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    thandamilk's Avatar
    thandamilk Posts: 3, Reputation: 1
    New Member
     
    #1

    Apr 22, 2008, 03:23 PM
    Benefit of Filing as Resident Alien
    Hi,

    My wife & moved to Chicago, IL in Oct 2007 from India. I tried filing my state tax returns electronically but they were returned because neither of us have a state drivers license or IL-PIN.

    After speaking with a representative at the Illinois Revenue department, I realize that I have to send in my returns by mail. Also, I have till Oct-15 to file my returns since mine is a refund-due return.

    Currently I am filing as a part-year resident along with Schedule NR. From what I understand from these forums, I may be eligible to file as a resident alien after May 15, 2008.

    What benefit do I have from filing as a resident alien? Would I get more of a refund because of this status change? Would I still need to file Schedule NR?

    Thanks for your assistance.
    MukatA's Avatar
    MukatA Posts: 7,110, Reputation: 176
    Tax Expert
     
    #2

    Apr 22, 2008, 06:52 PM
    For IL you are part year resident for 2007. Their definition of resident or nonresident is different from that for federal. You are IL residnet only if you live in IL for full year or have a tax home for full year.

    What is your visa? Only then we can tell if you can file federal return as residents or you must file nonresident return.
    If you have a work visa L1 or H1-B, you may be able to deduct moving expenses. Read: Your U.S. Tax Return: Moving Expenses


    On the resident return, you will get standard deduction of $10,700 and exemptions for both of you. You must both declare your worldwide income for 2007. If you have any foreign income, and on that income you paid taxes in the foreign country, then you can claim foreign tax credit. Read: Your U.S. Tax Return: U.S. Citizen or Resident with Foreign Income

    You will complete forms W7 (application for ITIN) for your spouse and children and attach with your tax return.

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