I am an india citizen and stayed in US for 7 years. Last year during aug 2011, I moved back to India. When US filing taxes, should I file it as a foreign national, or as a resident of the state where I last lived? Can I give my foreign address for correspondence? Thanks

What date did you leave U.S. Your visas during 7 years stay? Which form did you file in 2010?

You can file an expatriate dual-status return and pay taxes ONLY for the income earned in the U.S.

OR

You can file as a resident for all of 2011 and claim ALL world-wide income, filing Form 1116 to claim the Foreign Tax Credit to taxes on income earned in india after your return.

In either case, you need to submit a Residency Termination Statement to the IRS by 30 June 2012.

Note that the dual-status return is NOT for amateurs; get professional help from a tx professional with experience filing such returns.

If you want my professional help, double-click on my title above and scroll down to my profile/signature. You will find my email address and websites there.