[Pradekar]

Hi

I have filed the tax extension form before April 15 because I came in US by Oct 4 2009 and my family members joined me by Dec 29. To claim family members with the return I would need to file as a resident. I would like to know when I should I file my return, I would need to file the ITIN also along with my return. Now I completed 6 months in 2009 and three months in 2008 so when should I file my return to file as a resident.

Thank you

Pradeep

[MukatA]

Which visa do you have.
If you are not exempt from residency, then you can file joint return as residents.

[Pradekar]

Which visa do you have.
If you are not exempt from residency, then you can file joint return as residents.

I am on H1B and my family members on H4. Since I was not eligible to file my return as resident along with family status before April 15th, hope now I am eligible to file 2008 return as resident with family status. I also need to file the ITIN along with the return. Please correct me.

Thank you

Pradeep

[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 each child PLUS the $1,000 Child Tax Credit for each child.

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

The downside is that:
• you must WAIT to meet the Substantial Presence Test before you can file, which means you must wait until 1 June 2009 (you have already done this).
• you must declare ALL 2008 world-wide income for BOTH you and your wife, 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.

While the return is being prepared, 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.

If I prepare your returns and Forms W-7, the tax return and Forms W-7 will be sent to you for review and approval before they are printed, signed, packaged and mailed to you for signature. A tax return is a legal document which must have original signatures by the taxpayers.

Upon receipt of the package, 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 children's W-7s, then staple the notarized photocopies of the passport to the respective W-7s and paper clip both forms to the tax return. You then mail the tax return to the IRS.

The IRS receives the W-7s, 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 separate envelopes. This process takes between 4 weeks and three months, depending on the workload at the ITIN processing center.

You then neatly print the ITIN on the state return and mail the return to the state.