in 2007, then you can file separately as a dual status alien. You may want to perform calculations both ways to see which way you owe less tax. If you paid foreign taxes on the income prior to becoming U.S. resident and you elect to file jointly, then you would be able to claim the foreign tax credit to reduce the U.S. tax on that income.

Thank you. O.