HI,
I have been living in US right from the 1st Jan 2006 on L-1 Visa. My wife(not working) and minor daughter (3 year) joined me in US on 17th June 2006 and still with me here in US(effectively they stayed with me in US 6.5 months in year 2006).

My income sources are only wages and $41 as bank interest.

Request you to please clarify the below doubts I have on federal tax returns and ITIN.

Thanks in advance for your help.

1. Which form I have to use for federal tax returns( 1040, 1040A, 1040NR)?

2. What would be my filing status, is it Married filing jointly?

3. Can I claim my daughter as a dependent though she lived with me here in US around 6.5 months in year 2006?

I am eagerly looking for your advice.
Thanks once again.

Gundeti

It seems to me that you would almost certainly be best off having your wife elect to be a resident for the full year and filing a joint tax return. If you both had no foreign income in 2006, this should work out well. If you do have foreign income it would get more complicated and you would claim a foreign tax credit. If you have foreign investments it could also involve some more complex issues.

You would file a 1040.

Thanks for the reply. Now I am going to use 1040 form with married jointly status and claiming my chiled tax credit ($1000).

We don't have any forien income in year 2006.

But, just to curious to know more on the last statement you made in the reply
"If you have foreign investments it could also involve some more complex issues."

1. what are all types of investiments in India considered as foreign investments
a. buying a land in 2006
b. invested in stocks(less than $4000 equal in foreign currency) before jan1 2006 also to be considered as investment for year 2006?

Thanks very much

Gundeti

If you are a resident, you must report your worldwide income. This would include dividends, capital gains, interest, rent etc even from abroad. In addition, if you own foreign mutual funds etc you could run into PFIC issues. These are much to complex to expand upon here!

All issues covered! No comment!