I came to US from India on 11th Nov 2007 with my wife( She has SSN) and my Son( Will apply ITIN for him) on L1 Visa. I was working for the same company from India before. I had been in US in 2006 for 331 days( hence a resident) and in 2005 for 58 days. So I still don't qualify for SPT( total no of days is still 52+331/3 +58/6 =172 days). I will be in in US for 6 more months in 2008. So what are my options for filing Tax return for 2007 to get maximum refunds

1) 1040NR ?
2) Dual-Status(?)
3) First Year Choice ( ? Don't qualify as was resident in 2006)

Any Advice is highly appreciated

Form 1040NR unless you file jointly with youe wife and you CHOOSE to be treated as a resident alien.

You can file jointly with your wife and you both CHOSE to be treated as resident aliens. This will allow you to claim the $10,700 joint standard deduction plus two $3,400 personal exemption (for yourself and your wife) plus one $3,400 for your child PLUS the $1,000 Child Tax Credit.

The downside is that:

• you must WAIT to meet the Substantial Test before you can file, which means you must wait until mid-June 2008.

• you must declare ALL 2007 world-wide income. There are two offsets available, by either claiming a Foreign Tax Credit (Form 1116) or a Foreign Income Exclusion (Form 2555).

Even with the downside, this is probably the best way for you to file.

David Kempe