[samar009]

Hi!

I have following queries related to filling my taxes for 2006.

I arrived in US on L-1 in Jan'06, my wife joined me later and started working on L-2. Both of us are presently working and have received separate W-2 from our employers.

1) Are we resident or non-resident aliens
2) Since both of us our working I need to file under "Married filling jointly" status which form should I use. I have no other income apart from W-2 (employer).
3) Can I get exemption for student loan being paid in other country (outside US) for education outside US.
4) Can I claim my parents who are not US citizens as dependents getting exemption.

Look forward to some advise on the above.

[AtlantaTaxExpert]

1) You are either dual status or, if you choose, you BOTH can be treated as resident aliens for all of 2006 by filing Married Filing Jointly. The joint filing option is probably the best way to go.

2) Unless you make over $100,000, you can probably get by with Form 1040EZ. Otherwise, Form 1040A.

3) Maybe. It depends if the education was from a qualified academic institution.

4) No. Your parents MUST be in the U.S. to be claimed as dependents.

[samar009]

1) You are either dual status or, if you choose, you BOTH can be treated as resident aliens for all of 2006 by filing Married Filing Jointly. The joint filing option is probably the best way to go.

But we have not spent anytime in US in the year 2005 or 2004. I understand that for us to be treated as resident alien we need to have spent.

Substantial Presence Test
A non-resident alien is classified as a resident alien for tax purposes if they were physically present in the U.S. for 31 days during the current year and 183 days during a three-year period that includes the current year and the two years immediately before that.


2) Unless you make over $100,000, you can probably get by with Form 1040EZ. Otherwise, Form 1040A.

Can we still go for 1040EZ?

3) Maybe. It depends if the education was from a qualified academic institution.
Is there a list of qualified education institutes available anywhere?


4) No. Your parents MUST be in the U.S. to be claimed as dependents.[/QUOTE]

[AtlantaTaxExpert]

1) Under First Year Choice, you would wait until you DUD qualify for SPT in 2007 before filing.

2) Yes.

3) The IRS has such a list.