Hi

This is my summary for the tax year...


Indian Citizen... Entered USA on F1 on AUG 2003, Worked on OPT from NOV 2005 to SEP 2006, on H1 from OCT 2006 till the year end.


Got married on Dec. 15, spouse indian citizen, and never entered U.S.A. returning with spouse frm India on Jan 29 2007.

My annual income for 2006 would be $88,000, earnings from interest about $600 and paid about $2500 sales tax on a new car purchase. Live in the Illinois.

Made a donation to an Indian Non Profit Organization for about $3000, Can I claim this?

What are my options for filing tax returns?

Thanks in advance
Pavan

Pavan:

Since you are an Indian citizen, you should file as a non-resident alien (Form 1040NR). You can claim your spouse as a dependent on Form 1040NR and be able to claim as itemized deductions:

- EITHER sales tax (determined by forumula PLUS the $2,500 sales tax on the car) or Illinois Income Tax withheld, whichever is higher.
- The $3,000 in charitable donations (you will need receipts).
- Any other itemized deductions available to you.

At face value, it looks like these itemized deductions will exceed the $5,150 standard deduction.

The $600 in interest income will be exempt from taxes.

You CANNOT file as a resident alien because your spouse has spent no time in the U.S. in 2006.

Contact me at [email protected] if you need more details or you need help to file your 2006 return.