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-   -   L1 and L2 resident or non resident alien (https://www.askmehelpdesk.com/showthread.php?t=195632)

  • Mar 17, 2008, 03:07 PM
    kaschool
    L1 and L2 resident or non resident alien
    Hi Tax Experts

    I'm from the UK and recently relocated with Intel to the USA. I arrived in the USA on Sept 13th 2007 with my wife on L1 and L2 visas. As of today that means we have been here for 187 days. I have also been here on various business trips for the previous 3 years.

    My question is should I file my tax return as a resident alien or non resident alien? My guess is that I might be able to file as either or possibly dual - can you confirm?

    My Wife was not working here in the USA through 2007 as she was waiting on her EAD work authorization. She started working in January 2008.

    Can you make a recommendation on how I should file my taxes (will use H&RBlock) to yield the best tax result?

    Many thanks

    Richard
  • Mar 17, 2008, 03:27 PM
    atny286
    Quote:
    Originally Posted by kaschool
    Hi Tax Experts

    I'm from the UK and recently relocated with Intel to the USA. I arrived in the USA on Sept 13th 2007 with my wife on L1 and L2 visas. As of today that means we have been here for 187 days. I have also been here on various business trips for the previous 3 years.

    My question is should I file my tax return as a resident alien or non resident alien? My guess is that I might be able to file as either or possibly dual - can you confirm?

    My Wife was not working here in the USA through 2007 as she was waiting on her EAD work authorization. She started working in january 2008.

    Can you make a recommendation on how I should file my taxes (will use H&RBlock) to yield the best tax result?

    Many thanks

    Richard
    Hi Kaschool,

    I am not a tax expert, I am a New resident also and have L1 and L2 for my wife.
    I suggest to try out the different statusses in excel and see what is best for you.

    In my case my wife had no income in 2007 in the US and my worldwide income is more or less the same as my US income so I will go for the dual-status:

    Nonresident until the first day of the 31-day period. If you haven't been abroad, this would be 01/01/2007 till 09/12/2007 for you as non-resident (only US income is taxable = nil) and for 09/13/2007 till 12/31/2007 as resident (worldwide income is taxable).

    plus for dual-status: you can claim your wife's personal exemptions ad 3,400USD
    min for dual-status: worldwide income is taxable as of resident status

    So in my case: no income for my wife and no other than US income after I became a resident, a dual-status would be best.

    I do have a question to the tax experts:
    1. I arrived in the US on 09/14/2007
    2. I have been abroad for work (business trips)
    3. I have been abroad for vacation
    4. My first 31-day period starts 11/27/2007 (I become a resident alien)

    All my days abroad I did when having a nonresident alien status (before 11/27/2007).
    a. Is my income I earned from the US employer taxable for the days I worked outside the US? If not, where can I find literature about this topic?
    b. how about the vacation days I spent abroad?

    Thank you!
  • Mar 20, 2008, 09:59 PM
    nikita1234
    I came in US on 22nd Sept 2007 on L1 visa. So let me know that I have to file the ITR as resident allien, non-resident allien, dual resident allien.

    Whether I will get standard deduction while filing income tax return.

    And my wife came to US on 3rd Feb 2008. Whether I can file tax jointly.
  • Mar 20, 2008, 11:51 PM
    MukatA
    Quote:
    Originally Posted by kaschool
    Hi Tax Experts

    I'm from the UK and recently relocated with Intel to the USA. I arrived in the USA on Sept 13th 2007 with my wife on L1 and L2 visas. As of today that means we have been here for 187 days. I have also been here on various business trips for the previous 3 years.

    My question is should I file my tax return as a resident alien or non resident alien? My guess is that I might be able to file as either or possibly dual - can you confirm?

    My Wife was not working here in the USA through 2007 as she was waiting on her EAD work authorization. She started working in january 2008.

    Can you make a recommendation on how I should file my taxes (will use H&RBlock) to yield the best tax result?

    Many thanks
    Richard
    Choice 1: File as nonresident. You will only get your exemption of $3,400. You can deduct moving expenses.

    Choice 2: Wait till you complete SPT in 2008. You will count only 1/3 of the days in 2007.
    Then file as resident Married Filing Jointly. It does not matter if your spouse is working or not. Attach her W7 with your tax return.
  • Apr 7, 2008, 11:21 AM
    kaschool
    Quote:
    Originally Posted by MukatA
    Choice 1: File as nonresident. You will only get your exemption of $3,400. You can deduct moving expenses.

    Choice 2: Wait till you complete SPT in 2008. You will count only 1/3 of the days in 2007.
    Then file as resident Married Filing Jointly. It does not matter if your spouse is working or not. Attach her W7 with your tax return.
    Hi MukatA

    What is SPT?

    My moving expenses were very minimal, so would you advise choice 2?

    Thanks

    Richard
  • Apr 7, 2008, 11:28 AM
    MOHAMDK0
    Quote:
    Originally Posted by kaschool
    Hi Tax Experts

    I'm from the UK and recently relocated with Intel to the USA. I arrived in the USA on Sept 13th 2007 with my wife on L1 and L2 visas. As of today that means we have been here for 187 days. I have also been here on various business trips for the previous 3 years.

    My question is should I file my tax return as a resident alien or non resident alien? My guess is that I might be able to file as either or possibly dual - can you confirm?

    My Wife was not working here in the USA through 2007 as she was waiting on her EAD work authorization. She started working in january 2008.

    Can you make a recommendation on how I should file my taxes (will use H&RBlock) to yield the best tax result?

    Many thanks

    Richard
    Substantial Presence Test
  • Apr 7, 2008, 11:39 AM
    atny286
    Quote:
    Originally Posted by MukatA
    Choice 1: File as nonresident. You will only get your exemption of $3,400. You can deduct moving expenses.

    Choice 2: Wait till you complete SPT in 2008. You will count only 1/3 of the days in 2007.
    Then file as resident Married Filing Jointly. It does not matter if your spouse is working or not. Attach her W7 with your tax return.
    SPT = Subtantial Presence Test. You'll need to be 183 days present in the US in 2008.
    The days in 2007 count for 1/3 and the days in 2006 for 1/6. So if you enter 2007 for the first-time in the US and you were about 100 days in the US; 1/3 of 100 counts towards the 183 days (33). So, you'll need another 150 days in 2008 (probably the end of May 2008). After this date you can file as a dual-status alien = file for extension before April 15, 2008 and file after the 183 days in June 2008 (before October 15, 2008).

    MukatA: I was told that dual-status can only file as Married filing SEPARATELY and claim your spouse as dependent (and get the 3,400 exemption for the spouse too).
  • Apr 8, 2008, 02:22 AM
    MukatA
    Dual status in 2007 means you have met SPT in 2007. You can file joint return as residents for 2007.
  • Apr 8, 2008, 04:57 AM
    atny286
    Quote:
    Originally Posted by MukatA
    Dual status in 2007 means you have met SPT in 2007. You can file joint return as residents for 2007.
    Except if you choose for First-year Dual-Status (IRS Publication 519), you may not have met the SPT in 2007 and still file Dual-Status in 2007 (after you met SPT in 2008).

    Thanks,

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