Hi, here are the facts:
I entered into the US in July 2007 and I have f-1 visa. I fail the substantial presence test for 8 missing days. It seems that I have to file f1040NR. I have earned a little over $1500. In 2007 I have made childcare expenses over $5000. One of my children is a US citizen and the other is not.

Here are my questions:
1- I believe with the 31st day of my presence in 2008 I can go with the first year choice. Is this of any use to make first year choice?
2- If so, will I be treated as a resident alien and file 1040?
3- If so will I be able to show my childcare expenses and be entitled to a higher refund?
4- Or considering my income during 2007, should I directly file f1040NR and do not think about first year choice?

Many thanks for the assistance.

If your ONLY income is less than $1,500, file Form 1040NR-EZ and be done with it.

You will get ALL of your withheld income taxes back because your $3,400 personel exemption BY ITSELF will exceed your taxable income.

The Child Care credit is NOT a refundable credit.

You CAN file Form 8901 and claim the Child Tax Credit with Form 1040NR and perhaps get a somewhat higher refund.