[GillHill]

Hi, my husband and I moved to the US from the UK on April 22 2009. He has an H1B visa, and I am therefore H4. I went home for the holidays Dec 2 2009 - Jan 4 2010. He went home December 23 - Jan 4. Otherwise we haven't left the US.
The only income we have in the US is his wages, and the only substantial purchase made is a car. We have a home in the UK we are renting out, profit is small and doesn't meet UK tax requirements.
I can't figure out if we are nonresident or resident aliens! I think he is a dual status and possible I should elect to be resident so we can file jointly. Is this correct? Would it be easier to be non-resident to ignore the profit from our home in the UK?
We will be living in the US for the foreseeable future.
Many thanks for your help

[MukatA]

Yes, you can file joint return as residents. You will get standard deduction of $11,400 and exemptions ($3,650 each) for both of you.

You must both declare your worldwide income for 2009 including UK income. If you have any foreign income, and on that income you paid taxes in the foreign country, then you can claim foreign tax credit (Form 1116). Your U.S. Tax Return: U.S. Citizen or Resident with Foreign Income