[DSGupta]

My query is about 2007 Tax. I have taken extension to file by Oct 15.

I am an Indian citizen went to US on L1 in June 2006. I lived for 190 days in US in the year 2006, and thus qualified as Resident Alien under SPT. I filed Form 1040 for 2006.

I returned back to India on 4 April 2007. I stayed for 93 days in US and do not qualify for Resident status (93 + 1/3 of 190 is less than 183). I have prepared my return on 1040NR as Non Resident for 2007, but just got the following doubts:

1. Do I have to file Dual-Staus Return? Since I did not qualify SPT in 2007, my understanding is that I do not have to submit Dual-Status return. Advise.
2. Will I be able to take Exemption for my 2 kids (Less than 15 years) and spouse as dependent? One of my kids is born in US and mainatins US citizenship. My spouse and 2 kids lived in India during my stay in US between June 2006 and APRIL 2007.

Since tomorrow is last date to file, I would appreciate a quick response.

Thanks in advance.

[AtlantaTaxExpert]

1) You must file a dual-status return for 2007.

2) In order to claim exemption for your wife and children, they must spend at least part of the tax year in the U.S. regardless of their citizenship. Since they did not do this, you CANNOT claim them as dependents.