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rpisal · Jun 1, 2010, 04:33 AM

Hello,
I will be traveling to the US in July on L1 visa (most probably early or mid July). My family (wife, son and daughter (who is a US citizen) ) will join me in July end or August. I will be getting a salary of 95K. I will continue to stay in the US till July 2011.
1. For filing the tax returns in 2011, what are my options as I don't think I will be able to pass the substantial presence test.
2. Considering this which W4 (I heard there is separate W4 for residents and non-residents) should I fill out.
3. How many exemptions can I claim for my tax calculations and roughly how much would be my take home pay (semi-monthly).
4. I have stayed in the US (California) in the past from 2000 to 2006 and was paying regular taxes

rpisal · Jun 1, 2010, 10:02 AM

Can one of the experts please give some advice as I need to make my plans accordingly and it is very urgent

AtlantaTaxExpert · Jun 1, 2010, 01:53 PM

1) You can file jointly with your wife and you both CHOOSE to be treated as resident aliens. This will allow you to claim the $11,700 joint standard deduction plus two $3,800personal exemption (for yourself and your wife) plus a $3,800 exemption for your child PLUS the $1,000 Child Tax Credit.

I assume your wifehas an ITIN or SSN.

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 2009.

• You must declare ALL 2009 world-wide income (your and yourwife's home country income, if applicable). There is an offset available by either claiming the Foreign Tax Credit (Form 1116) or to claim the Foreign Earned Income Exclusion (Form 2555).

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

2/3) Even though you are married with a child, the IRS rules for foreign workers specify that the most you can claim on your W-4 is MARRIED with TWO allowances to endure enough taxes are withheld from your salary

rpisal · Jun 2, 2010, 02:33 AM

Thanks a lot Atlanta Tax Expert. I am trying my best to reach before July.

1. In case I reach before July but if my family joins me after July (say in August), can I still file as resident alien (with married status and 3 dependents) while filing taxes.

2. For my son (who is not a US citizen), do I need to get ITIN, for me to claim him as a dependent on my tax return. If yes, what would be the procedure for the same (any necessary documents).

3. I tried calculating my take home pay on PaycheckCity.com | Web-Based Paycheck Calculators and I was asked to enter allowances for my state (CA). The details say "Enter the number of allowances claimed from the California for DE 4, worksheet A. This number may include self, spouse, dependants and blindness for self or spouse totals. "
Should I select 2 here (1 for me and 1 for my wife only) or can I also include my children? The number chosen here makes a difference in the net pay.

AtlantaTaxExpert · Jun 2, 2010, 08:03 AM

1) The key is NOT when your family is here; the key is when YOU are here, when it comes to the date you file your return. If you get here BEFORE 1 July 2010, then you have NO wait. It you get here AFTER 1 July, the wait is at least four months and up to 6.5 months.

2) Yes, you will need an ITIN for your son. You will submit Form W-7 to apply for the ITIN, along with a notarized photocopy of his passport picture page.

3) For California, include your child. The restriction of only TWO allowances does NOT apply for the California withholding.

rpisal · Mar 21, 2011, 02:08 PM

I finally landed in the US on 31st July. I will not be able to satisfy SPT for calendar year 2010. So if I decide to wait till I complete 180 days stay (as I will be here the whole year 2011) , what are my options?
One option you have mentioned is to wait till May 2011 but then does it mean I don't have to do anything for April 15th deadline? Or do I still have to file the return but don't submit it till May 2011? Please explain

rpisal · Mar 21, 2011, 02:09 PM

I finally landed in the US on 31st July. I will not be able to satisfy SPT for calendar year 2010. So if I decide to wait till I complete 180 days stay (as I will be here the whole year 2011) , what are my options?
One option you have mentioned is to wait till May 2011 but then does it mean I don't have to do anything for April 15th deadline? Or do I still have to file the return but don't submit it till May 2011? Please explain

AtlantaTaxExpert · Mar 21, 2011, 04:39 PM

You should mail Form 4868 to request the automatic six month extension to 15 October 2011. Ou should also do a rough calculatioon of your tax rteurn to determine if you owe money. If not, just mail the Form 4868.

If you do owe money, write a check to mail WITH the Form 4868.

If you need professional help filing your return, email me at [email protected] or [email protected].

rpisal · Mar 22, 2011, 07:48 AM

1. Should I use "Married Filing Jointly" status for doing the rough calculation?
2. What happens if the tax I calculate does not match with my actual tax liability (in case I calculate less for some reason)?
3. Is it legally allowed to file Form 4868 just so that I can satisfy the SPT rule (180 days stay rule) ? Considering the I am working on L1B visa and do not have green card nor am I a US citizen.
4. In case IRS asks me to provide a valid reason for filing Form 4868, can I give this (for satisfying the SPT rule) as an answer?

rpisal · Mar 22, 2011, 07:49 AM

I am currently in the state of New Jersey. What should I do for filing the state taxes?

AtlantaTaxExpert · Mar 22, 2011, 05:19 PM

You are making this WAY too complicated.

The extension from the IR is automatic; they do not even acknowledge receipt of the Form 4868 unless it is filed electronically.

Most states do not require extensions be requested, or they accept the filing of Form 4868 with the IRS to apply to them as well.