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anilar05 · Jan 22, 2009, 10:17 PM

Hi, I am Anil from India and I work as an IT Consultant. I arrived in US on July 26th and have to file my tax returns. I was asked to file a 1040 NR form. Is that applicable to me or should I fill in the normal form? Please help me to choose the right form. Also note, that I have not even stayed in US for 180 days in 2008.

MukatA · Jan 23, 2009, 03:14 AM

Which visa do you have? Are you married or single?

anilar05 · Jan 23, 2009, 10:43 AM

I am married and also have a Kid. I am on L1-A Visa.

AtlantaTaxExpert · Jan 23, 2009, 11:48 AM

If you are going to stay in the U.S. until 10 May 2009, you can file jointly with your wife and you both CHOSE to be treated as resident aliens. This will allow you to claim the $10,900 joint standard deduction plus two $3,500 personal exemption (for yourself and your wife) plus one $3,500 for your child PLUS the $1,000 Child Tax Credit.

The downside is that:

• you must WAIT to meet the Substantial Test before you can file, which means you must wait until about 10 May 2009.

• you must declare ALL 2008 world-wide income, but you can at least partially offset any double taxation by claiming a Foreign Tax Credit (Form 1116).

Even with the downside, this is probably the best way for you to file. With the tax return, you will need to submit Forms W-7 with notarized photocopies of your wife's and child's passport to get them ITINs.

If you need professional help doing this. Contact me at [email protected].

anilar05 · Jan 23, 2009, 12:17 PM

Unfortunately, I am going to leave US by this month end. Would this still be the best way for filing my tax returns? I still have a confusion around the regular 1040 and 1040NR form (which one to use)

Many thanks for replying to my question.

Thanks,
Anil

AtlantaTaxExpert · Jan 23, 2009, 12:24 PM

Then you must file as a non-resident alien, which prevents you from claiming either your wife or your child as a dependent.

However, your limited duration stay does make the job a temporary job in the eyes of the IRS, so you can claim your daily living expenses (lodging, food, transportation, travel, incidentals) as itemized expenses on your Form 1040NR. This assumes you were NOT reimbursed for these expenses by your employer with a tax-free stipend.