[vinamp]

Hi,
I landed on 21 March 2010 in NJ. I am on L1 from India and would be leaving in September.
During this period I was paid by a U.S. affliate of my Indian company. Will I get the benefit on the tax for less than 183 days.

[wnhough]

Will I get the benefit on the tax for less than 183 days.

---Yes. Yu will.However, for 2010, you will file your tax return as a non-resident alien, filing either Form 1040NR or Form 1040NR-EZ, because you have been here in the U.S. for less than 183 days, not passing the residency test.
You can deduct your personal exemption of $3,650 ( for 2010) and itemized deduction( if itemized deduction> standard deduction) but you can't claim your standard dedcution without a tax treaty provision between the US and India, and FICA Taxes withheld from your W2( I bet due to no presence of the social security system in INDIA) unlike other visa holders such as F1, Q, M or J visa holders( some of them, not all of them, depending on their residency status under the US tax code).
Also, u can't file your non-resident alien return on-line, but you must mail the return to the IRS.

[vinamp]

Hi wnhough,
Can you please elaborate.. what is the tax benefit for less than 183 days compare to more than 183 days here.

[wnhough]

Quote,"what is the tax benefit for less than 183 days compare to more than 183 days here."--- Once you , as L1visa holder, pass the residency test by having completed 183 days in the U.S. [Then under the US Tax code, the IRC, you will become a resident alien for tax purposes NOT under the IMMIGRATION LAW], then you can file your IRS form 1040, 1040ez or 1040a( if you do not claim itemized deduction);as a resident alien, you can file as Married Filing Jointly for the lowest tax bracket and claim your kid(s)( if applicable) as your dependent(s), reducing your tax liability by reducing AGI or TI. Also, as married filing jointly, your standard deduction is $10,700( for 2010 if you claim your std. ded. Over your itemized ded.) and three exemptions of $3,650 ( for 2010) for you ,your spouse and kid(if you have one kid). You also are eligible for Child Tax Credit, MWP crdit (for 2010) or even EIC( if both of your couple and your kid have SSN)or etc. Thus the amountd of total deductions or tax credit amounts will increase.
If you don't pass the residency test, you need to file your tax return as a nonresident alien as said above. You can deduct your personal exemption of $3,650 ( for 2010) and itemized deduction( if itemized deduction> standard deduction) but you can't claim your standard dedcution without a tax treaty provision between the US and India, and FICA Taxes withheld from your W2( I bet due to no presence of the social security system in INDIA) unlike other visa holders such as F1, Q, M or J visa holders( some of them, not all of them, depending on their residency status under the US tax code).
Generally, you cannot file your tx return as married filing jointly,MFJ if either you or yourspouse was a nonresident alien at any time during the tax year.

[MukatA]

Hi,
I landed on 21 March 2010 in NJ. I am on L1 from India and would be leaving in September.
During this period I was paid by a U.S. affliate of my Indian company. Will I get the benefit on the tax for less than 183 days.

L1 is work visa. You must pay SS tax, Medicare tax and income taxes. There is no treaty benefit. Since your stay was less than 183 days, you will file nonresident tax return and will not get standard deduction. You will get itemized deductions.
You can claim travel expenses, which include transportation, lodging and meals.Use Form 2106 or 2106-EZ to figure your allowable expenses that you claim on line 9 of Schedule A (Form 1040NR). Your U.S. Tax Return: Itemized Deductions