Hello,
Me and my spouse are both working in Texas on L1 VISA. Our 19 months old child is on L2. My spouse and kid came to USA on 6th Aug 2011 and I came on 22nd Sep 2011.
1) What will be the resident status for me and my spouse for year 2011? Is the Substantial Presence test applicable for us?
2) If we are non-resident alien, can we go for 'Married Filing Jointly'? Or is it applicable only for residents?
3) If we file as Married Filing Separately, can anyone of us claim Child Tax Credit for 2011?

Thanks in advance.

Thanks,
Koushik.

You can file jointly with your wife and you both CHOOSE to be treated as resident aliens. This will allow you to claim the $11,600 joint standard deduction plus two $3,700 personal exemptions (for yourself and your wife), PLUS the $1,000 Child Tax Credit and another $3,700 personal exemption for your child, who will need an ITIN.

To apply for an ITIN, you need to complete Form W-7 for your child. You need to make a photocopy of his passport, then get the photocopy notarized. This can be done at your local bank in most states in the U.S.

The downside is that:

- You must wait until about 15 May 2012 to meet the Substantial Presence Test before you can file for Tax Year 2011.

- You must declare ALL 2011 world-wide income (your AND your wife's home country income, if applicable). There is an offset available by either claiming the Foreign Tax Credit (Form 1116) or to claim the Foreign Earned Income Exclusion (Form 2555).

Even with the downside, this is probably the best way for you to file.

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