Hi,

I came to US in April'07 on H1B and started working since May'07. My wife and kid came in August'07. I am confused as to whether 183 day rule applies to them or is it fine as long as they are physically present in US by Dec 31 for tax filing purposes?

Appreciate any help.

Thanks,
Sursi

Sursi:

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 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