[veerababu]

I come to us in August 2006 with my wife and 2 kids. If I want file 2010 tax return as filling jointly. My wife is eligible or not? I am on l1b and wife and kids are in l2 visa.
My kids are eligible for child tax credit for year 2010?
Which option should I used to apply itin for them? Can select resident alien?

Should I have to wait unitl end of Feb 2011? To eligible present test.

Thanks in advance!

[AtlantaTaxExpert]

I am not sure you have your dates right.

If you came in 2006, you could have filed jointly with your wife as residents in 2007 and for every year after that.

Now, if you arrived in August 2010, THEN you need to wait until sometime in May to meet the Substantial Presence Test. You can file jointly with your wife and you both CHOOSE to be treated as resident aliens. This will allow you to claim the $11,400 joint standard deduction plus two $3,650 personal exemptions (for yourself and your wife) PLUS two additional $3,650 exemptions for your children PLUS TWO $1,000 Child Tax Credits. Your wife and children will need ITINs, though,

To apply for an ITIN, you need to complete Forms W-7 for your wife and children. You need to make a photocopy of their passports and visas, 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 wait until sometime in MAY 2011 to meet the Substantial Presence Test before you can file for Tax Year 2010. I will file the extension (Form 4868) for you as part of my service at no additional charge.
• You must declare ALL 2010 world-wide income (wife's and YOUR 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 you need professional help filing your return, email me at [email protected].