Hi,

I am an Indian Citizen entered US(Chicago.IL) for the first time on 6th June 2007 with H1-B Visa.
And my spouse and daughter entered US for the first time on Aug2007 with H4 Visa.
I have not changed my visa status to any other visa

Please find the details of my stay in US below:
Number of days I lived in US in the year 2007 - 209 days
Number of days I lived in US in the year 2008 - 49Days

I have the following queries :

1. Which form I have to use to file tax return for 2007 and what is my status?
2. Which option do I have to select on form W-7 for "Reason Applied"?
3. Also my W-2 form shows Social Security tax and medicare tax withheld. Do I have to list them as well in the tax return form?

Please help me.
Thanks in Advance.

1) You can file jointly with your wife and you BOTH choose to be treated as resident aliens for all of 2007. This is probably the best choice tax-wise, as it allow you to claim THREE personal exemptions of $3,400 each PLUS a double standard deduction of $10,700 PLUS the $1,000 Child Tax Credit.

2) Choose Option E for your wife and Option F for your child on the W-7.

3) No, these are FLAT taxes which are NOT addressed on the annual tax return.