[johnbright.j]

I'm working in L1 Visa and my wife is a homemaker (L2 Visa) having 2 kids in L2 Visa. We came to US on 28 Aug. 2010.
Have got SSN for Wife, but Kids don't have the ITIN, need to apply while filing returns.

Can my Kids be qualified dependents, as still they don't have ITIN.

[MukatA]

You have two choices.
Choice 1: You did not complete SPT in 2010, you can file non-resident tax return. You can also deduct moving expenses for the family. Use Form 3903.

Choice 2: You can file resident tax return as Married Filing Jointly. You must wait to file your tax return till you meet the Substantial Presence Test in 2011. Read Your U.S. Tax Return: Substantial Presence Test
You will get standard deduction of $11,400 and exemptions ($3,650 each) for both of you and children. You must both declare your worldwide income for 2010. If you have any foreign income, and on that income you paid taxes in the foreign country, then you can claim foreign tax credit (Form 1116) or you can use Foreign Earned Income Exclusion (Form 2555). Read: Your U.S. Tax Return: U.S. Citizen or Resident with Foreign Income
You will complete forms W7 (application for ITIN) for your dependents attach with your tax return. You can also deduct moving expenses. Use form 3903.
If you decide to file as Married Filing Jointly as First Year Choice, you must attach a statement signed by both of you to your return stating that you qualify to file as residents as First Year Choice and that you CHOOSE to file this way. For more on the statement read page 9 (Statement required to Make First Year Choice) of Publication 519: Tax For Aliens.
File state tax return only after you get ITIN. Make sure to pay any tax due on or before April 18, 2011. If needed, file for extension.

[johnbright.j]

Thanks for your answers.
Couple of more questions based on your response.

[johnbright.j]

Thanks again.

2008: Stayed in the US for 60 days (B1 Visa)
2009: Stayed in the US for 42 days (L1 Visa)

2010:
I came to the US on July 11, 2010. Later I went to India for a week and brought my family on Aug. 28, 2010.


If I chose Choice 1 -

• Should I claim as 'Married filing jointly?'
• What you termed a moving expenses?
• Does that include all those household items bought in the US applies?
• Is that the original bills required for the moving expenses?
• Can I claim my kids a dependents?

If I choose choice 2 -

• My employer had already withheld the tax in the wages. So I'll not have any tax due - Correct ?
• Should I file for extension?
• Should I inform IRS that I'm waiting to meet the SPT i.e, 183 days ?

Above all, I'm not familiar on submitting all these forms like 3903, 1116, 2555 etc.
So, could you suggest to have some tax consultant doing the returns computation.

Thanks.

[MukatA]

Choice 1. It is filed as Single.
Your professional help you can contact AtlantaTaxExpert.

[johnbright.j]

Please provide contact details of Atlanta Tax expert.