I am from India and have been in US from Oct 2009 on L1 and US payroll. According to my presence in US for the last 3 yrs i.e. 2007, 2008 and 2009; I clear the Substantial presence test. I was present in US for about 80 days during Feb-April period but was not on a US payroll. I used to get per diem during that period.

I have couple of questions here:
- Do I qualify for resident alien status or non-resident alien? There is something related to closer connection to other country as my tax home.
- What forms should I fill and can I claim standard deduction and tax exemption.

Thanks in advance.

If you meet substantial presence test in 2009, you will file resident tax return Form 1040. You will get standard deduction and exemption deduction.
You must report worldwide income for 2009 on the tax return. If you paid taxes in foreign country, you will claim foreign tax credit Form 1116 or foreign income exclusion. Your U.S. Tax Return: U.S. Citizen or Resident with Foreign Income

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Originally Posted by MukatA

If you meet substantial presence test in 2009, you will file resident tax return Form 1040. You will get standard deduction and exemption deduction.
You must report worldwide income for 2009 on the tax return. If you paid taxes in foreign country, you will claim foreign tax credit Form 1116 or foreign income exclusion. Your U.S. Tax Return: U.S. Citizen or Resident with Foreign Income

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Thanks for your reply.
Couple of questions - on my previous visits I was not getting a US salary. I was only getting per-diem.

- Should I count that period while calculating days for Substantial presence test?

- Also, while calculating my world-wide income, should I consider my Indian taxable income (after the deductions like house-rent allowance etc.) or my gross income and include the deductions also as part of my worldwide salary?

Another questions about foreign income exclusion - Below is the break of my stay in US:

2007: 19 Oct - 31 Dec
2008: 1 Jan - 5 Jan; and 5 Apr - 20 June
2009: 31 Jan - 18 Apr; and 24 Oct - 31 Dec

Can I claim foreign income inclusion for my income earned in India for year 2009?

Thanks for you reply.

Yes, you count ALL days in the U.S. for SPT if on H or L visa.

Your count your GROSS income from India.

You spent too much time in the U.S. to qualify for the Foreign Earned Income Exclusion.