Hi,

I arrived from India to USA on July 29, 2007. And my wife and daughter arrived in US on Oct 27, 2007. I am on L1 visa and my wife & daughter are on L2 visas.

Please help me to understanding the following:

To claim Child Tax Credit ($1000) -
My daughter should be resident alien or if I am that is enough?
If not, then For resident alien, she should staisfy the "substantial presence test". Right?

As per the IRS site: To meet the substantial presence test, you must have been physically present in the United States on at least 31 days during the current year, and 183 days during the 3 year period.

Since she arrived in US on Oct 27, 2007. Am I eligible to claim for Child Tax Credit for 2007, if she completes the "substantial presence test" criteria in May 2008 or so?

If yes, please advise when can I amend my return so that by the time she fits in SPT criteria.


Please Note: I have SSN and my daughter have received ITIN from IRS.


Many Many thanks and appreciate your help ASAP.

Regards,
Manoj A

Hi,

Can anybody help please?

Thanks,
Manoj Agarwal

Choice 1: File nonresident tax return. You will only get exemption of $3,400. You can deduct moving expenses on form 3903 and itemized deductions (included state taxes paid.)

Choice 2: You can file resident tax return as Married Filing Jointly.
You will have to wait for over 5 months to file your tax return till you meet the Substantial Presence Test (of 183 days) in 2008.
You will get standard deduction of $10,700 and exemptions for both of you and the kids. You will also get child tax credit of $1,000 each.

You will complete forms W7 (application for ITIN) for your spouse and children and attach with your tax return. You can also deduct moving expenses. Use form 3903.