Hi. I have been in the states since January 2006. I am here on an F1 visa with my wife and other two kids who are on F2 visa. I have filed taxes all the years I've been in the states as a nonresident alien. Now can I file this year as a resident alien for tax purposes since I've been in the states for five years? Can I claim my kids as dependent? And which would be better to file as resident or non resident alien? Thanks

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Originally Posted by sadanyh

Now can I file this year as a resident alien for tax purposes since I've been in the states for five years?"

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No.You are a nonresident alien for 2006, 2007, 2008, 2009 and 2010. If you are in the U.S. for at least 183 days, then you will be a resident for tax purposes( under the US Tax Code) in 2011.

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Originally Posted by sadanyh

Can I claim my kids as dependent?"

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Normally, on the nonresident tax return,as a F1 visa holder, you get your personal exemption and itemized deductions, and you do not get exemption deductions for your spouse and dependents except if you are from India, Japan, and Korea and some other several countries if allowed by the tax treaty.

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Originally Posted by sadanyh

and which would be better to file as resident or non resident alien? "

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If you are a resient alien under the US Tax Code, then you file either 1040 or 1040a/1040ez( if you do not claim your itemized deductions). Your income is generally subject to tax in the same manner as a U.S. citizen. You must report all interest, dividends, wages, or other compensation for services, income from rental property or royalties, and other types of income on the U.S. tax return. These amounts must be reported whether from sources within or outside the United States, I mean both US source and your World wide income. You can also claim your personal exemptions, $3,650 in 2010 per perswon, and exemptions for your dependents, as you mentioned above, according to the dependency rules for U.S. citizens and resident aliens.

As a non-resident alien, you are required to file an income tax returnby using either the Form 1040NR or, if qualified, Form 1040NR-EZ. You usually are subject to U.S. income tax ONLY on yourU.S. source income. Also,you can't claim the standard deduction. However, students , F1 visa holder,and business apprentices, J-1 visa holder from India may be eligible to claim the standard deduction.cannot claim deductions related to income that is not connected with their US business activities. Except for your dependents' personal exemptions( except as said above), and certain itemized deductions, you can claim deductions only to the extent you are connected with your effectively connected income.

I have passed the test they have for residency and I stayed more that 183 years in the U.S. but on an F1 visa. So I can file as a resident alien for tax purposes. Do I get a tax return for my wife and children who were not born in the states and are on an F2 visa ? And how much would that be?

No, you CANNOT file as a resident.

For the first FIVE calendar years of the time under a F-1 visa, you are EXEMPT from the 183-Substantial Presence Test. Hence, you will file in 2010 as a NON-RESIDENT ALIEN.

QUOTE,"and how much would that be? "---Do you mean the amount of your tax refund on the tax return that you filed in 2010? I do not know how much it'd be; I have no anyidea on your tax return in 2010.
As you know, tax refund is overpaid taxes from the government to you, a taxpayer. Refunds are due when you have been Overwithholding or have overestimated income or underestimated deductions, exemptions, and credits. Though you may like the fact that you are getting a tax refund, in fact you are granting the government an interest-free loan for most of the year.