[magalygc]

Hello:

I am a foreigner J1 since September and although I am married with two kids, my employer put me in the single category, therefore I pay a lot of taxes. I have two questions: My son goes to the daycare, can I receive tax credit for it next year? Or for any other expenses such as travel costs. My husband is expecting his employment authorization as J2, and he thinks he could be working early next year. Will he be able to file as married with children?

Thanks a lot

[AtlantaTaxExpert]

You can claim child care expenses if your spouse is working, attending school or looking for work. If your spouse is a stay-at-home parent, then you are NOT eligible for the child care credit.

This guidance applies whether you file jointly or as a non-resident alien.

If you are both under a J visa, you probably will both have to file as non-resident aliens (Form 1040NR or 1040NR-EZ) for 2007.

The same applies for 2008 unless one of your convert to a work visa (H-1 or H-1B).

[magalygc]

Thanks Atlanta:

It was helpful and I will support you, but could you further explain me, what is the meaning of "looking for work"? because at this very moment he is working as voluntary while he receives his employment authorization. How do I demonstrate that he is "looking for work".
I have another question, I plan to be here for next year only (until December). My employer has already put me in the Optional Retirement Program and also contributes to it (about 50-50). When I am to go back to my country, would I be able to collect my contributions plus my employer contributions? Or only my contributions? Do you think that it is better to avoid the ORP and collect my money now?

Last question, how much is your service for tax help?

Thanks

[magalygc]

I have another question (sorry): Do you think I might receive some credit for my travel costs to come here?

Thanks again

[AtlantaTaxExpert]

As for travel costs, you should be able to claim moving expenses IF your employer did not reimburse them on a tax-free basis.

"Looking for working" means just that: interviewing for jobs, preparing a resume, attending seminars or classes to help prepare you for interviews, etc. If the volunteer work will lead to work with that company, you probably CAN call that looking for work.

As for employer's retirement contribution, that depends on when you "vest" with the company. Some companies allow employees to vest immediate, while others make the employees wait for up to two years. The norm is a one-year vesting period. Once you vest, ALL of the money is yours.