[satish_s1983]

Hi,

Please find my case below and please answer my questions.

1. I came to US on April 2 2011 on L1B.
2. My wife and my kid joined me on September 2 2011 on L2.
3. I got a sponsor and changed my L1B to H1B and joined the new employer on November 2011. In the same process my wife and kids visa changed to H4.
4. I am a resident alien by substantial presence test but my wife and kid are not. Can I use married file jointly option?
5. Do I need to submit any statement to treat my wife and kid as resident alien?
6. Where or what form shall I use to enter my foreign income (salary) for January to march 2011 in India.

Please help me with answers for these questions. I tried online tax software but no option to include foreign income. Also I am confused about dual status. Please help me.

[AtlantaTaxExpert]

Satish:

Some on-line tax sofwtare has NO provision for foreign income.

You can file jointly with your wife and you both CHOSE to be treated as resident aliens. This will allow you to claim the $11,600 joint standard deduction plus two $3,700 personal exemption (for yourself and your wife), plus you get another $3,700 exemption for your child AND the $1,000 Child Tax Credit. You WILL submit a Residency Choice statement with the tax return.

To apply for an ITIN, you need to complete Form W-7 for your wife and your child. You need to make a photocopy of their passports, then get the photocopies notarized. This can be done at your local bank in most states in the U.S. The notarized photocopy is stapled to the SIGNED Form W-7, then paper clipped to the tax return with your spouse's and child's names on the return, but with the SSN area blank.

The IRS evaluates the W-7s and notarized passport photocopies, and, if all is in order, they issue the ITINs and insert them on the tax return where your wife's and child's SSNs would go. The return is then processed and the refund is sent to you.

The IRS then issues ITIN letters which are mailed to you in separate envelopes. You then insert the ITIN on the state tax return and submit it.

All in all, the process takes about ten weeks to complete.

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