Hi,

I am not clear about the best tax status to choose (if at all I have the option), so any help would be appreciated.

I moved to New York City along with my wife from London, England on July 1, 2008. I am on an L1 visa and she is on L2 (she does not work currently). The move is intended to be long term / permanent.

I also came to New York in June for a period of 8 days (both travel in/out days inclusive - though I am not sure whether to include travel days or not for calculation purposes). I also travelled out of the US for a period of 6 days in August (both travel in/out days inclusive).

Should I file as resident or dual status (or non resident? ) for 2008. If so, should/can I file as married / single? Which would offer the best advantages? Is my wife's status resident / non resident?

Some more info: I am Indian (not sure whether that changes anything) and for the period Jan 1, 2008 - Jun 30, 2008, I was paid GBP48,500 ~ $95,500 on which I have paid taxes in the UK.

Thanks for your help.

You should file joint tax return as residents. On the resident tax return, both of you must report your worldwide income even income in the UK. You will claim foreign tax credit by filing form 1116. Read: Your U.S. Tax Return: U.S. Citizen or Resident with Foreign Income

Second choice is file dual status. On the dual status tax return, you will not report your UK income, but you will also not get standard deductions for both of you (total $11,100).

You can also deduct moving expenses. Read: Your U.S. Tax Return: Moving Expenses

You can also file a joint return as resident aliens, and use Form 2555 to EXCLUDE the UK income, provided you meet the criteria.