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reshkool · Mar 22, 2007, 09:47 AM

Hi,

This is for current year.
Me and my husband we both work in US right now.

We are going back to India either on 3rd June or 3rd July so for next year's return what should be our status?
- Dual-Status? (As we have income from US until we leave. But we will not have any income after we return to India)
- Resident? (If we go back on 3rd Jul then we will have completed 183 days here)
- Non-Resident? (In case we go back on 3rd June)

And what forms we will need to file? Plus can we use e-file from India?
Can we file JOINTLY?

Any help is appriciated.

Thanks!

AtlantaTaxExpert · Mar 26, 2007, 01:04 PM

You will EACH have to file a dual-status return, which CANNOT be efiled.

Keep my email handy; I can help you file these returns next year.

reshkool · Mar 27, 2007, 07:15 AM

Thanks for answering my questions. I will definitely keep your mail ID for reference.

One more question though. As I was looking through some forms I noticed that there is one deduction called 'Moving Expenses -Form 3903'.
Now we are moving back to India so we are planning to either ship some parcels of household items to India (not furniture or anything BIG). Can we claim those expenses on our return next year? Are we eligible for that?

Why am I asking is, based on that we would either take stuff with us or throw things away.

Plus before leaving we will have dependent care expenses of about 3600$. I will get reimbursed for 2000$ through FSA. Can I claim remaining 1600 for dependent care credit along with Child Tax Credit next year?

Thanks & Regards
R

AtlantaTaxExpert · Apr 2, 2007, 10:58 AM

If you meet the Time and Distance Tests, then, yes, you CAN claim the expense of moving your personal effects.

Yes, you can claim the excess against the dependent care credit as long as the parents either BOTH work or one works and the other is attending college-level classes.

reshkool · Apr 2, 2007, 01:05 PM

Thank you so much for answering my questions.

About Time and Distance test; as we are moving back to India so we definitely pass the Distance test (More than 50 miles from the old residence) but I am not sure about Time test. We are moving at the start of June so by the end of the year 2007 we will not complete 39 weeks by any chance so does that mean we do not pass the test and we are not eligible? Plus we are leaving US so will that create any problem with eligibility?

And if we have 1000$ worth expenses then do they get deducted from taxable income? Or do we get credit in some % (like dependent care expenses)?

Plus do we have to use Movers? Or shipping through USPS is also okay?

Now one more question. This is for current year.
We have spent 8000$ on my child's daycare this year and I had FSA opened on 1st of march. I got reimbursed for about 4200$ (That was my total contribution for whole year) through FSA. We are going to file taxes as 'Married Jointly', so can I claim rest 3800$ for dependent care credit? (All expenses are only for 1 eligible child). I am confused about the $3000 limit for 1 child. Can I claim 3000 after deducting my reimbursed amount from total expenses? Or as I have already got 4200 I am ineligible for this credit?

Thanks & Regards,
R

AtlantaTaxExpert · Apr 5, 2007, 12:48 PM

Shipping through USPS is deductible.

Leaving the U.S. will not affect your eligibility.

Time test is cumulative from when you first arrived, so it IS in excess of 39 weeks.

The FSA benefit is factored into the daycare benefit, so you will be able to claim only $1,800 if you have two or more children.

If you have only ONE child, you will NOT be able to claim ANY daycare credit.