[sgadewar]

Hello

I moved to USA with my family on 9th November 2009. I moved with my wife and 2 kids from India.

I would like to know which form I should file, 1040NR.
Also would like to know if my kids qualify for child tax credit?

Can I itemize my deductions or use the standard one.

Also I purchased car in 2009 by taking vehcile loan, Do I need to specify for same while filing taxes

[AtlantaTaxExpert]

I need to know under what type of visa you can to the United States.

It makes all the difference as to which type of return you can file, and when.

[sgadewar]

Hello

Thanks for the answer provided. I am on L1A Visa.
Other confusion I have is one of my kid is US citizen by birth who was born when I was in USA last time from 2000 to 20005

[MukatA]

Choice 1: You can file nonresident tax return. Claim moving expenses for the family; complete Form 3903. You may not have any taxable income.

Choice 2: You can file joint return as residents for 2009 after you complete substantial presence test in 2010. You can claim the dependent as well moving expenses. Your U.S. Tax Return: Substantial Presence Test

[sgadewar]

Which means if I go with choice 1 I cannot claim peronsonal exemptions, standard deduction and child tax credit.

[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 $11,400 joint standard deduction plus two $3,650 personal exemption (for yourself and your wife) plus two $3,650 exemptions for your children PLUS TWO $1,000 Child Tax Credits.

You will need to submit Forms W-7 to apply for ITINs for your wife and the one child who is NOT a U.S. citizen. A notarized photocopy of their passport needs to be stapled to the respective Form 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 about 15 June 2010.

• you must declare ALL 2009 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.

If you want professional help doing this, email me at [email protected].