[ZifahMirak]

Any help in this matter is solicited. Many of my friends who came in July are in the same "quandry"
I have a questions related to claiming some tax credits when I file my returns for calendar year 2009. Here is my situation

* Visa - L1-A
O Date of last departure from US - Feb27' 2007.
O Date of last arrival in US - July 4 ' 2009 (Was abroad from 2007 till this date)
O I have passed the substantial presence test - because I could claim credit for the duration in 2007



* Visa status of my wife - L2
O Date of last departure from US (for my wife - Dec 2006)
O Date of latest arrival in the US - July 4 ' 2009
* Visa status of my daughter - L2
O My daughter was born in 2007 and its her first time in the US
O Date of latest arrival in the US - July 04' 2009

Based on the data above, I have 2 questions
As of Dec 31' 2009, my daughter and wife don't qualify as a resident aliens for the substantial presence test. (For 2009, they are present here for 181 days)

I have heard that since the main tax filing person (that is me ) qualifies as resident alien by the SPT, can I do the following

* Can I Claim my wife and child as dependents when I file my tax return for 2009(I plan to do it sometime in mid Feb)
* Can I claim the $1000 child tax credit for my daughter in spite of the fact that she doesn't pass the substantial presence test for 2009 ? (181 days)
* Does the nr of days stayed in 2010 mean anything when we are filing the returns for 2009
I hate to lose the child tax credit just because of 2 days :-(

[AtlantaTaxExpert]

Because YOU have met the Substantial Presence Test, you can file jointly with your wife and she will CHOOSE to be treated as a resident alien. This will allow you to claim the $11,400 joint standard deduction plus two $3,650 personal exemption (for yourself and your wife), plus the $3,650 person exemption for your daughter, PLUS the $1,000 Child Tax Credit. There is NO requirement to wait to file.

To apply for an ITIN, you need to complete Form W-7 for your wife and child. You need to make a photocopy of their passports, then get the photocopies notarized. This can be done at your local bank in most states in the U.S.

The downside is that you must declare ALL 2009 world-wide income (wife's home country income, if applicable). There is an offset available by either claiming the Foreign Tax Credit (Form 1116).

Even with the downside, this is probably the best way for you to file.

If yo need professional help, contact me at [email protected].

[ZifahMirak]

Dear atlanta tax expert, thanks for answering my question. I have one additional follow up question
I was present in 2007 for 60 days, 0 (zero) days in 2007 and 180 days in 2009. Can I consider my qualified under the substantial presence test ? I have been told by some of my friends that 0 days presence in 2008 implies that I cannot take credit for my presence in 2007 ?

Thanks in advance for your help. It is very much appreciated

[ZifahMirak]

Correction to my previous post :-
Dear atlanta tax expert, thanks for answering my question. I have one additional follow up question
I was present in 2007 for 60 days, 0 (zero) days in 2008 and 180 days in 2009. Can I consider my qualified under the substantial presence test ? I have been told by some of my friends that 0 days presence in 2008 implies that I cannot take credit for my presence in 2007 ?

Thanks in advance for your help. It is very much appreciated

[AtlantaTaxExpert]

You DO qualify for the SPT, even with NO time spent in the U.S. in 2008.