[clubfredd]

Greetings,

I'm on a L1 visa and have been here in the US since March 2009.
I'm still on the foreign company's payroll and the only $ I get is for lodging which is paid by the US company.

My question is:
1. Do I need to file tax? If so, where do I start or what form do I go with first? Just additional info - in my country, taxes are filed in April.

Thanks in advance!

[MukatA]

Yes, you must file the tax return. You are resident in the U.S. from March 2009 so you will file dual status tax return (unless you are married).
For period from March to Dec, you must report worldwide income.
What is your citizenship?

[clubfredd]

Hello Sir,

Thank you for your response. I am a non-US citizen and married.

[AtlantaTaxExpert]

You then have the option to 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).

You will need to submit Forms W-7 to apply for an ITIN for your wife. A notarized photocopy of her passport needs to be stapled to the Form W-7.

The downside is that 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].

[clubfredd]

Thank you for your response sir.
My wife is on an L2 and has a SSN.

I read somewhere that you cannot have an ITIN if you have a SSN - is this a fact? If not, then I too have to apply for one?

Also, would I still need a W2 from my employer even my salary is not being paid here?

[clubfredd]

One other thing, I was reading through the 1040 instructions and it said there I should file (married filing jointly) if our gross income is at least $18,700. What if the gross income that I have from the foreign company is less than that, should I still file taxes? Thank you again!

[AtlantaTaxExpert]

If your wife has a SSN, then disregard the guidance regarding the ITIN.

A W-2 from your employer would help, bt it is NOT required.

Yes, file jointly even if your income is less than $18,700.

[clubfredd]

Thank you kind sir.

So I just need forms 1040 and 1116? Would I also need form 2555?

[AtlantaTaxExpert]

Negative on the Form 2555.

To qualify for the Foreign Income Exclusion, you must be in resident alien status AND working overseas for a full year, which you will NOT be for 2009.