[rams2008]

I am H1b Visa holder (from India) working in USA from Feb 2008. My wife & Child(H4 visa) came on Dec 15h 2008. To file my tax returns, I would like know whether I can get the tax benefit for my wife & child as dependent.If so, what's the procedure(1040A or 1040 which forms I need to fill). -- thanks VR>

[AtlantaTaxExpert]

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.

You will need to submit Forms W-7 to apply for ITINs for your wife and child. A notarized photocopy of their passport needs to be stapled to the W-7.

The downside is that 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.

You make photocopies of the FIRST page of the passport that has the picture on it. You then take these photocopies to a local bank to have them notarized, usually at no charge. If the bank will not do it, go to a local IRS office (call first to make sure they provide the service) to have the IRS officials certify the photocopy as a true copy of the passport.

Once completed, you take the STATE tax return and put it to the side for future filing (see below).

You will then sign the federal return, have your wife sign the return and W-7, while YOU sign the tax return and your child's W-7, then staple the notarized photocopies of the passport to the respective W-7 and paper clip both forms to the tax return. You then mail the tax return to the IRS.

The IRS receives the W-7, issues the ITINs, inserts the ITINs on the tax return and processes the return. The IRS then mails the ITINs to you and your wife in a separate envelope. This process takes between 4 weeks and three months, depending on the workload at the ITIN processing center.

Once you receive the ITINs, you then neatly print the ITINs on the state return and mail the return to the state.

If you need professional help to do this, email me at [email protected].

[rams2008]

Thank you very much for detailed information.

I am little confused about claiming my child as dependent, some where I read that , Dependent child should be resident of USA for at least 180 days. My child came to USA on 15th December 2008. That means she is here for 15 days during tax year 2008. My question is she still eligible for dependent tax benefit?

Thanks.. VR..

[MukatA]

You can file joint return with your spouse even if was never in the U.S.
If case of your child, IRS requires that child must be in the U.S. for some part of the year.