Hi,

I was on L1 with my wife (she did not have any income) and son for 2 years (Jul 2008 to Jul 2010) and returned to India in Jul 2010. I don't plan to go back to US for a few years.

1. Can I file my 2010 tax as married filling jointly as a resident alien?
2. Can I claim standard deduction, child credit etc for 2010 (the way I did for 2009 tax returns)?
3. Do I need to declare my India income (from Aug 2010 - Dec 2010) in my tax filing?
4. Will I be able to claim foreign tax credit for my India income?

OR, Do I need to file dual tax?

Needless to say, I would want to maximize my refund.
Looking forward to your expert opinion.

Thanks,
Ashish

1) Yes, you can file as a resident for 2010, but you must declare ALL world-wide income earned in 2010. You can claim the Foreign tax credit for taxes paid on Indian income to India.

2) Yes.

3) Yes.

4) Yes.

After you file (efiling is possible), you also need to submit a Residency Termination Statement to the IRS by 15 June 2011 so the IRS knows to remove you from their database as a resident alien. Both you and your wife must sign this statement, which MUST be mailed.

If you have not yet filed, and you need professional help filing your return, email me at [email protected] or [email protected].