[ekys1]

I'm leaving the US and my H1B sponsored job in early February 2011.

I'll receive about 6 weeks pay, unused holiday leave (about 5K) and about 5K of a pension plan that I started in June.

I'm a bit confused about the process:
Which type of return will I need to fill out?
Will I get the forms required immediately when I end employment or will they send them next year?
Can I fill in the form immediately?
Will I get the full year's tax credits or only the period I was in the US?

[MukatA]

When did you enter the U.S.

[ekys1]

I entered the US in 2006 (July)

[AtlantaTaxExpert]

You have a choice:

1) You can file as a dual-status alien, paying income taxes ONLY on the U.S.-sourced income. You will NOT be allowed to claim the standard deduction, but you CAN claim your spouse and children as dependents IF they are here in the U.S. with you in 2011.

OR

2) You can file as a resident alien, using 31 December 2011 as your termination date. That will require you pay taxes on ALL world-wide income earned in 2011. You can offset double taxation by claiming the Foreign Tax Credit for income taxes paid to foreign countries in 2011. This option allows you to claim the standard deduction, qualifies you for various credits in the U.S. tax return, and MAY result in less tax owed, especially if you are married and have children.

Your return needs to be modeled BOTH ways to see which is best.

If you need professional tax help, contact me next year at [email protected].