Hi

I am an Italian citizen who moved to the US on 1st October 2010 with wife (unemployed) and child on L-1 visa, but now returning to Europe at end of February 2011. I believe I overpaid taxes in 2010 as my witholding was taking into account my full annual income while I only earned 1/4 of that (October to December only). Also I need to take into account "relocation" expenses and benefits paid by my company in moving me here, although not directly to me, which could probably inflate my gorss salary. I would like to know what is the best filing option for me in order to recover as many taxes as possible (dual filing, non-resident alien, married filing jointly, etc.) and to whom I should go to for having this done as quickly as possible as I will be leaving the US in less than 2 months.

Many thanks

Bauzo:

You will file as a non-resident alien, filing Form 1040NR with Form 2106 to claim daily living expenses of rent, food, incidental costs, travel and local transportation. You can deduct these daily living expenses because your work tour, being less than one year, meets the IRS criteria for being TEMPORARY in nature. If you file as a non-resident, you CANNOT claim either your wife or child on the return. The Form 2106 calculations is an itemized deduction which is claimed on Page 3 of the Form 1040NR.

The First Year Choice potion of filing jointly with you wife is NOT available to you because you must wait until 1 June 2011 and living in the U.S. for all of that five month period in order to meet the Substantial Presence Test. Your scheduled departure in February prevents that,

Thank you. Is there any way I can get in touch with you so that we can discuss assistance in filing?

Certainly; email me at [email protected], and I will send you a phone number to call.